Real wages in Germany rise again
Real wages in Germany rose for the second time in a row in the quarter between July and September - by 0.6 percent compared to the same period last year. The reason for this continues to be the strong increase in nominal wages, as the Federal Statistical Office in Wiesbaden announced on Wednesday. They increased by 6.3 percent, while consumer prices rose by 5.7 percent in the same period.
The payment of inflation compensation bonuses also contributed to the increase, as the statisticians explained. This tax and duty-free bonus payment can amount to up to 3000 euros per employee. The increase in the minimum wage to twelve euros per hour in October 2022 also had a positive effect on overall wage growth in the third quarter.
The nominal wage of marginally employed persons increased at an above-average rate (7.7 percent). According to the statisticians, this was primarily due to the increase in the mini-job earnings threshold from 450 euros per month to 520 euros per month, which has been in force since October 2022, as well as the minimum wage increase.
The increase in real wages in Germany during July to September was primarily driven by the payment of inflation compensation bonuses and the rise in the minimum wage. Between July and September of the following year, these factors are expected to continue influencing real wages in Germany.
Source: www.ntv.de
