Landmark Wage Deal for German Public Sector Workers

German public-sector unions and federal states have reached a new wage agreement that could impact approximately 3.5 million workers. The agreement includes a 5.8% pay increase over 27 months, with initial hikes beginning on April 1. The deal is valued at roughly 12.34 billion euros.

German public-sector unions and federal states reached a critical wage agreement on Saturday, affecting around 3.5 million workers. The deal promises a cumulative 5.8% pay increase over a 27-month period.

Initial wage raises of 2.8% will be implemented starting April 1, with each worker receiving at least a 100-euro hike. Subsequent increases of 2% and 1% are set for 2027 and 2028 respectively.

Though the 12.34 billion euro agreement challenges financial limits, it provides essential planning security for governments across 15 of Germany's 16 states, excluding Hesse, which is undergoing separate negotiations.

(With inputs from agencies.)