Agency staff in Germany get 2.5% increase


German unions and the two employers’ associations representing suppliers of agency workers have reached agreement on a new pay deal which delivers above-inflation increases as well as further progress to common pay rates for workers in East and West Germany. 


The agreement runs for 36 months from 1 January 2017 to 31 December 2019, and increases pay in four stages, with the 2017 increases well above the current inflation level (0.9% November). 


In the former West Germany, pay goes up by 2.5% in March 2017, 2.8% in April 2018 and 3.2% in April 2019 with a final smaller adjustment for those on the lowest grades in October 2019. 


In the former East Germany, the increases are higher: 4.0% in March 2017 and March 2018; 3.5% in April 2019; and again small adjustments in October 2019. 


The intention is to bring lower paid East German employees to West German levels by April 2021. After the first increase in March 2017, the lowest hourly rate will be €9.23 in West and €8.91 in East Germany.


€1 = 84p on 12 December 2016