The deal, sealed on Thursday and announced by the Verdi union on Friday, comes as inflation in Germany hovers above 7% and follows a recent pay deal for thousands of workers at Deutsche Banks retail unit Postbank.
Under the deal‘s terms, 60,000 public-sector bank employees, such as those who work for Germany’s state-owned Landesbanken and development banks such as KfW, will get a 3% raise from July and a 2% raise a year later.
The deal also includes one-off payments, a one-hour reduction to a 38-hour working week in 2024, and the right to work 40% of the time outside the office.
The bankers had been seeking a 4.5% pay increase in a wage dispute that began last year.
Attention now turns to wage talks for 140,000 workers at the nations private banks – such as Deutsche Bank and Commerzbank – who have also been calling for a 4.5% wage increase.
