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Germany Plans Retroactive Pay Raises for 200,000 Federal Civil Servants

The Interior Ministry’s draft would implement a 2020 constitutional ruling requiring pay to stay at least 15% above basic benefits.

Overview

  • Interior Minister Alexander Dobrindt is preparing a comprehensive civil-service pay reform for early November presentation, with a cabinet decision targeted for mid-November before Bundestag consideration.
  • About 200,000 federal employees, including police and customs officers, are expected to receive increases applied retroactively for five years.
  • Reports indicate a one-off federal budget cost of roughly €1.2 billion for back payments, likely reflected in the 2027 budget.
  • To maintain the legally required distance to transfer payments, adjustments would extend to higher salary grades as well.
  • Unions report concrete assurances and a breakthrough in talks with the Interior and Finance ministries, following a failed 2024 bid that stalled after the coalition collapsed.