Germany’s wage inequality has narrowed over the past year. According to the “Lohnmonitor” published by the Nuremberg Institute for Employment and Occupational Research (IAB)-as reported by “Der Spiegel”-gross hourly wages rose by an average of 3.9 % in the second half of 2025, reaching €25.88.
The growth among workers in the middle of the income distribution was especially strong, up 5.2 %, outpacing the 3.7 % increase seen among top earners. Workers without a vocational qualification experienced the largest jump, with hourly wages climbing to €18.05. IAB economist Enzo Weber told “Spiegel” that wages today are no longer as unevenly distributed as they were a decade ago, a trend that shows in the reduced range of low‑wage earnings. The findings are based on the IAB’s OPAL survey.
In contrast, wages for employees with higher education have remained largely stagnant over the past two years. Average hourly pay for academics was €30.02 at the end of 2023 and only rose to €30.92 in the second half of 2025.
Weber cautions that the decline in wage disparities could weaken incentives for formal training. If unskilled helpers can already earn a comparatively good income, fewer people may pursue qualifications. Already 13 % of workers under 35 lack a completed educational program.