Germany’s 2.5M public workers win landmark 5.8% wage hike by 2027

Unions and employers strike a historic deal—but not everyone benefits equally. Some sectors, like *wageworks*, still negotiate their own terms.

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2025 November 17 . 7:06 AM

1 min read

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Trade unions agree demands for state-level wage round - Germany’s 2.5M public workers win landmark 5.8% wage hike by 2027

In a significant move, German unions and employers have agreed to a new wage deals that will benefit over 2.5 million employees. The agreement, reached in April, is set to boost salaries in two stages by 5.8 percent, ensuring a minimum increase of €110 per month by 2027.

This collective bargaining agreement covers employees working for the federal government and local authorities. The shop deals was struck between both unions and employers, marking a notable development in the German labour market.

Notably, this agreement does not apply uniformly across all sectors and regions. In certain industries, such as the wageworks and electrical sectors, and specific operations, employers have the liberty to negotiate separate wage agreements, independent of the state-level tariff negotiations. However, other states and sectors adhere to the general tariff binding.

The wage increase, set to be implemented in stages, will directly impact over 2.5 million employees. While the specifics of the agreement vary across sectors and regions, this deals underscores the ongoing dialogue and negotiation between unions and employers in Germany's labour market.