Berlin
According to a survey by the ifo Institute, employees will receive more wages in 2023. The amount of the salary increase varies depending on the industry.
2022 was a tough year financially. The inflation rate in Germany has cracked the ten percent and the cost of living enormously increased. But what hasn’t increased at the same time is the salary. A loss of prosperity for all consumers.
That should change in 2023. According to a survey by the ifo Institute, 81 percent of the HR managers surveyed expect one this year wage increase in their companies. Whether a salary increase is granted and how high it is varies depending on the industry and company.
Wage increase 2023: There is so much more salary
It is unlikely that the inflation rate will fall again quickly this year. The only way to cushion the increased cost of living is one adjustment of salary. However, wages are not increased in a 1:1 ratio with the inflation rate, but only by a few percent.
According to the ifo Institute, an average increase of 5.5 percent expected. 81 percent of those surveyed expect a salary increase. The remaining 19 percent of HR managers surveyed do not expect more money for their employees.
Individual companies expect “significantly higher wage increases,” explains Ifo expert Johanna Garnitz industry to branch different:
- Industry: Employees in the industrial sector expect the smallest increase. Wages will only increase by five percent in 2023.
- Service: Things are looking better in the service sector. According to the ifo survey, a salary increase of 5.6 percent is expected there.
- Trade: The highest wage increase is expected in trade. The employees get 5.9 percent more salary.
No Raise: Other Ways to Increase Salary
In order to cushion the consequences of inflation, the Federal Council has a compensatory premium decided. Since the end of October 2022, companies have been able to pay their employees an inflation compensation bonus of up to 3,000 euros. The advantage: the premium is tax-free.
But the enthusiasm has its limits. Only 42 percent of those surveyed establishments make use of the opportunity, explains the ifo Institute in a press release. 44 percent are still undecided and 14 percent completely rule out paying the premium.
However, even if an employer pays the premium, this does not mean that the employees receive the full benefit amount obtain. According to the ifo Institute, companies plan to pay out an average of 71 percent. The employees only get 2130 euros. Here, too, the amount of the inflation compensation premium varies depending on the industry and company:
- Industry: Employees in the industrial sector get more than the average. The employees get 80 percent of the maximum amount – this corresponds to a sum of 2400 euros.
- Trade: In retail, on the other hand, employees only get around a third of the bonus. The companies pay their employees an average of 1500 euros.
- large farms: According to Garnitz, employees of large companies in particular should benefit from the tax-free bonus. The companies plan to pay their employees 80 percent of the maximum amount.
companies have up end of 2024 the opportunity to pay their employees the compensatory bonus. “The tax allowance can also be paid out in several installments,” says the ifo Institute.
However, the special payment will not be enough to financial losses to balance. The inflation rate will not fall below five percent in 2023 either. “Focus” reports that the head of macroeconomics at the German Institute for Economic Research (DIW) Alexander Kriwoluzky estimates that it will not turn around again until 2026.
More articles from this category can be found here: Life
