Berlin's Salary Reform Could Cost Billions and Spark Federal Debate
Politics

Berlin’s Salary Reform Could Cost Billions and Spark Federal Debate

To comply with the guidelines set by the Federal Constitutional Court regarding adequate compensation for civil servants, Federal Interior Minister Alexander Dobrindt (CSU) has proposed a new salary structure. According to reports in “Der Spiegel” the draft law concerning civil servant pay would significantly increase the federal budget. The Interior Ministry’s own calculations suggest that this reform will result in cumulative extra costs amounting to 6.912 billion euros over the current and next year alone, with expenses projected to rise further in subsequent years. Additionally, there are backdated costs of 707 million euros budgeted for 2025.

Experts supporting this measure cite two main reasons. Firstly, they refer to a ruling by the Federal Constitutional Court in the autumn, which determined that the pay levels of numerous civil servants in the state of Berlin had been unconstitutional over several years. The Interior Ministry’s draft states that this particular ruling has an “indirect effect on the federal level” and must be considered when adjusting salary allowances. Secondly, the Ministry argues that the substantial annual supplementary costs, totaling around 3.5 billion euros, are necessary due to the strained security situation.

The draft law further asserts that the Federal Republic faces “historic nationwide challenges”. It notes that the “multiple threat level to Germany’s security demands both increased protection against external attacks and a reinforcement of internal security”. In conjunction with this, the Ministry emphasizes that it is crucial to “have a capable and efficient public service”. Furthermore, the demographic change and the competition for skilled workers necessitate efforts to “improve the financial attractiveness of the federal administration”.