Higher increases again

Development of training allowances based on collective wage agreements for 2018

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In 2018, training allowances based on collective wage agreements increased across Germany by an average of 3.7%. The increase was thus stronger than in 2017 (2.6%). Throughout Germany, the average training allowance based on collective wage agreements in 2018 was €908 gross per month. The average amount rose to €913 in western Germany and €859 in eastern Germany. In percentage terms, training allowances based on collective wage agreements for 2018 rose slightly more in the eastern regions (3.9%) than in the western ones (3.6%). However, the discrepancy in the collective wage level remains unchanged. As in the year before, the level achieved in the eastern states amounted to 94% of the level of the allowance in western Germany. These results were compiled by the Federal Institute for Vocational Education and Training (BIBB) in their evaluation of training allowances based on collective wage agreements for 2018.

Average allowances were calculated for 181 occupations in western Germany and 153 occupations in eastern Germany. This data was then used to calculate average values for Germany as a whole. The occupations included accounted for 89% of all training contracts. The BIBB has been evaluating training allowances based on collective wage agreements, for which the cut-off date is 1 October, on an annual basis since 1976.

In 2018, there were significant differences in the level of allowances between the various training occupations. The training allowances were particularly high in the skilled crafts occupation of brick layer, for which wages are based on collective wage agreements. In this case, the overall monthly average for Germany was €1,159 (western Germany: €1,175, eastern Germany: €975). High levels of allowances based on collective wage agreements were also paid in occupations such as mechatronics fitter (overall: €1,088, western states: €1,091, eastern states: €1,070), industrial clerk (overall: €1,047, western states: €1,051, eastern states: €981), insurance and financial services broker specialising in insurance (average rate in both parts of the country: €1,035).

Training allowances based on collective wage agreements were comparatively low for 2018 in the occupations of painter and varnisher (average rate in both parts of the country: €718), baker (average rate in both parts of the country: €678), florist (overall: €617, western states: €622, eastern states: €587), hairdresser (overall: €584, western states: €606, eastern states: €387) and chimney sweeper (average rate in both parts of the country: €518).

The evaluation also showed that there had been a relatively sharp rise in allowances for 2018 in a range of training occupations in which there had been a large number of unfilled training positions over recent years. For example, the allowance increase in the occupations of “baker” (6.4% nationally) and “sales person specialising in foodstuffs” (around 6% nationally) were significantly above the overall average. The increase was even greater in eastern Germany in the occupations of “cook” and “restaurant specialist”. In this case, training allowances over the past year rose by 10.6% (western states: +3.4%).

In 2018, there were also marked differences between training sectors: Above average training allowances were achieved in the public sector (average rate in both parts of the country: €999) and in trade and industry (overall: €975, western states: €983, eastern states: €914). By contrast, allowances were below the overall average in the freelance sector (overall €832, western states: €833, eastern states: €809) and in the skilled crafts (overall: €769, western states: €775, eastern states: €706), and in agriculture (overall: €767, western states: €791, eastern states: €652).

A look at the long-term trend shows that when the BIBB evaluations began in 1976, the average monthly trainee allowances based on collective wage agreements in western Germany was €202. By 2018 they had risen to €913, representing a nominal rise of 352%. Over this same period, consumer prices rose by 142%. Taking this into account, from 1976 to 2018 training allowances rose in real terms in western Germany by 87%.

For eastern Germany, training allowances based on collective wage agreements were calculated for the first time in 1992; the average calculated at that time was €321 per month. By 2018, allowances had risen to an average of €859—a nominal rise of 168%. Over this period, consumer prices rose by 62%. Taking this into account, from 1992 to 2018 training allowances rose in real terms in eastern Germany by 65%. When compared over the same period, the real rise in allowances in West Germany—given a rise in prices of 49%—was only 30%.

A detailed presentation of the results as well as twelve downloadable charts are presented in the article “Training allowances based on collective wage agreements: Increases and structures for 2018 and developments since 1976” on the BIBB website at www.bibb.de/ausbildungsverguetung-2018 (German only)

An overall summary of the average levels of allowances calculated for 2018 in the occupations covered can be accessed at www.bibb.de/ausbildungsverguetung (German only)

Further information on the theme of training allowances is available in the BIBB REPORT No. 4/July 2018 entitled: “Minimum training allowance from a company perspective: Assessments using data-based simulations” at https://www.bibb.de/veroeffentlichungen/de/publication/show/9019 (German only)

Image material is available at www.bibb.de/pressefotos.

Specimen copy requested if printed.