Agreement for public service workers' terms and conditions
A landmark agreement has been reached in the 2025 public sector wage and tariff negotiations, affecting approximately 2.6 million employees. The chief negotiator of the Tarifunion (dbb beamtenbund und tarifunion), Volker Geyer, led the discussions, resulting in a collective bargaining agreement that promises significant improvements for public sector workers.
The agreement includes a linear increase in remuneration, starting from 1 April 2025. Employees will receive at least a 3% raise or 110 euros per month, with an additional 2.8% increase from 1 May 2026. This means a total increase of 5.8% in wages over two stages.
Moreover, from 1 July 2025, higher allowances for shift and shift work will be implemented, benefiting those working non-standard hours. In particularly shift-heavy areas, such as hospitals, the shift allowance will increase from 100 to 250 euros.
The annual special payment will also see an increase, rising to 85% from the calendar year 2026. Employees will have the opportunity to convert parts of this payment into up to three free days.
The agreement brings improvements for employees in the rescue service, including the possibility of 24-hour shifts under certain conditions.
The ver.di chairman and negotiator, Frank Werneke, described the result as a 'difficult result in difficult times.' However, Volker Geyer, the negotiator of the dbb Beamtenbund, was quite satisfied with the agreement.
The working conditions in the public service would become more flexible, modern, and attractive, as stated by the federal negotiator, Interior Minister Nancy Faeser.
However, the compromise reached is not without criticism. The president of the German Association of Towns and Municipalities, Achim Brötel, criticized that it exceeds the pain threshold. The Association of Cities and Municipalities in Saxony estimates the additional costs until the end of 2027 to be around 640 million euros for the 'core budgets' of cities, municipalities, and districts.
The compromise reached does not consider how it will all be paid for, according to the criticism of the municipalities. The additional vacation day agreed upon is unlikely to be compensated for in the current shortage of skilled workers.
From 2026, there will be opportunities for voluntarily increasing working hours in the public sector. The training and study remuneration will increase by 75 euros per month from 1 April 2025 and by a further 75 euros per month from 1 May 2026.
The term of the new TVöD collective agreement is 27 months and ends on March 31, 2027. This agreement marks a significant step forward in improving the working conditions and remuneration for public sector employees in Germany.
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