Randstad ifo Survey: Personnel Managers in Germany Expect their Employees’ Wages to Increase by 5.5 Percent
German personnel managers expect wages to increase by an average of 5.5 percent in 2023. This expectation is shared by those 81 percent of respondents who expect wages to rise, finds the Randstad ifo Personnel Manager Survey. “Especially among small companies and in trade, individual businesses expect even higher wage increases,” says ifo expert Johanna Garnitz. However, 19 percent of the personnel managers surveyed do not expect wages to increase at all.
While 42 percent of businesses plan to pay out a tax-free inflation compensation bonus, 44 percent are still undecided and 14 percent rule it out. On average, companies plan to disburse 71 percent of the EUR 3,000 bonus amount. “Employees in manufacturing and in large companies in particular could benefit from this tax-free bonus,” Garnitz says. These companies plan to pay out around 80 percent of the maximum amount. In trade, by contrast, only a good third is considering granting the bonus. There, employees will receive only EUR 1,500 on average.
The inflation compensation bonus is part of the German government’s third relief package, which is intended to cushion high energy prices and inflation rates. Since October 26, 2022, employers have been permitted to award their employees a tax-free sum of up to EUR 3,000. This voluntary payment is permissible until the end of 2024. The sum is tax-exempt and can also be paid out in several partial payments.
Personnel and Salary Developments in 2023 and Feedback Culture in Companies (4th Quarter 2022)
In the fourth quarter of 2022, the Randstad ifo Personnel Manager Survey covered wage developments in 2023 and special payments in the form of the inflation compensation bonus. This bonus is part of the German government’s third relief package, which is intended to offer citizens relief in times of high energy prices and inflation rates. The bonus is tax-free up to an amount of EUR 3,000 until the end of 2024. Other topics included personnel development in 2023 and the feedback culture in companies.