Trade union collective bargaining archive
Study: Real wages have made up for half of the loss in purchasing power
In the current year, the salaries of many collective bargaining employees have increased significantly. But the inflation from recent years has only been partially offset.
Despite a significant increase in wages in the current year, those employed under collective bargaining agreements in Germany have not yet made up for their losses in purchasing power due to high inflation. The WSI tariff archive of the trade union Hans Böckler Foundation has calculated that real wages are at the same level as in 2018. This means that around half of the purchasing power losses from 2021 to 2023 have been compensated for, explains the head of the institute, Thorsten Schulten.
According to the evaluations of the collective agreements, the salaries of around 20 million employees have risen by a nominal 5.5 percent in the current year. This results in real wage growth of 3.2 percent for the first time since 2020, after deducting the annual inflation rate of probably 2.2 percent.
The frequently paid inflation compensation premiums, which have been exempt from taxes and duties by the state up to an amount of 3,000 euros, are taken into account as a one-off payment. According to Schulten, they have helped to limit losses in purchasing power in the short term and have achieved particularly high real wage increases in the current year. However, since they will not be incurred again next year, they will have a strong dampening effect on the further development of collective wages in 2025.
A few days ago, the Federal Statistical Office reported a real wage increase of 2.9 percent for all employees, with inflation of 1.9 percent. Both figures refer to the third quarter of 2024 compared to the same period last year. Real wages have increased for the sixth quarter in a row.
dpa
Source: Stern
