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Earnings & labour costs

Current

Indices of agreed earnings
and working hours

Agreed earnings in the 2nd quarter of 2018: +2.0% on the second quarter of 2017

Agreed earnings in Germany rose by an average of 2.0% in the second quarter of 2018, year on year. The calculation included the agreed basic remuneration and agreed extra payments such as one-off payments, annual extra payments or agreed back payments. The Federal Statistical Office (Destatis) also reports that, excluding extra payments, the year-on-year increase in the second quarter of 2018 was 2.2%. Consumer prices went up by 2.0% over the same period.

More : Agreed earnings in the 2nd quarter of 2018: +2.0% on the second quarter of 2017 …

Collective
agreements

Minimum wage reduces spread of agreed earnings in individual branches

The difference between the highest and lowest earnings groups in collective wage agreements decreased by 0.2% in the overall economy between December 2014, shortly before the statutory minimum wage was introduced, and June 2017. The Federal Statistical Office (Destatis) also reports that the spread was reduced by 5.7% over the same period when only wage agreements are considered which in December 2014 had included earnings groups below the minimum wage of 8.50 euros introduced from January 2015.

More : Minimum wage reduces spread of agreed earnings in individual branches …

Collective bargaining: What has been agreed upon and what are the sectors in which collective bargaining is currently taking place?

In 2016, new collective agreements were concluded in many sectors, such as in the public service of the Federation and the municipalities (TVöD), in the metal-working and electrical industry, in construction and in the chemical industry.

More : Collective bargaining: What has been agreed upon and what are the sectors in which collective bargaining is currently taking place? …

Collective
bargaining coverage

45% of employees worked in businesses bound by collective agreements in 2014

In 2014, roughly 45% of the employees in Germany worked in businesses bound by collective agreements, that is, in businesses subject to either a branch-specific collective agreement (41%) or a company agreement (4%). Based on the results of the structure of earnings survey, the Federal Statistical Office (Destatis) also reports that the proportion of businesses subject to collective agreements was just under 15% in 2014.

More : 45% of employees worked in businesses bound by collective agreements in 2014 …

Christmas bonus

Christmas bonus 2018 for 87% of employees covered by collective agreements

In Germany, nearly 9 in 10 employees covered by collective agreements (86.8%) will receive a Christmas bonus in 2018. The Federal Statistical Office (Destatis) also reports that the average Christmas bonus will be 2,583 euros in gross terms. This is an increase of 2.3% compared with a year earlier. On average, the Christmas bonus of employees covered by collective agreements is 3.8% higher in western Germany (2,595 euros) than in eastern Germany (2,499 euros).

More : Christmas bonus 2018 for 87% of employees covered by collective agreements …

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