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    “I Never Wanted A Third Term, It Was Mere Speculation” – Ex-Nigerian President Obasanjo

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First with the News

Wages In Germany Rise At Record Pace In Second Quarter

August 29, 2023
in Economy, Top Stories, World
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Photo credit: Gorodenkoff |  Shutterstock

Photo credit: Gorodenkoff | Shutterstock

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By Emmanuel Nduka

Wages in Germany rose at a record annual pace of 6.6 per cent in the second quarter of 2023, giving a much-needed boost to consumers’ spending power.

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The sharp increase is also fuelling concerns about inflation being pushed up by rising labour costs.

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As reported by Financial Times FT, the increase, which compared with wage growth of 5.6 per cent in the previous quarter, was the highest since such data started to be collected in 2008.

It meant German annual wage growth exceeded the country’s consumer price inflation rate — which was 6.5 per cent in the period — for the first time since 2021.

According to the federal statistical office, pay levels were boosted by increases to the minimum wage as well as bonuses awarded by many companies to cushion the impact of higher inflation.

In June this year, minimum wage in Germany was primed to rise from €12 to €12.82 per hour. The first increase to €12.41 is to take place next year, with a second boost to follow in 2025.

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