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Germany – Temporary workers receive “above-average” pay rises claims iGZ

06 July 2015

Germany’s association of temporary employment agencies (iGZ) has produced a graphic to highlight the claim that temporary workers receive “above-average” pay increases.

The chart below demonstrates the development of the minimum wage for temporary workers in East and West Germany; based on the collective agreements (Tarifvertrag) negotiated by iGZ and the Confederation of German Trade Unions (DGB). 

German salaries, for temporary and permanent workers, have differed between East (Ost) and West since reunification. The country has implemented a convergence plan to gradually align the wage levels between the two regions.

The above chart reflects the lowest possible wage payable under the collective agreement at that time. Therefore, in January 2014, unskilled assistants could be paid a minimum €8.50 in the West and €7.86 in the East.

Under the current collective agreement signed in April 2015, the minimum salary level increased to €8.80 and €8.20, respectively. As a result, the lowest skilled workers have received pay rises of 3.5% in the West and 4.3% in the East.

At the other end of the spectrum, the highest skilled workers in July 2010 could earn a minimum €17.38 in the West and €15.12 in the East. Under the current collective agreement their minimum wage increased to €19.55 in the West and €17.39 in the East.

In June 2016, under the next already agreed collective agreement, both low skilled and highly skilled workers in the West will receive a 2.3% pay rise, while those in the East will receive a 3.7% pay rise.

Data from the German Federal Statistical Office (Destatis) revealed that in 2014 many industries agreed salary increases of 3% or more. Some sectors also reported agreed increases for 2015; however, these were generally lower.

The banking sector agreed increases of 2.4% from July 2014 and a further 2.1% from July 2015. The printing industry agreed increases of 3% in May 2014 but only 1% in April 2015. The construction sector increased salaries in the West by 3.1% in 2014 and 2.6% in 2015. In the East, salaries in construction rose by 3.8% in 2014 and 3.3% this year.