Average wage
The average wage is a calculation variable used by social insurance . It describes the average income of all insured persons in terms of German social insurance .
Assessment and definition
The determination procedure is regulated in Section 69 (2) SGB VI. The federal government determines at the end of a calendar year by ordinance with the consent of the Federal Council
- the final average pay for the previous calendar year and
- a preliminary average salary for the coming calendar year.
The final average wage is determined by extrapolating the average wage of the previous calendar year with the development of gross wages and salaries per employee. The result must be rounded to the nearest full euro. The provisional average wage for the following calendar year is determined by assuming that wages for the current and the following calendar year will increase just as much as for the previous year. The increase in wages used in the first step is therefore applied twice to the previously determined final average wage of the previous year. Here, too, the result must be rounded to the nearest full euro.
In December 2020, the final average wage for 2019 will be made binding. The provisional average wage for 2021 will then be determined by increasing the average wage just determined for 2019 twice with the wage development. The results are rounded to the nearest full euro.
| Calculation for year |
Final average pay for the starting year |
Development of gross wages and salaries |
calculation | Result after rounding |
|---|---|---|---|---|
| 2016 | € 35,363 (value for 2015) | + 2.33% (increase from 2015 to 2016) | € 35,363 × (1 + 2.33%) = € 36,186.96 | € 36,187 (= final average salary 2016) |
| 2018 | 36,187 € (value for 2016) | + 4.66% (2 × increase 2015 to 2016) | € 36,187 × (1 + 2 × 2.33%) = € 37,873.31 | 37,873 € (= provisional average wage 2018) |
The gross wages and salaries per employee are the gross wages and salaries per employee determined by the Federal Statistical Office, excluding persons in work opportunities with compensation for additional expenses according to the system of national accounts . This corresponds to the wage adjustment used as part of the pension adjustment. In order to rule out distorting effects, since 2007 the effects of job opportunities with compensation for additional expenses in accordance with Section 16d (7) SGB 2 (so-called "one-euro jobs") on wage development are no longer taken into account.
purpose
The average pay is used to determine the pay points for calculating the pension entitlements from the statutory pension insurance by comparing the personal pay to the average pay of the respective calendar year. An income equal to the average wage therefore leads to one earnings point (EP). The so-called ' corner pensioner ' is a fictitious employee who has 45 years of income always at the level of the average wage.
The reference value is determined by rounding up the average wage to an amount that can be divided by 420.
Conversion factor (Appendix 10 SGB VI)
As long as the income conditions in the old federal states and in the accession area are different, the lower wages in the accession area will be raised to the western level with a conversion factor. This makes them comparable with the average wage. The conversion factor was determined annually up to the year 2018 in parallel to the average wage and set by ordinance. As with the average wage, a provisional value is set for the current and the last calendar year. Pay points (east) are determined by comparing the increased pay to the average pay.
From 2019, the law on the completion of the pension transition until 2025 will apply a fixed table for converting the average wage, which is already set out in Annex 10 SGB VI.
The "average fees (east)" are not actually existing and reported calculation variables. They are only an intermediate result for calculating the conversion factors and are only given here for comparison. They were calculated by dividing the average wages by the conversion factors for the same year.
- example
- In 2005, an employee in the accession area earned wages of 24,000 euros.
- Up-valued at western level, this results in a fee of 24,000 euros × 1.1827 = 28,384.80 euros.
- This fee results in: 28,384.80 euros ÷ 29,202.00 euros = 0.9720 fee points (east).
values
| year | west | east | Conversion factor | comment |
|---|---|---|---|---|
| 2002 | 28,626 EUR | 23,911 EUR | 1.1972 | |
| 2003 | EUR 28,938 | EUR 24,230 | 1.1943 | |
| 2004 | EUR 29,060 | EUR 24,355 | 1.1932 | |
| 2005 | 29,202 EUR | EUR 24,691 | 1.1827 | |
| 2006 | 29,494 EUR | EUR 24,938 | 1.1827 | |
| 2007 | 29,951 EUR | 25,294 EUR | 1.1841 | |
| 2008 | EUR 30,625 | 25,829 EUR | 1.1857 | |
| 2009 | EUR 30,506 | EUR 26,047 | 1.1712 | |
| 2010 | EUR 31,144 | EUR 26,560 | 1.1726 | |
| 2011 | EUR 32,100 | EUR 27,342 | 1.1740 | |
| 2012 | EUR 33,002 | 28,004 EUR | 1.1785 | |
| 2013 | EUR 33,659 | 28,617 EUR | 1.1762 | |
| 2014 | EUR 34,514 | 29,588 EUR | 1.1665 | |
| 2015 | 35,363 EUR | EUR 30,744 | 1.1502 | |
| 2016 | EUR 36,187 | EUR 31,700 | 1.1415 | |
| 2017 | EUR 37,077 | EUR 32,598 | 1.1374 | |
| 2018 | 38,212 EUR | EUR 33,699 | 1.1339 | |
| 2019 | 38,901 EUR | EUR 35,887 | 1.0840 | Provisional value |
| 2020 | 40,551 EUR | 37,898 EUR | 1.0700 | Provisional value |
| year | west | east | Conversion factor | comment |
Historical values
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Individual evidence
- ↑ Social Insurance Calculation Value Ordinance 2018 , page 7f
- ↑ Legal work instructions of the regional carriers of the German pension insurance: § 69 SGB VI
- ↑ Pension Transfer Conclusion Law, Federal Law Gazette I., 2575 , accessed on November 20, 2018
- ↑ a b SGB VI Annex 10
- ↑ Social Insurance Calculation Size Ordinance 2019 , accessed on November 20, 2018
- ↑ Social Security Calculation Size Regulation 2020 , accessed on November 10, 2019
- ↑ SGB VI Annex 1
- ↑ in 1912 for the first time including employees
