7 April | Euro

Germany's public sector workers are seeing 5.8% wage increases staggered over year

Germany's public sector workers are seeing 5.8% wage increases staggered over year

German public sector workers are set to receive a staggered wage increase of 5.8%, according to Bloomberg. This decision comes after negotiations between employers and labor unions reached an impasse, prompting the country's arbitration court to step in.

The agreement stipulates that around 2.5 million employees of state-owned companies will receive a 3% pay rise in April, each amounting to an extra 110 euros ($121) per month. Another 2.8% would be granted to them in May 2026. However, German unions had been advocating for an 8% pay rise for workers in waste management, social services, public transport and health care, the agency notes.

Frank Werneke, head of the Verdi trade union, said the result was a reasonable response to the current challenges facing the state.

Wage growth is now a key concern for the European Central Bank (ECB), as it ponders how much further it may cut interest rates, Bloomberg reports.

Elena Berseneva MarketCheese
Period: 11.07.2025 Expectation: 920 pips
GBPUSD falls as UK GDP unexpectedly shrinks
Today at 10:42 AM 1
Brent sell
Period: 17.07.2025 Expectation: 150 pips
OPEC's gloomy forecast drags Brent crude prices lower
Today at 08:53 AM 7
Period: 17.07.2025 Expectation: 26000 pips
Institutional investor demand could push ETHUSD to 3,000
Yesterday at 10:38 AM 35
Period: 16.07.2025 Expectation: 2000 pips
USDJPY prepares to retest 148 Level
Yesterday at 08:19 AM 38
Period: 16.07.2025 Expectation: 900 pips
NVIDIA shares rise amid global AI infrastructure investments
09 July 2025 66
Period: 15.07.2025 Expectation: 800 pips
Breaking downtrend could push USDCAD to 1.375
09 July 2025 44
Go to forecasts