Germany approves wage increases for civil servants amid high inflation
Amid continued high inflation, German authorities chose to grant a wage rise to more than 2.5 million civil servants after negotiations with local unions. The move is reported by the Associated Press as part of the government’s response to rising living costs.
The agreement on salary hikes runs through the end of 2024. Civil servants will see their monthly pay rise by several hundred euros. The Verdi union initially pressed for a 10.5 percent increase but accepted a negotiated compromise. Inflation in Germany climbed to 7.4 percent in March, underscoring the pressure behind the pay decision.
The settlement includes a tax-free one time payment of 3,000 euros per worker, with the first 1,240 euros arriving in June and monthly installments of 220 euros continuing through February. In March, everyone will receive an immediate monthly wage increase of 200 euros, followed by a further wage boost of five point five percent, with a guaranteed minimum rise of 340 euros per month.
In related economic news, Alfred Kammer, head of the European Department at the International Monetary Fund, noted that European economies are expected to experience slow growth alongside persistent inflation in the near term. He also said that consumer price increases in many developing countries in the region are anticipated to run at double digit rates.