BERLIN, Feb. 29 (Xinhua) -- Real wages in Germany in 2023 showed a "slightly positive trend for the first time since 2019," rising by 0.1 percent year-on-year, the Federal Statistical Office (Destatis) said on Thursday.
Meanwhile, nominal wages climbed at the fastest rate in 15 years, even outgrowing annual inflation levels of 5.9 percent. The strong increases were mainly due to payments of inflation compensation premiums and a higher minimum wage, Destatis said.
To fulfill a central election promise, the government raised the minimum wage from 10.45 euros to 12 euros (12.96 U.S. dollars) in October 2022. An increase to 12.41 euros followed at the beginning of this year.
In addition, inflation compensation bonuses of up to 3,000 euros per employee were made tax-free during the energy crisis. This incentive is valid until the end of 2024, and is now being demanded by numerous professional groups in collective bargaining.
Last year, some sectors reached high wage agreements, including bonus payments. In sectors such as air traffic, and bus and rail transport, however, negotiations and strikes are still ongoing.
Following a five-day strike by train drivers in January that brought rail transport in Germany to a virtual standstill, local public transport is on strike this week throughout the country. This will culminate in a joint action with climate activists on Friday.
"We need significant real wage increases in order to make up for the wage losses of the past," said Thorsten Schulten from the Institute of Economic and Social Research earlier this month. "Private consumption and the domestic economy must be significantly strengthened." (1 euro = 1.08 U.S. dollar) ■
