Significant Salary Increases for German Leaders Announced

In Berlin, major financial benefits are on the horizon for the country's top officials, including the Federal President, Chancellor, and Ministers, as their salaries are set to increase by 5.8 percent. This adjustment will be applied retroactively from April, following a three percent hike, with an additional 2.8 percent increase scheduled for May 2026.

The salary of Federal President Frank-Walter Steinmeier will rise by approximately 700 euros initially and by another 650 euros in the next year, bringing his total to around 24,300 euros. Chancellor Friedrich Merz will see a retroactive increase of 620 euros, with an additional 600 euros added in May, resulting in a salary of about 21,900 euros. Furthermore, the salaries of the Ministers will increase by roughly 500 euros initially and by 480 euros thereafter, reaching approximately 17,600 euros.

This salary increment is a direct result of the recent collective bargaining agreement reached within the public sector involving both federal and local governments. Negotiators from employee unions and employers agreed on the terms in April, which subsequently prompted the Federal Ministry of the Interior to announce that these adjustments would be applied consistently across the civil service. The ministry confirmed that these increases would also apply to the high-ranking government officials, in accordance with legislative provisions linking their remuneration to civil service salary adjustments.

While the salary increases for government leaders are set in motion, millions of public sector employees are also set to benefit from the same pay increases. For instance, educators in municipal daycare centers, earning approximately 3,900 euros gross, will see an increase of 221 euros monthly by 2026. Additionally, administrative staff with a current salary of around 3,600 euros gross will receive an initial bump of about 110 euros per month, followed by another increase of approximately 100 euros the following year.

Starting in 2026, the annual special payment for civil servants will also increase, and from 2027, employees will enjoy an additional day off. Moreover, employees have the option to convert parts of their special payments into up to three extra days off.

Despite the positive developments regarding salary increases, there remains uncertainty regarding when government officials will receive their back pay for the increases effective from April. It is expected that civil servants may receive their retroactive payments starting in December. The delay in payments was attributed to the absence of an approved federal budget for the current year, as higher payments than those in the previous year were restricted under the provisional budget management rules. The federal budget was passed only in mid-September due to the recent early federal elections.