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Germany’s 2025 Wage Gains Lift Middle and Low Earners, Narrowing the Gap

Minimum wage hikes plus generous trainee agreements drove the shift, with economists warning that weak productivity limits further pay growth.

Overview

  • Average gross hourly pay reached €25.88 in the second half of 2025, up 3.9% from a year earlier, according to the IAB Lohnmonitor.
  • Median wages rose 5.2% while the ninth decile increased 3.7%, pointing to a smaller spread between mid-level and top earnings.
  • Hourly pay for workers without vocational qualifications climbed to €18.05 from €15.68 over two years, reflecting gains linked to minimum wage increases.
  • Apprentices’ collectively agreed wages rose 6.7% in 2025 to €1,209 per month on average, led by the public sector at €1,329 after a 7.7% jump, with craft trades at €1,093.
  • IAB economist Enzo Weber cautioned that rising pay in helper jobs could weaken incentives to train, noting that 13% of under‑35s lack a completed vocational qualification.