Income for workers in Germany rose in the first quarter of 2024 even after adjusting for inflation, boosted by strong wage growth and bonuses paid by many employers.
Compared to the same period last year, nominal wages rose by 6.4%, according to figures released by Germany's Federal Statistical Office. After adjusting for inflation, real wages increased by 3.8%. This was the highest increase since the agency began tracking those particular figures in 2008.
Nominal wages only rose faster during one previous period, the second quarter of 2023. But at the time, high inflation undercut gains for workers in real terms.
Inflation has slowed considerably in Germany in recent months. Real wages have been rising again since the middle of 2023, after nearly two years of high inflation had driven down real earnings.
In addition to collectively bargained wage increases, incomes also rose because of inflation compensation bonuses paid out by many companies, which were exempt from taxes up to an amount of €3,000 (about $3,250).
Lower-income workers and public-sector employees in particular have benefited from strong wage growth.
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