German Real Wages Rose 1.5% in Q2 Despite High Inflation, Driven by Low-Income Workers
Economy / Finance

German Real Wages Rose 1.5% in Q2 Despite High Inflation, Driven by Low-Income Workers

In the second quarter of 2026, real wages in Germany increased by 1.5 percent compared to the previous year’s quarter. According to data released by the Federal Statistical Office (Destatis) on Thursday, while nominal wages rose by 4.1 percent, consumer prices saw a 2.5 percent increase during the same period.

Sector-specific analysis revealed above-average wage increases in the agricultural and forestry, fishing (+8.9 percent), energy supply (+7.6 percent), and financial and insurance services sectors (+7.5 percent). Conversely, the rate of nominal wage growth was relatively low in the creative arts and recreation sector (+3.4 percent), education and training (+2.4 percent), and the provision of freelance, scientific, and technical services (+1.8 percent).

When looking at full-time employees by income bracket, the bottom quintile, which comprises the lowest earners, recorded the strongest average nominal wage increase at 6.7 percent in the second quarter of 2026.

Overall, the wages of all full-time staff increased by 3.9 percent, growing slightly slower than the overall nominal wage development across the economy. Similarly, the top quintile of earners among full-time employees experienced a nominal wage increase of 3.3 percent, which was also below the overall economic development rate, Destatis reported.

Apprentices showed above-average nominal wage growth in the second quarter of 2026, at 6.0 percent compared to the previous year’s quarter. Part-time employees also saw an above-average rise of 4.7 percent.