Germany Agrees to 5.8% Salary Increase for Public Sector Employees

The unions Ver.di and dbb Beamtenbund reached an agreement with the Tarifgemeinschaft deutscher Länder to resolve the dispute over public sector wages in German states. The deal stipulates a total salary increase of 5.8% over three phases, with a minimum raise of €100 per month.

The new contract spans 27 months until January 31, 2028, prohibiting any warning or open strikes during this period.

Around 925,000 employees with direct contracts with German states will benefit from the agreement, while the total number of beneficiaries, including all employees and retirees, could reach approximately 2.2 million people.

The agreement covers workers in road administrations, university hospitals, prisons, IT sectors, animal care facilities, daycare centers, and schools.

Additional benefits include an extra €150 per month for trainees and junior staff, along with improved working conditions in eastern Germany to align with western standards, including protection against dismissal and reduced working hours in three university hospitals in the east.

Frank Wernecke, head of the Ver.di union delegation, described the negotiations as the toughest in years, noting that the final outcome is similar to last year’s agreement on federal and municipal government salaries.

Stefan Evers, Berlin’s finance senator, called the agreement painful but manageable to maintain the attractiveness of public service, while Brandenburg’s interior minister René Wilke considered it a recognition of employees’ efforts during difficult times.

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