German Real Wages Up 1.9% in 2025, Outpacing 2.2% Inflation and Reaching Pre‑Pandemic Levels
Economy / Finance

German Real Wages Up 1.9% in 2025, Outpacing 2.2% Inflation and Reaching Pre‑Pandemic Levels

In 2025, German nominal wages were 4.2 % higher than in 2024, while consumer prices rose by 2.2 % over the same period.

According to a statement from the Federal Statistical Office (Destatis) on Friday, real wages increased by 1.9 % in 2025 compared with the previous year. After the declines that marked 2020 through 2023, real wages began to rise again. The real‑wage index reached 100.5 points in 2025, almost restoring the level it had in 2019 before the COVID‑19 pandemic (2025=100).

By economic sector, the strongest nominal wage gains in 2025 were seen in:

” Provision of finance and insurance services (+5.7 %)
” Provision of freelance, scientific and technical services (+5.3 %)
” Education and instruction (+5.0 %)

In contrast, the following sectors recorded comparatively modest increases:

” Mining and stone/soil extraction (+2.8 %)
” Agriculture, forestry and fishing (+3.3 %)
” Manufacturing (+3.3 %)

Overall, the earnings of full‑time workers rose by 4.3 % in 2025. Among full‑time employees, women experienced a slightly higher wage growth than men, with average nominal increases of 4.8 % versus 4.1 %.

Low‑income earners once again saw strong growth in 2025, just as they had in 2023 and 2024. When full‑time workers were grouped by income quintile, the lowest quintile (1st) recorded a 6.0 % nominal wage increase, the highest being the 5th quintile, which grew by only 3.7 %-below the overall economy.

Apprentices earned a notably above‑average nominal wage increase of 6.3 % in 2025, while those in marginal employment saw a modest rise of only 0.5 %.

Real wages also increased in the fourth quarter of 2025 compared with the same quarter in 2024. The quarterly real‑wage growth was 1.9 %, resulting from a nominal wage rise of 4.1 % and an inflation increase of 2.2 %. The quarter saw particularly strong growth in the following sectors: real estate and housing (+8.1 %), education and instruction (+6.7 %) and finance and insurance services (+6.5 %).