German Government Proposes Legislation to Ensure Adequate Federal Salaries and Pensions
Berlin, January 8, 2025: The German government has introduced a draft law (20/14438) entitled “Federal Salaries and Pensions Adequacy Act” (Bundesbesoldungs- und -versorgungsangemessenheitsgesetz – BBVAngG) to ensure that federal salaries and pensions remain commensurate with the demands of public office.
According to the proposal, the new law would establish an independent commission to periodically review and recommend adjustments to federal salaries and pensions. The commission would be composed of representatives from the government, trade unions, and employers.
The proposed legislation also includes specific provisions to address the following:
- Salary adjustments: The commission would be tasked with ensuring that federal salaries are in line with the average salaries of comparable positions in the private sector.
- Pension adjustments: The commission would also be responsible for reviewing and recommending adjustments to federal pensions to ensure that they remain adequate for retirees.
- Cost-of-living adjustments: The law would require the government to make adjustments to federal salaries and pensions to account for inflation.
The government argues that the proposed legislation is necessary to ensure that federal employees are adequately compensated for their work and that retirees have sufficient income to maintain their standard of living.
“Our civil servants and retirees are the backbone of our public administration,” said Federal Minister of Finance Christian Lindner. “This law will help us to ensure that they receive the fair compensation that they deserve.”
The draft law has been submitted to the Bundestag, Germany’s federal parliament, for consideration. If passed, the law is expected to take effect in 2026.
20/14438: Gesetzentwurf Entwurf eines Gesetzes zur Sicherstellung einer amtsangemessenen Bundesbesoldung und -versorgung (Bundesbesoldungs- und -versorgungsangemessenheitsgesetz – BBVAngG) (PDF)
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