In July biggest pay increase since April 2004

Collective monthly salaries of employees increased in July as strongly as in April 2004 for the last time. According to the Federal Statistical Office, the pay increase amounted to 2.5% as compared to July 2006. Collective wages of workers even increased by 3.0% in the same period which corresponded to the biggest pay increase since July 1996.

Furthermore, the increase of collectively agreed wages and salaries was bigger than the rise in consumer prices which increased by 1.9% in the period from July 2006 to July 2007. The last such annual increase was registered in October 2006.

These rates of changes reflect the average development of collective wages and salaries. The increases are mainly due to high collective pay increases of up to 4.1% in the metal industry, chemical industry and the construction industry. On the other hand, for people working in other sectors such as the insurance industry and the public service, there were only small increases if any.
Collective monthly salaries increased most in vehicle manufacturing (+4.9%) and in the clothing trade (+4.5%). Also above average were pay rises for employees in the chemical industry and drapery (+4.4% each) as well as in the construction industry (+3.1%). Below average, on the other hand, increased salaries in the publishing and printing industry (+1.3%) and in retail sale (+1.1%).

Mostly grew hourly wages for workers in the clothing industry (+4.8%) and civil engineering (+4.6%). Wages for workers in the vehicle manufacturing industry increased by 4.2%, in the chemical industry by +4.1% as well as in the steel and light metal industry (+4.1%). Below average pay rises were registered in the energy supply industry (+1.3%), water supply and in the hairdresser business (+0.2% each). GERMAN