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Germany Wages Rise 5.5% as Gender Pay Gap Narrows in Q2, IAB Finds

An IAB survey finds lower-paid workers saw outsized raises, compressing gaps across the wage ladder.

Overview

  • Average hourly pay reached €25.61 in Q2 2025, up 5.5% from a year earlier.
  • Men earned €26.18 per hour versus €23.53 for women, placing the unadjusted gap near 10%.
  • The gender gap narrowed by 7.7 percentage points compared with Q4 2023, according to the IAB Lohnmonitor.
  • Workers without vocational qualifications posted the biggest annual gains at 13%, ahead of 8% for those with training and 5.8% for academics.
  • The IAB cites women’s continued catch-up and weakness in industry and construction as possible factors, while pay rose 5.9% for part-time versus 5.5% for full-time.