The Federal Statistical Office reported a 1.9% year-on-year increase in real wages in Germany. This is the result of record nominal wage increases of 5.1% and a slowdown in inflation to 3.2%. Positive trends were recorded in all federal states, including Bavaria and Lower Saxony. Simultaneously, public debate has been dominated by the topic of the gender pay gap, which in Germany still stands at 18%.

Real wage growth of 1.9%

German workers recorded the first such significant increase in purchasing power in years thanks to low inflation.

Gender pay gap unchanged

Despite the overall increase in wealth, the wage difference between women and men in Germany remains at 18%.

Stable tourism sector

The number of overnight stays in regions such as Brandenburg and the Lower Rhine is rising, supporting the local economy.

The latest data from the Federal Statistical Office (Destatis) confirms a significant improvement in the purchasing power of German households in 2025. Nominal wages rose by an average of 5.1%, which, with average annual inflation at 3.2%, translated into real wage growth of 1.9%. This continues a positive trend after years of drastic declines in purchasing power caused by the energy crisis. Particularly strong dynamics were recorded in Bavaria, Lower Saxony, and Thuringia, where wage growth clearly outpaced the rate of price increases for goods and services. Despite these optimistic signals, statisticians note that the level of real wages has still not returned to its peak from 2019, remaining about 1.4% below pre-pandemic levels. Since 2021, eurozone countries have been grappling with record inflation caused by supply chain disruptions and the energy crisis following Russia's aggression against Ukraine, leading to the sharpest decline in real wages in Germany's post-war history. Parallel to the publication of economic data, Germany is observing "Equal Pay Day," which symbolically marks the time until which women work for free relative to men. The gender pay gap in Germany currently stands at 18%, a result significantly worse than the EU average of 13%. Experts point out that these differences stem not only from career choices but also from the so-called motherhood penalty and the structural undervaluation of female-dominated professions. Bold proposals regarding changes to wage-setting methods are emerging in public debate. „Die Gesellschaft nutzt Frauen als billige Arbeitskraft aus, indem sie Pflege und Hausarbeit zu ihrer kostenlosen Pflicht macht.” (Society exploits women as cheap labor by making care and housework their unpaid duty.) — Ruth Schulze In the tourism sector, stabilization has been recorded, as seen in the example of Brandenburg and the Lower Rhine region, where the number of overnight stays increased by nearly 50,000. The tourism industry is becoming a beneficiary of increased citizen wealth, although it struggles with staff shortages. In light of good macroeconomic results, trade unions are announcing further fights for raises, arguing that only significant wage increases will allow for a full recovery of losses from 2021-2023. Employers, on the other hand, are calling for caution, pointing to the risk of losing the competitiveness of German industry in global markets. Wage Dynamics in Germany 2024-2025: Nominal Growth: 4.8% → 5.1%; Inflation: 5.9% → 3.2%; Real Change: -1.1% → +1.9%

Perspektywy mediów: Emphasizes the need for systemic changes to eliminate the gender pay gap and stronger support for workers in wage negotiations. Focuses on threats to economic competitiveness and the need for moderation in wage demands due to high labor costs.

Mentioned People

  • Ruth Schulze — Lawyer specializing in family law, commenting on the gender pay gap issue.