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Collective wage agreement costs state hundreds of millions

Collective wage agreement costs state hundreds of millions

Collective wage agreement costs state hundreds of millions
Collective wage agreement costs state hundreds of millions

Bracing for Significant Financial Toll: Thuringia's Collective Wage Agreement

Prepare yourself for a hefty price tag, as the collective wage agreement in Thuringia, Germany, is projected to cost the state over 200 million euros. This figure includes an additional 76.5 million euros in personnel expenses for the upcoming year, more than half of which is dedicated to an inflation adjustment amounting to 3,000 euros per employee.

Finance Minister Heike Taubert (SPD) emphasized the agreement's fairness during her recent Erfurt speech, confirming that the higher personnel costs had been factored into the 2024 draft budget. In essence, this means that next year's budget will not necessitate any renegotiations.

However, the extent to which this settlement impacts Thuringia's substantial number of civil servants remains unclear, as per the Constitutional Court's ruling. In the forthcoming weeks, minister Taubert will unveil the specifics regarding the proposed constitutional alimentation, which will determine the future pay structure for civil servants.

Last week, the unions and the collective bargaining association of the German federal states finalized a union agreement in Potsdam. This agreement entails special payments, along with wage increases of approximately 10% up until 2025. In two stages, employees' salaries will be enhanced: table salaries will soar by 200 euros, retroactively from November 1, 2024, followed by a 5.5% upward adjustment on February 1, 2025. Ultimately, the total compensation increase as of February 2025 must surpass at least 340 euros. New trainees in the public sector will also receive a 100-euro boost from November and an additional 50 euros beginning February 2025.

Salary Trends in Thuringia

Public school teachers in Thuringia currently earn salaries that range from €3,225 at the beginning of their careers to €4,086 after 20 years of service. The remuneration structure for state employees, as well as the exact impact of the collective wage agreement, require further investigation to fully comprehend.

Regional Budgets and National Salary Trends

Germany's North Rhine-Westphalia (NRW) and Rhineland-Palatinate have approved their 2025/26 budgets, allocating significant resources to education, research, and infrastructure while promising debt relief programs for municipalities. Germany's average gross salary amounts to approximately €2,222 per month, with high-skilled tech roles potentially earning between €2,747 and €5,495 per month. The exact salary structure for Thuringia's state employees warrants further examination to fully comprehend the impact of the collective wage agreement.

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