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Earnings & labour costs

Current

Indices of agreed earnings
and working hours

Agreed earnings in 2017: +2.5% on the previous year

Collectively agreed earnings, as measured by the index of agreed monthly earnings including extra payments, increased an average 2.5% in 2017 year on year. The agreed earnings excluding extra payments rose by 2.8% in 2017 compared with 2016. The consumer prices was up by 1.8% in the same period. This means that the earnings of employees covered by collective agreements were above the inflation level for the sixth consecutive year.

More : Agreed earnings in 2017: +2.5% on the previous year …

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.

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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 …

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