Average incomes in Germany rose only slightly in 2020, a year in which the coronavirus pandemic had a severe impact on workers and the economy. 

Median monthly salary rose by 26 euros in 2020

The so-called median income in Germany rose by just 26 euros last year, according to new figures from the Federal Employment Agency (BA). In the manufacturing and hospitality sectors, average incomes actually fell. 

The median monthly salary earned by employees working full-time hours subject to social security was 3.427 euros in 2020, an increase of 26 euros compared to 2019, the BA announced in its annual salary evaluation. 

Sectors where salaries particularly increased in 2020 include insurance (median income up by 111 euros), health and social services (up by 80 euros) and in education and teaching (up by 77 euros). 

Pandemic depressed income growth in Germany

Above all, the BA points to the coronavirus pandemic and its economic consequences as the reason for the negligible increase. The widespread use of short-time working (Kurzarbeit) to protect workers from losing their jobs in particular squashed salary growth. Without the effects of the pandemic, the median income would have gone up by a further 69 euros, the Federal Agency said. 

In general, according to the BA’s figures, employees working for large international companies generally earn more than those working for smaller companies. A good education, especially a degree from a higher education institution, offers a good chance of boosting one’s earnings. In the eastern federal states, people still earn less than in the west, but the difference is slowly disappearing.