German Public Sector Workers to Receive Pay Increase in New Deal

The German government, local authorities, and trade unions have agreed on a wage deal for the country's 2.5 million public-sector workers, avoiding the possibility of indefinite strikes. The deal includes tax-free one-time payments and a 5.5 percent salary increase, with a minimum increase of €340. The agreement runs for 24 months and is largely based on a proposal by arbitrators. Municipalities fear the deal may pose new financial challenges for them. Ver.di had initially asked for a 10.5 percent raise and at least €500 more pay over a twelve-month period.