Salaries in the Construction Industry: What You as a Contractor Really Need to Pay (and Can Pay!)

Salaries in the construction industry: How to lay the foundation for success and strong teams

When it comes to fair and competitive salaries in construction , we are talking about a real key factor for the success of every company in our sector. Sure, legal requirements must be met, but there’s so much more to it: How do we attract qualified professionals, how do we motivate them, and how do we keep them with us in the long run? Especially since we all feel the shortage of skilled workers in the construction industry , a smart salary strategy is becoming increasingly important. Here, we want to give you a good overview of the current salaries in construction . We will look at what plays into this, what the collective wage structures look like, and hopefully provide you with some valuable tips for your own salary and payroll policies. For us as a construction company, it is super important to understand the dynamics of compensation in the construction industry. Only in this way can we act economically and at the same time stand out as an attractive employer. Let’s explore together how you can optimize your salary structures. And if you need support in digitizing your processes, for example with the time tracking for payroll accounting, we are of course happy to assist you.

• This article provides a comprehensive overview of current salaries in construction.
• We analyze influencing factors such as collective wage structures, regional differences, and qualifications.
• You will receive valuable tips for your salary and payroll policies.
• We highlight average salaries for various positions, including training allowances.

For everyone working in the construction industry, clear information about salaries in construction is worth its weight in gold – be it for the next career decision or the upcoming salary negotiation. This way, one can realistically assess where they stand and what development opportunities exist. We as employers naturally need precise knowledge about industry-standard compensation. Only in this way can we create fair packages, keep our personnel costs in check, and of course comply with legal requirements such as the minimum wage. Understanding the salary landscape well greatly helps to keep turnover low and create a good working atmosphere. Knowing how the average salaries in construction salaries look is therefore a real strategic advantage. Informing oneself about salaries in the construction industry is often the first step towards fair compensation for everyone.

With this article, we want to provide you with as much comprehensive and current information as possible about the salaries in construction . We will look at average salaries, take a look at regional differences, the influence of work experience and qualifications, and of course also at the current collective agreements. In addition, we will provide insights into the salary structures for construction workers, employees, and foremen, and we will also examine the training allowances. With all this information, we hope to provide both employees and us employers with a solid foundation for smart decisions regarding compensation. It is important to understand the complex interconnections to successfully navigate challenges like the short-time work in the construction industry successfully. And last but not least: An accurate representation of the salaries in construction plays an important role in the obligation to record working hours in the construction industry most certainly.Salaries under scrutiny: What is currently being paid in the construction industry and what influences it

So, what does the current picture look like for salaries in the construction sector? Several factors come into play here. On average, the average gross annual salary in the German construction industry is around €59,623. If we leave out the extreme outliers, we realistically find ourselves between €53,821 and €64,371 gross per year. The average hourly wage is about €29. These figures provide good reference points for the salaries in construction, but one must always consider them in relation to other factors. As reported, the demand for skilled workers is still huge – this naturally strengthens the bargaining position of qualified individuals and can influence the salaries in construction salary levels.

1. The average gross annual salary in the construction industry is approximately €59,623.
2. Regional salary differences still exist, particularly between Western and Eastern Germany.
3. Important influencing factors on salary are work experience, qualifications, and the size of the company.
4. The sustained high demand for skilled workers positively affects salary development.

Where one works plays a really significant role in the salaries in construction salary levels. Traditionally, salaries in Western Germany are higher than in Eastern Germany, even though efforts are being made to gradually equalize this – a lot is expected to change by 2025. Berlin often stands out with its own salary structure. These regional differences in salaries in construction stem from varying economic conditions and cost of living. Therefore, it is super important to always keep the exact location in mind when comparing salaries and planning. Studies show that depending on which construction profession one specializes in, it can significantly influence earning potential.

What significantly influences your salary

There are some important factors that significantly influence the level of salaries in construction salaries:

• Work experience: Of course, the more experience you bring, the higher the salary generally rises. As a newcomer, you earn less than seasoned veterans – this shows how important it is to constantly develop, even for the salaries in construction.
• Qualifications: A higher formal qualification, such as a master craftsman title or a degree in civil engineering, usually pays off. Specializations and additional qualifications can also positively affect the salaries in construction salary.
• Company size: Larger companies tend to pay more than smaller businesses. This is often due to more complex projects, higher revenues, and simply more established salary structures, which in turn affects the overall salaries in construction salary levels.

Thus, we can see: The salaries in construction salary structures are not static but depend on many individual and company-specific factors. A consultancy for the construction industry can help us companies find salaries that are truly aligned with the market.What do construction workers really earn? A look at ranges and differences

A construction worker in Germany earns on average about €37,700 per year. The range usually spans from €30,000 to €44,700. A newcomer can expect around €27,000 . These figures regarding salaries in construction for construction workers are of course not set in stone. The actual salaries in construction can vary due to overtime, the specific branch within the construction industry, whether one might be self-employed, or additional benefits. What is important is: These are average values, and individual salaries in construction salaries can deviate from this. Construction workers are in demand, and that is generally good for earning potential.

There are also significant differences in the salaries in construction salaries for construction workers, depending on where one works. For example, Baden-Württemberg often ranks higher with an average of €82,200 (although this figure from our research is likely an outlier or specific to a very particular niche and should be taken with caution – the general average for construction workers is significantly lower), while Brandenburg shows rather lower values. Even within cities, there are differences: Large cities such as Stuttgart (approx. €43,100), Cologne (approx. €41,700), and Munich (approx. €41,000) pay better on average than, for example, Dresden or Leipzig (around €34,800 each). These regional aspects must always be kept in mind for the salaries in construction salary comparisons.

Where construction workers earn the most: A comparison of sectors

In which sector of the construction industry one works makes a huge difference regarding the salaries in construction salaries of construction workers. Here are a few examples:

• Mining: Those working in mining can often earn significantly more. This is due to the special requirements and risks in this sector.
• Electrical engineering, precision mechanics & optics: Construction work in these technical areas often falls into the middle salary range. salaries in construction.
• Agriculture, forestry & fisheries: Construction work here is typically associated with lower salaries.

These differences depending on the industry show that one must look closely at the salaries in construction salaries. Large companies like the are always looking for skilled workers in construction and have, depending on the area of deployment and qualifications, very different salary models. For certain jobs, such as therole of construction manager in civil engineering, salary prospects are often above average.

Collective agreements & minimum wage: This governs pay in construction collective agreement for the construction industry, which brings incremental wage increases. The first round of increases already happened in May 2024, with the next coming on April 1, 2025. Such collective agreements are crucial for establishing salaries in construction a uniform baseline wage structure. However, it should not be forgotten that there are still regional differences in the collective wages between Western Germany, Eastern Germany, and Berlin, even if efforts are being made to increasingly equalize them. These collective agreements have a significant impact on how we companies calculate our labor costs and what employees can expect from their salaries in construction salaries. Specific details regarding wage increases can be found in the respective collective agreements; for example, the

The hourly wage in construction typically consists of two parts that are essential for calculating the salaries in construction pay: the collective wage rate (TL) and a construction allowance (BZ). This construction allowance typically amounts to 5.9% of the collective wage rate and is intended to compensate for the special burdens in our industry. Combined, these create the total hourly wage (GTL). This system of how the wage is structured is typical for the salaries in construction and must be accurately considered in payroll accounting. How high the TL is depends on the wage group and the collective region.

The statutory minimum wage also plays a role in the wage structure, especially in the lower segment of the salaries in construction. Because the minimum wage is now integrated into the general wage structure according to the collective agreement 2024, it results in higher starting salaries.For the lowest wage group, for example, a minimum wage of €14.54 has been set in both Western and Eastern Germany . This can make our industry more attractive for newcomers and directly impacts the calculations of the salaries in construction salaries for unskilled or less qualified jobs. As employers, we of course must comply with the minimum wage, which is regularly audited.Office & construction site: What employees and foremen earn – Insights into tariffs and trends

For employees, the salaries in construction are categorized into various salary groups (pay grades) These groups generally focus on qualifications, work experience, and how much responsibility someone has in their position. Typical jobs for employees in our construction industry include commercial staff, draftsmen, technicians, or civil engineers who are permanently employed. The collective wage regulations for these salaries in construction provide a framework. In practice, deviations may occur, for example through above-tariff benefits – especially when certain qualifications are in high demand. Exact salary ranges for commercial employees can be checked in the

. Also for our foremen, there are specific collective regulations that determine their salaries in construction salaries. Foremen are typically placed in pay groups, which show how much responsibility and experience they have on the construction site. As leaders directly on site, they carry a huge responsibility for workflows, coordinating colleagues, and the quality of work. This important role is generally reflected in a higher collective classification and therefore in the salaries in construction salaries for foremen. The pay groups range from construction foremen to certified foremen, who can, of course, earn more. The development of salaries in construction salaries for foremen largely depends on general collective agreements.

How salaries for employees and foremen are developing

When salaries for employees and foremen in the construction industry rise, they closely align with general tariff wage increases. This means that the percentage increases, negotiated for the skilled workers usually also apply to the salaries in construction salaries of employees and foremen. It is common that there is a uniform percentage increase across all pay grades , which influences the overall salaries in construction salary levels. While this ensures that salaries develop similarly across different levels and sectors, it can also mean that the differences based on qualifications and performance do not come to the fore as strongly when additional performance-based components are not included. The salaries in construction nicht so stark zum Tragen kommen, wenn man nicht noch zusätzlich leistungsbezogene Anteile einbaut. Die 4-day week in construction might, in the future, also influence salary structures.

• Collective adjustments: Through regular negotiations, it is ensured that salaries are adapted to economic developments.
• Qualification levels: Those who take on more responsibility and specialize will be better classified.
• Regional equalization: The equalization between East and West continues to progress even in these salary groups.

Seeking the next generation, well-paid: How attractive vocational training is in construction

Regarding the training allowances in the construction industry , a lot has happened in recent years – they have significantly increased! This makes the salaries in construction training opportunities particularly interesting for young people. Particularly cool: In the first year of training, there is now no difference between Western and Eastern Germany. Since May 1, 2024, this has been completely equalized. Apprentices in their first year now receive an truly attractive allowance everywhere. And with each year of apprenticeship, the salary rises again significantly. For example, an apprentice in their third year in the West can expect around €1,560. These tiered and often much higher training allowances compared to other industries clearly indicate: We in the construction industry are investing in our next generation! We want vocational training to be attractive with us, which is also beneficial for the long-term development of the salaries in construction industry and the overall salaries in construction.

Though the allowance is now the same in the first year, there are still differences in the higher years of apprenticeship, especially between West and East. In the East, the allowance in the third year at around €1,450, for example, is still below the €1,560 in the West. These differences in regional differences, vor allem zwischen West und Ost. Im Osten liegt die Vergütung im dritten Lehrjahr mit rund 1.450 Euro zum Beispiel immer noch unter den 1.560 Euro im Westen. Diese Unterschiede bei den salaries in construction for apprentices show that the general equalization of wage levels is simply not fully complete yet. However, it is clear that it is moving towards equalization. This makes vocational training in the construction industry more attractive nationwide and lays the foundation for future salaries in construction.

recruitment. How much you earn during your training is hugely significant when it comes to finding new talent. This is an important part of our strategy against the shortage of skilled workers in the construction industryshortage of skilled workers. A good salary from the outset shows appreciation and makes an apprenticeship in the construction trades or technical building professions simply competitive – whether compared to other industries or the direct start after school. As companies that invest in good apprenticeship allowances, we secure not only motivated young people but also build a qualified workforce for the future, thereby positively shaping the structure of the salaries in construction. This investment in fair salaries in construction pay is therefore strategically important to secure the competitiveness and innovative strength of our entire sector.More money, more career: How to get the best for yourself in the construction industry

A successful salary negotiation is an important step to get the best out of your personal salaries in construction salary potential. Good preparation is the key. Know your market value: Find out what is typical in the industry for your position, your qualifications, and in your region. Salary portals or industry reports can help with this. Show what you can do: Write down what you are responsible for, the successful projects you have completed, and what your special skills are. Be ready to negotiate in the conversation, but stay realistic with your goals. Argue factually and present yourself confidently. If you know what is stated in the current collective agreements and how the company is doing financially, this can also help support your demands during the salaries in construction negotiations. A good understanding of the salaries in construction context is crucial here. According to surveys, construction managers belong to the best-paid jobs – highlighting how important responsibility is.

Continuing education and specialization are real keys to advancing in your salaries in construction career. Our construction industry is always evolving – there are constantly new technologies, materials, or legal requirements. Seize the opportunity to specialize, to make a name for yourself as an expert in a sought-after area. This could be in the field of energy-efficient renovation, digital construction (BIM), or sustainable building. Providers like the BRZ Academy offer courses such as . Such offerings not only expand your knowledge but can also strengthen your position in salary negotiations regarding the salaries in construction salary. Investing in your qualification to improve your personal salaries in construction earning potential always pays off in the long run.

Career paths and what is financially possible

The construction industry offers many different career paths, and salaries develop differently as well. The collective classification of pay grades, from skilled workers to foreman or certified foreman, already shows a clear structure of how one can advance and thus increase their salaries in construction earnings. Even among employees, there are opportunities to work up from a clerk to a project manager to a leadership role. A degree, for example as a civil engineer, often opens doors to jobs with more responsibility and correspondingly better salaries in constructionearnings. Actively planning your career, continuously improving yourself, and gaining important work experience is crucial to fully leverage your salary potential and future salaries in construction career opportunities.

• Skilled worker/specialist: A solid foundation from which to develop well.
• Foreman/site manager: Here you take on initial leadership responsibilities and also receive a higher salary.
• Certified foreman/master: With higher qualifications and responsibilities, one makes a significant salary leap here.
• Construction manager/project manager (with a degree): These are often the top earners in our operational business in the construction industry.

Looking ahead: How inflation, skilled labor shortages, and digitalization are changing salaries in construction

Die High inflation in 2022 and 2023 has affected us all. Although wages have risen on paper, many employees in the construction industry ended up with less in their pockets – keyword real wage losses. This was certainly a huge challenge for those negotiating our rates. In 2024, they tried to create a balance. The results were often a mix of one-time payments (the inflation compensation premium) and percentage increases. The goal was to stabilize people’s purchasing power and ensure that the salaries in construction industries remain attractive. How real wages will develop in the long term remains a key point for employee satisfaction and how well our sector stands in the battle for skilled labor. One must always view the development of the salaries in construction in relation to the overall price development.

• The inflation of recent years led to real wage losses, despite nominal wage increases.
• The ongoing skilled labor shortage strengthens workers’ bargaining positions and pushes the salaries in construction salaries upward.
• Digitalization and sustainability are creating new job profiles and require specialized skills that can positively impact salary.
• Adapting salary structures to these developments is crucial for the attractiveness of the industry.

The fact that we are missing skilled workers everywhere is one of our biggest challenges in the construction industry, but it also has direct consequences on the, ist eine unserer größten Herausforderungen in der Baubranche, aber es hat auch direkte Auswirkungen auf die salaries in construction. Because qualified labor – from skilled workers to foremen to engineers – is in such high demand, workers have a better bargaining position. We companies are increasingly willing to pay more than the collective rates and offer attractive extras to find and retain people. This leads to average salaries in construction salaries generally rising, especially in areas where specialists are sought after and in regions where much is being built. The battle for the best talent will continue to have a significant impact on salary development in the construction industry. Fair salaries in construction wages are a key to countering the skilled labor shortage. Trends such as

digitalization and a focus on sustainability Digitalisierung und der Fokus auf Nachhaltigkeit will permanently change our construction industry and thus also the salaries in construction wages in the long run. New jobs are emerging, for instance in building information modeling (BIM), in drone technology, or in managing smart buildings. Often, one needs specialized digital skills and knowledge of eco-friendly construction. Those familiar with these forward-looking areas can often expect above-average salaries in construction salaries. As companies investing early in training our employees in these areas and also creating incentives in terms of salary, we have a competitive advantage. The salaries in construction task of continually adapting to new requirements will remain ongoing.Our conclusion: Salaries in the construction industry – More than just numbers, a key to success

Phew, the salaries in construction is truly a multifaceted topic! Collective agreements, regional differences, qualifications, experience, and how the economy is currently performing – all play a role. Currently, we see that wages are generally rising. This is due to the skilled labor shortage and the need to compensate for inflation. What to take away: There are incremental wage increases through the new collective agreements, the East-West salaries are continuing to converge (even if it’s not fully achieved yet), and training allowances have significantly increased. For us as employers, this means good planning of personnel costs while also offering competitive salaries in construction salaries to keep up in the race for the best talent. The right salaries in construction salary structures are crucial here. Those working in the construction industry should know their market value and view further education as an opportunity to increase their salary. Transparency and fairness in salary practices are super important for a workplace atmosphere in which everyone is motivated. salaries in construction sind super wichtig für ein Arbeitsklima, in dem alle motiviert sind.

In the future, as well, the salaries in construction influenced by inflation, the shortage of skilled workers, and the new demands of digitization and sustainability. It’s quite possible that a clearer distinction will be made depending on which specializations are currently in demand. Companies that have flexible and performance-oriented pay models and invest in the training of their employees will have the upper hand. Additional benefits and a good company culture are becoming increasingly important as part of the overall package. Keeping an eye on the market and continually adjusting your salary strategy remains crucial for all of us in the construction industry to tackle future challenges and ensure that the salaries in construction remain attractive. The development of salaries industry and the overall salaries in construction is and remains a topic that is constantly evolving.

Our tips for employees and employers

To ensure that the salaries in construction are well positioned in the future, we have a few recommendations:

• For employees: Stay informed about industry averages and collective wage developments. Invest in further training and specialization to increase your market value. Prepare well for salary negotiations and highlight your accomplishments and qualifications.
• For us employers: Let’s offer fair and competitive salaries that can also exceed the basic collective wage. Ensure transparent salary structures and outline development prospects. Let’s use additional benefits and a positive company culture to retain skilled workers and make attractive salaries in construction supplements. And let’s remember the obligation to record working hours in the construction industry for accurate accounting.

Die salaries in construction are more than just a number on the pay slip. They show appreciation, help us retain skilled workers, and are an important factor for our competitiveness. A smart and fair salary policy that takes current salaries in construction into account is therefore an investment in the future of your company and our entire industry. If you want to optimize processes in your company and improve team communication to have more time for strategic HR topics, then we are happy to support you with our software solutions. Just contact us today for personalized advice, so your projects run even more efficiently. Register for free and discover how Valoon GmbH can help you master your challenges in project management and communication.

How do the current collective agreements specifically affect my company? salaries in construction The new collective agreements (valid since April 2024) bring

e.g., May 2024, April 2025) and define minimum standards. For you, this means a necessary adjustment of your wage calculations and personnel cost planning, as well as a more transparent basis for salary discussions. There are still brings incremental wage increases. regional differences (West, East, Berlin) , which must be taken into account.Which factors, besides the collective agreement, are crucial for the level of the

In addition to collective agreements, especially the salaries in construction?

work experience, the qualifications of employees, and the size of the company influence salaries. The regional location and the specific sector within the construction industry e.g., above-ground construction vs. underground construction, specialization) also play an important role. How can I, as a construction company, make competitive

Wie kann ich als Bauunternehmen wettbewerbsfähige salaries in construction to attract and retain skilled workers?

First, analyze industry-standard salaries for comparable positions in your region. Offer performance-based compensation, which may exceed the collective wage. Additionally, attractive additional benefits, training opportunities, and a positive corporate culture can be crucial. Efficient processes, e.g., through digital tools, can help free up budgets for competitive salaries.

Are there significant salary differences for construction workers and foremen in Germany?

Yes, salaries vary. A construction worker earns an average of about €37,700 annually (range €30,000 – €44,700), with beginners starting at around €27,000. Foremen earn significantly more due to collective agreements and their responsibilities . Regional differences, e.g., between Baden-Württemberg (higher) and Brandenburg (lower), are also pronounced.. Regionale Unterschiede, z.B. zwischen Baden-Württemberg (höher) und Brandenburg (niedriger), sind ebenfalls ausgeprägt.

How have training compensation levels developed in the construction industry, and what does that mean for recruiting new talent?

The training compensations have significantly increased and in the first year of training are now aligned nationwide (approx. €935 from May 2024). This makes training in construction more attractive and is an important measure against the shortage of skilled workers. Higher training years still see slight regional differences, but the trend is positive.