Wages Are Rising—But Saxony Lags Far Behind Other States

Wages in Saxony are rising, but remain well below the level of the economically strong western German states. According to data from the Saxony Regional Office of the Federal Employment Agency, the median gross monthly wage for full-time employees subject to social insurance contributions was 3,588 euros in 2025—six percent higher than the previous year. This means that employees in the Free State earned just under 630 euros less than the national average.

According to the Regional Directorate, the fragmented economic structure in Saxony continues to affect income levels. There are fewer large companies, which are often bound by collective bargaining agreements and therefore typically pay higher wages. “Corporate headquarters and well-paid research and development sectors are also less prevalent in Saxony compared to western regions.”

Fourth from last in the comparison of federal states

In the ranking of federal states, Saxony came in fourth from last. Only in Thuringia (3,508 euros), Mecklenburg-Western Pomerania (3,497 euros), and Saxony-Anhalt (3,363 euros) was the median wage slightly lower. People in Hamburg (7,768 euros), Baden-Württemberg (4,546 euros), and Hesse (4,530 euros) earn the most.

However, there are also differences between the regions of Saxony. In the three major cities, median wages were higher than in the rural districts. Dresden led the way at 4,182 euros, followed by Leipzig at 4,026 euros and Chemnitz at 3,794 euros. Bringing up the rear was the Erzgebirge district with 3,116 euros.