The latest data from the Federal Statistical Office confirms that real wages in Germany increased by an average of 1.9% in 2025. This is the second consecutive year in which wage growth has outpaced inflation, although the pre-pandemic purchasing power level has not yet been fully restored. At the same time, Eurostat reports on the gender pay gap place Poland among the top European Union countries with one of the lowest indicators of wage inequality between women and men.
Real wages in Germany on the rise
The average increase in purchasing power of 1.9% in 2025 is the result of nominal raises of 5.1% with inflation at 3.1%.
Poland a leader in pay equality
With a gender pay gap of 4.5%, Poland ranks third in the EU in terms of the smallest differences in earnings between women and men.
Equal Pay Day observances
In Germany, the gender pay gap remains high at 18%, sparking social debates about systemic discrimination against women.
Regional variation in growth
The strongest income growth was recorded in Bavaria and Lower Saxony, where wages grew faster than the national average.
The German economy experienced a clear revival in household incomes in 2025. According to final data, nominal wages rose by 5.1%, which, with inflation at 3.1%, translated into real wage growth of 1.9%. This trend was particularly evident in states such as Bavaria, Lower Saxony, and Thuringia, where increases in purchasing power were felt across all occupational groups. However, experts note that despite these positive changes, the real wage level remains nearly 2% lower than in the record year 2019, before the outbreak of the crisis related to the pandemic and the war in Ukraine. The level of real wages in Germany underwent a sharp decline in 2021-2022, when record inflation, driven by the energy crisis, drastically reduced the purchasing power of the poorest social groups. Simultaneously with the publication of wealth data, public debate in Europe is focusing on events related to „Equal Pay Day”. This is a symbolic day until which women work for free, considering the average earnings difference relative to men. The latest data from Eurostat bring surprising news for Poland, which ranked third in the European Union in terms of the lowest gender pay gap. This indicator in Poland is currently 4.5%, while the EU average hovers around 13%. The only country where a negative gender pay gap was recorded, meaning that women earn on average more than men, remains Luxembourg. „Der Anstieg der Reallöhne im Jahr 2025 resultiert aus deutlichen Tarifabschlüssen und dem allmählichen Nachlassen der inflationären Dynamik.” (The increase in real wages in 2025 results from significant collective bargaining agreements and the gradual easing of inflationary dynamics.) — Federal Statistical Office Despite optimistic data from Poland, experts warn against excessive enthusiasm. The low pay gap in Poland is partly due to lower labor market participation of women with the lowest qualifications, which statistically raises the average earnings of working Polish women. In Germany, the situation is much more difficult — the difference there is about 18%, which sparks a wave of criticism from social organizations. Family law lawyers point out that systemic barriers, such as shortcomings in childcare, still force women to take up lower-paid part-time work, perpetuating economic inequalities. 1.9% — was the average growth of real wages in Germany in 2025 Regionally in Germany, the situation looks best in Bavaria, where purchasing power increased thanks to a vibrant industrial sector. In Thuringia, wage growth allowed for partially closing the gap with western states. However, new challenges are emerging on the horizon — economic slowdown in China and the costs of energy transition may in 2026 curb employers' willingness to grant further, such high raises, calling into question the continuation of the growth trend in the coming quarters.
Perspektywy mediów: Left-wing media emphasize the exploitation of women and the fact that the pay gap does not account for domestic work, demanding statutory guarantees of equality. Liberal and business media praise the market mechanism of wage growth, seeing it as proof of the stability of the German economy.