German median pay rises 5.1% in 2025, outpacing inflation

Median monthly pay for full-time employees in Germany rose by 5.1% in 2025, outpacing inflation, according to data published by the Federal Employment Agency.

Gross median monthly earnings increased by €203 ($232) to €4,217, while consumer prices rose by an average of 2.2% over the year.

The median represents the point at which half of full-time employees earn more and half earn less. Unlike a simple average, the median is less affected by extreme values, such as the incomes of billionaires.

The Federal Employment Agency said the increase was driven by higher collectively agreed wage settlements.

Women continued to earn less than men, although the gap narrowed. Median monthly pay for women remained €309 below that of men in 2025, down from a gap of €346 a year earlier.

The agency said the remaining difference was largely due to women and men working in different occupations, as well as career breaks linked to family responsibilities, which disproportionately affect women and can limit future career progression.

By region, the state of Hamburg recorded the highest median monthly pay at €4,768, followed by Baden-Württemberg at €4,546 and Hesse at €4,530.

The eastern states of Mecklenburg-Vorpommern, Thuringia and Saxony-Anhalt recorded the lowest median earnings.

Pay also varied significantly by qualification. Full-time employees without a vocational qualification earned a median of €3,133 a month, compared with €4,069 for those with a recognized vocational qualification and €6,146 for university graduates.