Germany: increased apprenticeship remuneration tackles skill shortages

As a result, regional and occupation-related pay inequalities have decreased significantly.

Tariff-based apprenticeship allowance sees highest increase since 1992

At 6.3 %, collectively agreed apprenticeship pay recorded the strongest percentage increase in 2024 since the Federal Institute for Vocational Education and Training (BIBB) began collecting data from apprenticing companies bound by collective labour agreements in 1992. The average gross monthly wage for apprentices in these companies was EUR 1 133 per month in 2024 – around EUR 70 more than in the previous year.

The pay gap between eastern and western Germany has narrowed noticeably, although regional differences persist. In 2024, the average wages for apprentices in western and eastern Germany were almost identical, at EUR 1 133 and EUR 1 135 respectively. This convergence is attributed to a high increase in the east, at 8.9 % compared to 6.1 % in the west.

Despite the overall increase, substantial differences remain between the sectors. In 2024, approximately 14 % of collectively agreed apprenticeship allowances were below EUR 950, particularly in skilled craft occupations.

Disparities in contractually agreed apprentice remuneration decrease significantly

The salary of apprentices in companies not bound by collective labour agreements has increased by 20 % since 2020, outpacing the average salary growth of 13 %.

A recent BIBB report provides an in-depth analysis of the development of apprenticeship allowances between 2020 and 2023, highlighting regional and occupation-related differences. The report reveals that companies that previously paid below the median remuneration level have made disproportional larger adjustments to bring their apprenticeship salaries more in line with that level.

For instance, in the agricultural sector, the average apprenticeship salary of farmers, who were previously relatively low-paid, has risen by 15 %, significantly more than that of comparatively already above-average-paid foresters (+6 %).

Competition for apprentices leads to increased salary

Remuneration in bottleneck occupations has increased significantly more than remuneration in non-bottleneck occupations up to 2023. This suggests that apprenticing companies offering apprenticeship positions are attempting to make those positions more attractive by increasing the remuneration.

However, particularly lucrative apprenticeship occupations that offer high salaries after completion are not always the most sought-after. While chemical technicians, social security clerks and electronics technicians for automation technology have the highest starting salaries as young professionals, the most popular apprenticeship occupation in 2024 remains automotive mechatronics technician.

By comparison, the average gross median salary for graduates in apprenticeship occupations is EUR 34 250 per year. Newly graduated motor vehicle mechatronics technicians generally earn around EUR 33 000 in the initial years following their apprenticeship.

Reporting on apprenticeship allowances

BIBB has been analysing the development of collectively agreed apprenticeship allowances for over 40 years. Its database Tarifliche Ausbildungsvergütungen (collectively agreed apprenticeship allowances) shows the average remuneration for almost all apprenticeship occupations as of 1 October each year. Since the amendment to the Vocational Training Act (BBiG), which came into force on 1 January 2020, the agreed apprenticeship allowance for individually concluded contracts has also been surveyed. Results are available for 174 occupations in western Germany and 117 occupations in eastern Germany.

Apprenticeship allowances are based on whether the apprenticing company is  tariff bound and has to pay minimum wages stipulated in collective labour agreements.  Collectively agreed allowances are based on collective agreements and not individually agreed. These allowances are negotiated by the social partners, for ecample trade unions and employers' associations, and they are binding for their members (tariff commitment).  

For companies not bound by collective agreements, the contractually agreed monthly gross remuneration may be a maximum of 20 % below the standard collective agreements for the industry. Since 1 January 2020, a statutory minimum apprenticeship allowance has applied nationwide, which was increased on 1 January 2025.