German salaries rise faster than inflation in 2025

Salaries in Germany saw a notable increase in 2025, with average gross earnings rising faster than inflation, according to the Federal Employment Agency (Bundesagentur für Arbeit).

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The median gross monthly salary for a full-time employee rose by 5.1 percent or 203 euros to 4,217 euros gross per month.

The median gross monthly salary for full-time employees climbed by 5.1%, an increase of 203 euros, reaching 4,217 euros. This rise outpaced the average inflation rate for 2025, which stood at 2.2 percent. The median represents a midpoint where half of full-time employees earn more and half earn less, providing a less skewed measure than a simple average.

Despite the overall salary growth, considerable regional differences in earnings remain. Hamburg recorded the highest median salary at 4,768 euros per month, followed by Baden-Württemberg (4,546 euros) and Hesse (4,530 euros). In contrast, Mecklenburg-Vorpommern reported the lowest median earnings at 3,497 euros, with Thuringia (3,508 euros) and Saxony-Anhalt (3,563 euros) also showing significantly lower figures.

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The difference between the genders was 309 euros and thus somewhat smaller than before.

The gender pay gap also saw a slight reduction, decreasing by 37 euros compared to 2024 to stand at 309 euros in 2025. The Federal Employment Agency attributes these persistent differences primarily to variations in occupational fields between men and women, as well as career breaks taken for family reasons, which disproportionately affect women. Education and qualifications also play a significant role, with individuals without vocational training earning a median of 3,133 euros, compared to 4,069 euros for those with recognized qualifications, and 6,146 euros for academics.

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The reasons for the persistent differences are primarily different occupational fields for women and men and career breaks due to family developments, which primarily affect women.