GKI: Wage increase plans of domestic businesses

By: Trademagazin Date: 2025. 03. 03. 11:32

In its latest February survey, GKI Economic Research Ltd. asked companies with more than 5 employees about their intentions to raise wages in 2025, among other things. The questionnaire was filled out by 1,408 companies, of which 1,321 answered our question about wages. The companies surveyed plan to raise wages by an average of 6.6% (weighted by number of employees by 6.3%) this year, which means an average real wage increase of 2% in this area, with expected inflation of around 4.5%.

The extent of the planned wage increase varies by sector and also depending on the size of the company. Workers in the construction industry can expect the most modest wage increase: here they can expect an increase of 6.1%. The tight labor market is forcing wage increases above inflation even from ailing industrial companies, but the 6.2% typical of this sector is also below average. Although the performance of commercial companies in 2025 will be significantly determined by demand uncertainty, employees can still expect a 7% wage increase. Employers in the service sector are the most optimistic: our respondents forecast an increase of 7.2%. At the same time, real wage growth can be expected in all sectors.

Slight differences can also be observed by company size. Companies with 5-10 employees plan to increase to the smallest extent, with employers expecting a 6.4% increase. Companies with 10-20 employees and 21-49 employees plan a larger wage increase of 7.1%. There is less room for wage increases in medium-sized companies with 50 to 249 employees, where workers can expect a 6.5% increase. Companies with over 250 employees plan to increase wages by 6.9%, which is above average.

Although the 6-7% wage increase overall seems quite impressive, not all employers are willing to maintain the real value of salaries. A quarter of companies with 5-9 employees do not plan to raise wages at all this year, while 10-13% of larger companies would leave wages unchanged.