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Negotiated pay rates and labour costs

Negotiated pay rates and labour costs

Negotiated pay rate statistics

The negotiated pay rate statistics of the Deutsche Bundesbank track the development of negotiated wages in all key sectors of the German economy. Data are derived from approximately 500 collective wage agreements and regulations on civil servant pay in around 40 sectors, comprising just under 20 million employees (wage earners, salaried employees and civil servants). This equates to about half of all employees in Germany. Monthly index levels are ascertained for the economy as a whole and for the production sector (including construction). To this end, sector-specific negotiated wages, as measured by the representative pay grade in each case (the standardised pay grade social partners refer to in their collective wage contracts), are condensed accordingly across the individual economic sectors.

Collectively agreed one-off payments and additional benefits (notably holiday pay, Christmas bonus, other bonus payments, capital formation benefits and pension benefits) are generally included when recording negotiated pay rates. In addition, the Bundesbank publishes calculation results excluding one-off payments and negotiated rates of basic pay (i.e. excluding one-off payments and additional benefits). The website also features quarterly data on the development of actual earnings to act as a benchmark. These data are calculated using national accounts data from the Federal Statistical Office. All indicators are provided in unadjusted form on a monthly and hourly basis.

Wage and salary developments in Germany are commented on at quarterly intervals in the Bundesbank’s Monthly Report.

Labour costs

The labour cost index measures changes in labour costs per hour worked and is harmonised across Europe. It indicates wage inflation pressures and contributes to location and competition analyses in a European comparison.

Seasonally and calendar-adjusted time series as well as just calendar-adjusted time series are provided in addition to the unadjusted figures from the Federal Statistical Office.

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