Workers can celebrate with increased income and additional vacation days as millions enjoy these benefits.
After a series of negotiations between trade unions, the federal government, and the Association of Municipal Employers' Associations (VKA), public sector employees in Germany are set to receive salary increases.
The salary increase for public sector employees in 2025 will be a significant 3.0 percent, effective as of April 1, 2025, and will be paid out retroactively. This means that employees will receive the increase in their pay statements starting from the next few months.
The salary increase for public sector employees in 2026 will also be a 2.8 percent increase, effective as of May 1, 2026, and will last for a term of 27 months.
In addition to the salary increases, public sector employees will also receive an additional vacation day starting from 2027.
The annual special payment for public sector employees will be increased from 2026, or it can be converted into up to three additional free days.
However, it's worth noting that the specific form of the bonuses for private sector employees (vacation money or subsidies for leisure activities) is not specified in the agreement. Some employees in the private sector are receiving such bonuses with their next paychecks, which could be a welcome addition to their income, especially during the expensive summer months with concerts, events, and vacations.
Despite the Union of Education and Science (GEW) announcing that the salary increases for approximately 2.5 million public sector employees have not yet been paid out, the exact payment timing for the public sector salary increases agreed in April 2025 is yet to be confirmed.
To find out the precise payment timing, it is recommended to consult official announcements from the Ver.di union or other relevant public sector unions, communications from the German federal or state public employers associations, or authoritative public sector payroll offices.
We will continue to monitor official sources and union announcements to provide updates on when payments are scheduled for public sector employees in Germany.
The salary increases in 2025 and 2026 for public sector employees are a positive development in personal-finance matters, as they are anticipated to have a significant impact on the current year's expenses and future budgeting for the affected workers. With the prospect of further benefits like vacation days and annual special payments, 2026 may present unique opportunities for these employees to manage their personal-finance and business affairs more effectively.
