What is TVoeD 2026 and who is covered?

TVoeD 2026 is the latest public sector agreement for Germany’s federal and municipal employees. It sets pay, hours, and key benefits in 2026. Today it adds a voluntary 42-hour week with bonuses, a 2.8% base pay rise from 1 May 2026, and broader long-term time accounts across eligible roles.

How does the 42-hour week option work under TVoeD 2026?

Employees can choose to work up to 42 hours a week. The extra hours are voluntary and come with tiered bonuses or time credits. Managers gain flexibility to cover staffing needs. Workers can boost income when it suits them, then step back later using saved time if desired.

What are long-term time accounts in TVoeD 2026?

Long-term time accounts let staff bank extra hours for future use, such as extended leave or phased retirement. This helps balance work and life without losing pay. For employers, it smooths overtime peaks across the year and can reduce costly last-minute staffing fixes during busy periods.

What should investors watch next after TVoeD 2026 starts?

Focus on three items: participation in the 42-hour week option, municipal budget updates on payroll versus investment, and retail sales after the May pay rise. Together, these will show if wage momentum lifts spending, stays neutral, or pressures local finances in the second half of 2026.

Global Market Insights

Germany TVoeD Today, February 15: 42-Hour Option, 2.8% May Pay Rise

ByDanny Kontos February 15, 2026

TVoeD 2026 takes effect today in Germany with three big changes. A voluntary 42-hour week with tiered bonuses, a 2.8% base pay rise from 1 May 2026, and expanded long-term time accounts. We explain what TVoeD 2026 means for Germany public sector wages, inflation, and local finances. We also map the likely impact on household spending. For investors, this is a timely read on pay momentum, municipal budgets, and demand trends as agencies work to fill staffing gaps across services.