What exactly are unions demanding in the Länder talks?

Verdi and dbb seek a 7% wage increase or at least €300 per month. The floor boosts lower and mid-scale pay more than a pure percentage. This mix aims to protect purchasing power and improve recruitment and retention across schools, police, healthcare, and administration.

How many workers could the settlement affect?

About 900,000 state employees would be covered directly. Unions want the result extended by law to roughly 1.3 million civil servants. That broader reach would influence municipal rounds, staffing strategies, and pay expectations in related public entities and suppliers.

Are more strikes likely during the talks?

Yes, warning strikes may continue to apply pressure until a draft agreement is ready for member votes. Actions can disrupt offices, schools, and clinics, adding overtime or rescheduling costs. Longer disputes could widen to transport or labs, increasing delays and budget stress.

What should investors watch next in 2026?

Focus on the final percentage, the €300 floor, and the contract duration. Also note any staging or one-off payments. These elements will guide payroll costs, service delivery, and indexation in tenders, shaping price dynamics for suppliers with high public sector exposure.

Law and Government

February 13: Germany States’ Pay Talks Advance as Unions Push 7%

ByDanny Kontos February 14, 2026February 14, 2026

Germany public sector pay 2026 is in focus as Länder talks advanced in the third round. Verdi and dbb press for a 7% raise or at least €300 per month. Employers from German states tabled a second offer, signaling movement. Any deal directly covers about 900,000 staff, with unions seeking to extend terms to 1.3 million civil servants. We see ongoing strike risk, payroll cost pressure for Länder budgets, and potential effects on service delivery. For investors, the next steps may guide inflation expectations and local spending in 2026.