Germany’s collective wages, including special payments, rose by 4.8 percent in 2024, compared to the previous year. Without special payments, collective wages increased by 4.3 percent, according to the Federal Statistical Office (Destatis) on Friday.
In the same period, consumer prices rose by 2.2 percent. As a result, collective wages with special payments increased more strongly than consumer prices for the first time since 2020. The stronger increase in collective wages with special payments is mainly due to the payment of inflation adjustment premiums and higher collective agreements.
The strongest increases in collective wages with special payments were seen in the economic sectors of “Retail, vehicle maintenance and repair” (+9.0 percent) and “Agriculture, forestry and fishing” (+5.4 percent). In contrast, the increases in the sectors of “Financial and insurance services” (+2.7 percent), “Mining and quarrying” (+2.9 percent) and “Information and communication” (+3.0 percent) were the lowest. The development of collective wages in the “Hospitality” sector (+3.9 percent) was also below average, with the significant increase in 2023 (+7.1 percent) also being taken into account.
After the lower performance groups had particularly profited from the payment of inflation adjustment premiums in the collective wage development in 2023, similar structural effects were also observed in 2024 due to the payment of inflation adjustment premiums.
In addition to the regular wage increases, the payment of inflation adjustment premiums, both on a monthly basis and for the year 2024 as a whole, contributed to a higher level of the collective wage index with special payments. Since these premiums are usually paid as a fixed amount, regardless of the performance level, lower earners benefited more strongly from this tax-free, collectively agreed special payment, according to the statisticians.