Despite the progress, a significant wage disparity persists 35 years after reunification, with full-time workers in West Germany earning an average of 4,810 euros gross monthly in 2024, compared to 3,973 euros in the East, reflecting a 17.4 percent gap.

Since 2014, Germany has seen a seven percentage point decrease in the wage gap, largely driven by the rise of the minimum wage, which has particularly benefited East German workers in low-wage sectors.

From 1999 to 2014, wage convergence was slow, with only a 1.6 percentage point reduction in the gap, highlighting the importance of collective bargaining agreements in promoting wage equality.

The planned increase of the minimum wage to 14.60 euros per hour by January 2027 is expected to further narrow the wage gap, especially at the lower end of the wage distribution where differences are minimal.

Since setting the minimum wage at 12 euros in October 2022, the wage difference at the lower end between East and West has shrunk to about 1 percent, down from 17.5 percent before its implementation.

By April 2024, wages at the lower end in East Germany are only about 1 percent below West German levels, indicating near convergence at the lower wage levels.

While collective bargaining agreements benefit the broader population, only 41.7 percent of East German workers are covered, compared to 50 percent in the West, which influences wage equality.

Researchers emphasize that collective bargaining plays a crucial role in wage equalization, but East Germany still has lower union coverage rates.

Regional disparities within West Germany are notable, with Hamburg having the highest hourly wage at 26.88 euros, and Mecklenburg-Vorpommern the lowest at 20.33 euros, similar to the East-West divide.