Germany negotiated basic pay rates index, hourly
Germany negotiated basic pay rates index, hourly stood at 122.1 in Jul 2026, according to Deutsche Bundesbank. It is one of the indicators in the Negotiated wages table (Value · Monthly), with a complete series running from Jan 1991 to Jul 2026. The complete series with an interactive chart, free to download.
This indicator in the Negotiated wages table
| Indicator | 07-2026 | 06-2026 | 05-2026 | 04-2026 | 03-2026 | 02-2026 | 01-2026 | 12-2025 | 11-2025 | 10-2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Overall economy | |||||||||||
| Basic pay rates, overall economy, excluding ancillary benefits, excluding one-off payments, on an hourly | 122.1 | 121.9 | 121.8 | 121.2 | 120 | 119.9 | 119.9 | 119.3 | 119.3 | 119.3 | |
| Pay rates, overall economy, on a monthly | 148.6 | 112.8 | 113.2 | 113 | 111 | 114.7 | 111 | 112.4 | 167.2 | 110.4 |
Understanding germany negotiated basic pay rates index, hourly
Measures the agreed baseline compensation for a single hour of labor across all organized German industries, completely stripping out any bonuses, holiday pay, or irregular lump sums. By dividing the negotiated monthly baseline by agreed working hours, this index captures shifts in compensation that result directly from working-time reductions. When unions secure fewer weekly hours without a corresponding cut in monthly pay, the mathematical construction of this hourly metric pushes it upward even if the monthly sibling index remains entirely static. It represents the purest measure of the underlying cost of labor time determined through collective bargaining.
Evaluating this series requires an awareness of structural shifts in union contracts, particularly when major industries transition to shorter standard workweeks. Year-on-year calculations offer the most reliable perspective, sidestepping the unpredictable timing of tariff negotiations that cause irregular step-changes in the index. Users should note that while early estimates are rarely revised, the index only covers workers under collective agreements, meaning it diverges from actual hourly earnings in sectors with high rates of non-unionized employment. The 2020=100 reference level anchors the analysis of these hourly labor cost trends.
Frequently asked questions
- How does a union-negotiated reduction in weekly hours affect this series?
- It pushes the index higher, as the constant baseline pay is distributed over fewer working hours, increasing the per-hour labor cost mathematically.
- Are overtime premiums reflected in this hourly calculation?
- No, it relies strictly on standard negotiated working hours and excludes all supplementary pay, including overtime bonuses.
- Why compare year-on-year instead of examining month-to-month changes?
- Month-to-month figures stay flat between contract settlements, making annual comparisons better for assessing the true trajectory of hourly compensation.