Finances: Richter considers a ten percent salary increase to be "unthinkable"

Saxony-Anhalt's Finance Minister Michael Richter (CDU) warned against possible collective bargaining for employees in the federal states in the fall of expectations that were too high.

Finances: Richter considers a ten percent salary increase to be "unthinkable"

Saxony-Anhalt's Finance Minister Michael Richter (CDU) warned against possible collective bargaining for employees in the federal states in the fall of expectations that were too high. The negotiations are still pending, said the CDU politician. But a salary increase of ten percent is unthinkable.

Most recently, federal and municipal employees had gone on strike several times. In view of the high inflation, Verdi and the civil servants' association dbb are demanding 10.5 percent more wages. At least there should be 500 euros more for the approximately 2.5 million employees of the municipalities and the federal government. An offer made by the federal government and local authorities in the second round of collective bargaining at the end of February meant a significant loss of purchasing power, Verdi recently criticized. On Tuesday and Wednesday, employees in hospitals, psychiatric clinics, care facilities and the emergency services should stop working.

A separate collective agreement applies to the employees of the federal states, which expires at the end of September. According to the judge, the first round of negotiations should take place in October. The Minister of Finance expects that the ongoing talks for federal and local employees will be an indication of "how the result will be for us".

For Saxony-Anhalt, an increase of one percent means additional spending of around 40 million euros per year, said the CDU politician. A tax-free payment of 3,000 euros each to the employees would cost the country around 120 million euros.

Since October 26, 2022, employers have had the option of giving their employees a tax- and social security-free payment of up to 3,000 euros through the inflation compensation premium. The regulation applies until the end of 2024.

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