Euro Area Wage Growth Slows to 2.2% in 2026

The European Central Bank's wage tracker indicates that negotiated wages in the euro area increased by 2.2% in 2026, according to smoothed one-off payments.

This is based on data from collective bargaining agreements covering 46.9% of employees in participating countries.

The headline wage tracker stands at 2.7% in the first quarter of 2027 and 2.8% in the second quarter of 2027, with coverage of 32.5% and 25.1%, respectively.

The lower reading in the first half of 2026 reflects the mechanical downward effect of one-off payments made in 2024 that were not repeated in 2025.