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Inflation Compensation and Wage Increases for Federal and Local Government Employees from June 2021 – Collective Bargaining Agreement Details

Now it’s fixed: there will already be inflation compensation for federal and local government employees from June. Wage increases will follow from March 2024.

The approximately two and a half million federal and local government employees will receive more money from June and can expect a wage increase of 11.5 percent in stages by the end of 2024. The Federal Collective Bargaining Commission of the service trade union ver.di approved the collective bargaining result at the second attempt with a large majority on Wednesday in Berlin.

From June there will be an inflation adjustment of 3,000 euros

The vote, which was already planned for Monday, was adjourned because Saxon municipalities initially did not want to apply the collective agreement for their transport companies. The problem had been eliminated, explained ver.di. In a member survey, two-thirds of ver.di members had spoken out in favor of accepting the tariff compromise.

The collective bargaining agreement reached only after arbitration stipulates that the employees should initially receive a gradual inflation adjustment of 3,000 euros from June and from March next year an average of over 11 percent, but at least 340 euros a month more salary. The term should be retroactive from January 24 months to the end of 2024.

Workers also went on strike in Baden-Württemberg

The parties to the collective bargaining agreement had previously negotiated with one another for months. Again and again, the employee representatives with warning strikes, for example, paralyzed administrations, city cleaning and swimming pools in Baden-Württemberg.

“We were able to avert the complete social blindness of the employers, who had started to give a higher percentage above than below. Now the result contains a very strong social component: because in the first year everyone gets the same one-time payment, from garbage collection to head of office,” said Martin Gross, ver.di country chief, at the end of April on the collective bargaining agreement.

ver.di federal boss is satisfied with the agreement

ver.di and the civil servants’ association had asked for 10.5 percent, but at least 500 euros more money per month for a period of twelve months. The collective bargaining agreement applies to two and a half million salaried employees. For civil servants, however, the collective bargaining result is generally accepted by the employer.

ver.di head Frank Werneke spoke at the collective bargaining agreement on April 22 in Potsdam, which he considered to be the largest collective wage increase in post-war history in the public sector. The association of municipal employers’ associations put the additional costs for cities and municipalities at 17 billion euros over the entire term. The collective bargaining round for the federal states is scheduled to start in the fall.

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