The Federal Statistical Office (Destatis) announced on Thursday that real wages rose by an average of 0.1 per cent compared to 2022, according to junge Welt.
German consumers’ purchasing power rose last year for the first time since 2019, but only marginally. Wages rose by six per cent, the fastest pace since 2008, but this was mostly due to one-off inflation compensation bonuses. In real terms, there was almost nothing left of the increase, as consumer prices rose almost as much, by 5.9 per cent.
To fulfil an election promise, the government raised the minimum wage from 10.45 euros to 12 euros ($12.96) in October 2022. An increase to 12.41 euros followed earlier this year.
In addition, compensation bonuses of up to €3,000 per employee were exempt from tax during the energy crisis.
Last year, some sectors reached high wage agreements, including bonus payments. However, in sectors such as air transport, bus and rail transport, negotiations and strikes are still ongoing.
Following a five-day strike by train drivers in January that effectively brought rail transport in Germany to a halt, local public transport went on strike across the country this week. This culminated in a joint action with climate activists on Friday.
Thorsten Schulten from the Institute of Economic and Social Research stated earlier this month:
We need significant real wage increases in order to make up for the wage losses of the past. Private consumption and the domestic economy must be significantly strengthened.
