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Mediators Propose Compromise in German Public Sector Wage Dispute

A two-stage salary increase and extended contract duration are at the center of the proposal, with negotiations set to resume in early April.

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Overview

  • The mediators have recommended a two-stage salary increase: 3% or at least €110 per month starting April 2025, and 2.8% in May 2026.
  • The proposed agreement includes a 27-month contract duration and increased annual bonuses starting in 2026.
  • Employees outside hospitals and care facilities may exchange part of their annual bonus for additional vacation days beginning in 2026.
  • Unions and employers will resume negotiations on April 5 and 6, 2025, to decide whether to accept the proposal or continue the dispute.
  • The wage conflict has caused widespread disruptions to public services, with unions citing inflation and increased workloads as key drivers of their demands.