German Wages Rise 4.1% in Q2 2025
Economy / Finance

German Wages Rise 4.1% in Q2 2025

German wages experienced a positive trend in the second quarter of 2025, according to data released Friday by the Federal Statistical Office (Destatis). Nominal wages rose by 4.1 percent compared to the same quarter of the previous year. Simultaneously, consumer prices increased by 2.1 percent, resulting in a real wage growth of 1.9 percent. This continues a positive trend in real wage development.

Significant increases in nominal wages were observed in the financial and insurance services sector, as well as in professional, scientific and technical activities, both registering a 7.6 percent rise. Other business services saw a 5.5 percent increase.

Conversely, the trade, maintenance and repair of motor vehicles sectors recorded comparatively smaller nominal wage increases of 2.7 percent, mirroring gains in the arts, entertainment and recreation industries. Transport and storage exhibited the lowest growth at 1.7 percent, while nominal wages in energy supply decreased by 0.2 percent.

Analyzing full-time employees by income bracket reveals that the lowest income quintile (the bottom 20 percent) experienced the largest nominal wage gains, averaging 6.5 percent, compared to the same period the previous year.

Overall, the earnings of full-time employees increased by 4.3 percent. However, the highest income quintile (the top 20 percent) recorded a nominal wage increase of only 2.5 percent, falling below the general economic development.

Apprentices demonstrated a robust nominal wage growth of 5.5 percent year-on-year, while marginal part-time workers experienced a more modest increase of 0.6 percent, according to Destatis.