New data release: ECB wage tracker continues to indicate that negotiated wage pressures will ease

  • ECB wage tracker, updated with agreements signed up to 19 February 2025, broadly unrevised compared to data release following January Governing Council meeting
  • Forward-looking information continues to suggest that negotiated wage pressures will ease overall in 2025
  • Forward-looking information from the wage tracker should not be interpreted as a forecast

Published on the 12th of March 2025

The European Central Bank (ECB) wage tracker, which only covers active collective bargaining agreements, indicates negotiated wage growth with smoothed one-off payments of 4.7% in 2024 (based on an average coverage of 48.2% of employees in participating countries) and 3.3% in 2025 (based on an average coverage of 40.5%). The ECB wage tracker with unsmoothed one-off payments indicates average negotiated wage growth of 4.8% in 2024 and 2.8% in 2025. The steeply downward trend of the forward-looking wage tracker in 2025 partly reflects the mechanical impact of large one-off payments (that were paid in 2024, but drop out in 2025) and the front-loaded nature of wage increases in some sectors in 2024. The wage tracker excluding one-off payments indicates negotiated wage growth  of 4.1% in 2024 and 3.9% in 2025. See Chart 1 and Table 1 for further details.

The ECB wage tracker may be subject to revisions, and the forward-looking part should not be interpreted as a forecast as it only captures information in a more limited share of active collective bargaining agreements. As new agreements are made throughout the year, the growth rates indicated by the wage tracker are subject to change.

For a more comprehensive assessment of wage developments in the euro area, please refer to the March 2025 macroeconomic projection exercise, which indicates a yearly growth rate of compensation per employee in the euro area of 4.6% in 2024 and 3.4% in 2025, with a quarterly profile in 2025 of 3.8% in the first quarter, 3.7% in the second quarter, 3.4% in the third quarter and 2.8% in the fourth quarter.

The ECB publishes four wage tracker indicators for the aggregate of seven participating euro area countries on the ECB Data Portal.

Updated on the 12th of March 2025