Germany’s nominal wage index increased by 2.5% in the second quarter, when compared to the same period last year, while consumer prices rose by 2.0% in the same period leading to a real wage growth of 0.5%.

According to Germany’s Federal Statistical Office Destatis, the biggest increases in nominal wages were in energy supply (+4.5%), manufacturing (+4.1%) and real estate (+3.7%). However, nominal earnings growth was particularly low in the public sector and social security (+ 0.6%) and in the arts, entertainment and recreation sector (+ 0.9%).

Compared to the same quarter of the previous year, the nominal wage index in east Germany rose by 3.6% which is higher than the west which saw an increase of 2.4%. Destatis stated that must be taken into account that the earnings level in east Germany differs significantly from that in the west. The gross monthly salary of full-time employees in the second quarter of 2018 was in West Germany stood at €4,541, while in East Germany it stood at €3,365.