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TVöD Pay Hike and Allowance Boost to Reach Public Sector Workers After Delays

Months after the deal, local authorities are now preparing to credit April’s agreed wage rise along with enhanced shift allowances in the coming pay cycle.

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Overview

  • The TVöD agreement delivered a 3% wage increase from April 1, 2025 as the first stage of a total 5.8% raise, with a second 2.8% hike due May 1, 2026.
  • Shift allowances were raised in July from €40 to €100 for permanent work and from €105 to €200 for alternating shifts to ease staffing shortages in healthcare.
  • Many public sector employees had not received the April pay rise or new allowances due to staggered local implementation but will now see back pay with the next payroll.
  • In July, detailed salary tables for roughly 132,000 federal and 2.6 million municipal workers under TVöD-Pflege were published to guide local payroll adjustments.
  • The agreement also introduces a time-off bonus exchange from 2026 and grants an additional vacation day starting in 2027, with the deal running until at least March 31, 2027.