Construction workers get €1,000 inflation bonus

The German construction workers’ union, IG BAU, and the construction employers’ association have agreed an extra €1,000 “inflation-offsetting” bonus on top of existing pay increases.

The current staged pay deal was signed in October 2021 and runs for 33 months, until 31 March 2024. It provides for a 2023 increase of 2.0% plus €450 in the former West Germany and 2.7% in the former East, well below current levels of inflation, which was 8.7% in January.

To compensate for this the union and the employers agreed that employees should receive an inflation bonus of at least €500 in both 2023 and 2024.