Payment increments and additional vacation days: millions of workers receive retroactive wages
Good news for public sector employees in Germany! Following the agreement reached in early April 2025, a 3.0% salary increase (minimum 110 euros) will be effective from 1st April 2025, with another increase of 2.8% planned from 1st May 2026.
The Educational and Scientific Union (GEW) has announced the impending payout of these increases, which will apply retroactively from 1st April 2025. The term for the salary increase is 27 months.
Key points about the pay increases under TVöD 2025 include: - Increased annual special payment (Christmas bonus and vacation pay) to 85% from 2026 - Additional vacation day from 2027 - Increase in shift allowance from 40 to 100 euros
As of 12th August 2025, most public-sector employees should have already received their retroactive pay increases corresponding to April 2025 and onwards in their recent salary payments.
Exact payroll processing timelines vary, but typically public sector retroactive salary adjustments in Germany appear within one to a few months after the agreed effective date. The pay increase for public sector employees is being implemented now, and the retroactive payout of the 3.0% salary increase for public sector employees will occur in the coming weeks.
Approximately 2.5 million employees in the public sector will benefit from these pay increases. The salary negotiations between the federal government, trade unions, and the Association of Municipal Employers' Associations (VKA) have now been "finally completed". The pay increases for public sector employees will be paid out.
However, it's important to note that as of 12th August 2025, the salary increase has not yet been reflected in the accounts of most employees. Employees should keep an eye on their payroll for the retroactive adjustments in the coming weeks.
[1] Source: TVöD 2025 collective bargaining agreement
- The retroactive salary adjustments for public sector employees in Germany, starting from April 2025, will include a personal-finance boost due to the 3.0% salary increase.
- Beyond the immediate salary increase, there will be further changes in personal-finance matters for public sector employees, such as an increased annual special payment and an additional vacation day from 2027.
