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42m ago

WSI: East–West Pay Gap Narrows to 17 Percent

Minimum‑wage gains lifted low earners in the East, leaving structural gaps tied to weaker collective bargaining.

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Overview

  • WSI data show full-time averages in 2024 of €4,810 in the West and €3,973 in the East, a 17.4 percent difference.
  • The gap has closed by about 7 percentage points since 2014, compared with only 1.6 points from 1999 to 2014.
  • Convergence is strongest at the bottom, with April 2024 hourly pay at €13.00 in the West and €12.87 in the East.
  • Statutory minimum wage increases to €13.90 on January 1, 2026 and €14.60 on January 1, 2027 are expected to narrow disparities further.
  • Researchers point to lower tariff coverage in the East (41.7 percent versus 50.0 percent) and large state-to-state gaps, with Hamburg at €26.88 per hour versus Mecklenburg-Vorpommern at €20.33.