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German Public Sector Mediation Proposes Wage Increases and Flexible Work Options

The Schlichtungskommission's compromise includes phased salary hikes, improved allowances, and enhanced flexibility, with final negotiations set for April 5.

  • The Schlichtungskommission has recommended a two-stage salary increase for over 2.5 million public sector workers, with a 3% raise starting April 2025 and a 2.8% raise in May 2026.
  • The proposed 27-month agreement includes increased annual bonuses from 2026 and options to exchange bonuses for vacation days, with an additional vacation day added in 2027.
  • Recommendations also include voluntary increases in weekly working hours to up to 42 hours starting in 2026 and improvements in long-term accounts, flexible hours, and emergency service conditions.
  • Shift work allowances are set to rise to €100 and rotating shift work allowances to €200 as of July 2025, alongside efforts to align working conditions in East and West Germany.
  • Unions and employers are reviewing the proposal, with negotiations resuming on April 5 under a temporary 'peace obligation' that halts strikes until talks conclude.
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