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Collective wage agreement costs state hundreds of millions

Thuringia's Finance Minister Heike Taubert calls the wage agreement for the public service of the federal states fair - even if the costs for the state budget are considerable.

Heike Taubert (SPD), Minister of Finance of Thuringia, speaks. Photo.aussiedlerbote.de
Heike Taubert (SPD), Minister of Finance of Thuringia, speaks. Photo.aussiedlerbote.de

Parliament - Collective wage agreement costs state hundreds of millions

The wage agreement for state employees will cost the Thuringian state coffers more than 200 million euros. The agreement, which Finance Minister Heike Taubert (SPD) described as fair on Tuesday in Erfurt, will result in additional personnel costs of 76.5 million euros in the coming year. Of this, 64 million euros alone would be spent on paying an inflation adjustment totaling 3,000 euros per employee. 1800 euros of this is to be paid into salary accounts in January and a further 120 euros per month from January to October.

In 2025, the additional costs in the budget would then amount to 142.5 million euros. The higher personnel expenses have already been taken into account in the draft budget for 2024, said Taubert. "That was foreseeable." This means that no renegotiations are necessary for next year's budget.

The minister left open the extent to which the settlement will also be transferred to the thousands of civil servants in Thuringia. Following a ruling by the Constitutional Court, there would no longer be a simple transfer to civil servants. A "constitutional alimentation" of the civil servants would have to be calculated. The amount of their future pay would depend on this. "We will clarify this in the coming weeks," said Taubert.

Last Saturday, the trade unions and the collective bargaining association of the German federal states reached a wage agreement in Potsdam. In addition to special payments, wage increases of around ten percent have been agreed until 2025, according to the ministry. Employees in the public sector do a good job and Thuringia needs an efficient administration. Good staff must also be found in the future, said Taubert.

Employees' salaries will rise in two stages: table salaries will be increased by 200 euros with retroactive effect from November 1, 2024 and a further increase of 5.5 percent will take place on February 1, 2025. The total of the increases as of February 1, 2025 must amount to at least 340 euros. Trainees in the public sector will receive an increase of 100 euros from November and a further 50 euros from February 2025.

Read also:

  1. The State Parliament in Thuringia will need to manage the significant financial implications of the collective wage agreement, which is estimated to cost over 200 million euros.
  2. Following the agreement, Household budgets of Thuringian state employees might experience a change in their tariff cleaning due to the inflation adjustment of 3,000 euros per employee.
  3. SPD's Finance Minister Heike Taubert, during her speech in Erfurt, emphasized the fairness of the settlement and mentioned that the higher personnel costs have been accounted for in the 2024 draft budget.
  4. In the coming weeks, Thuringia's civil servants will learn the details of how their salaries might be affected by the constitutional alimentation, following the Constitutional Court's ruling and SPD's pledge to find an efficient solution for the future.

Source: www.stern.de

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