Inflation rate at 2.4 percent: inflation eats up collectively agreed wage increases

Inflation rate at 2.4 percent
Inflation eats up collectively agreed wage increases

Despite the ongoing pandemic, employees with a collective agreement have a significant plus on their pay slip in the second quarter compared to the previous year – also thanks to the state corona bonus. At the end of the month, however, this will only be felt by very few, thanks to the high inflation.

Employees with a collective bargaining agreement got on average more money in the second quarter – however, the development is lagging behind the increase in consumer prices. The collective wages increased by an average of 1.9 percent compared to the same quarter of the previous year, as the Federal Statistical Office announced. During the same period, consumer prices rose by 2.4 percent. According to the Federal Office, collectively agreed basic remuneration and special payments such as one-off payments, annual special payments or collectively agreed back payments are taken into account for collective wages.

The increase without special payments was 1.4 percent compared to the same quarter of the previous year. Collective earnings with special payments in the manufacturing sector and in other economic services developed above average (plus 2.8 percent each). “The increase in the manufacturing industry can mainly be traced back to the corona premium of 500 euros paid in the metal and electrical industry in June 2021,” said the Federal Office. In the case of other economic services, in addition to regular wage increases, the adjustment of wages in the east to those in the west in the area of ​​temporary employment was particularly noticeable.

In the construction industry (plus 2.5 percent), in the hospitality industry as well as in health and social services (plus 2.4 percent each), collective wages, including special payments, were “significantly higher than in the same quarter of the previous year” in the second quarter of 2021, according to the Federal Office. Collective wages, including special payments, rose at a below-average rate, however, especially in agriculture and forestry (plus 1.0 percent), in financial and insurance services (plus 1.1 percent) and in public administration, defense and social security (plus 1, 2 percent).

According to the Federal Office, the widespread use of short-time working due to the corona pandemic has no influence on the tariff indices. The average change in monthly and hourly earnings agreed through collective bargaining agreements is measured. Changes in actually paid working hours are therefore not included in the tariff index.