IG Metall union in Germany agrees to a 5.2% wage increase in beginning in June 2023
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The largest trade union in Germany, IG Metall, and employers reach an agreement. In a key western state, wages will rise 5.2% next year and 3.3% in 2024. Employees will receive a tax-free payment of 3,000 euros ($3,100) under the agreement. After five rounds of negotiations and a series of warning strikes, a deal was reached.
Consumer price inflation was 11.6% in October, reducing workers’ purchasing power. Due to rising material and energy costs, employers do not see much room for wage increases.
A 5.2% pay increase will be implemented in June 2023, followed by a 3.3% increase in May 2024. Companies will be able to bring forward or postpone payments to shift the cost burden to another calendar year if necessary.
The 3,000 euro payment will be split into two instalments, the first in March 2023 and the second the following year. The parties also agreed to respond quickly and flexibly if the energy crisis worsened.
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