Collective wage agreement costs Saxony more than half a billion euros

The collective wage agreement for the public sector will cost Saxony dearly. In the current year, the additional costs amount to around 92 million euros, for 2027 and 2028 to a total of around 450 million euros - based on the year 2025, according to the Ministry of Finance in Dresden. Minister Christian Piwarz (CDU) nevertheless spoke of a "realistic result" and an "acceptable compromise in financially difficult times".

Additional costs for this year have already been factored into the budget

"The result of the negotiations acknowledges the achievements of employees covered by collective agreements on the one hand, but also takes into account the difficult budgetary situation of the federal states on the other," emphasized Piwarz. As the first deputy chairman of the collective bargaining association of the federal states, he had helped negotiate the result on behalf of the employers. Provision had been made for this year's costs in the current budget in Saxony.

According to the collective agreement, employees are to receive a wage increase of 5.8 percent in three stages over 27 months. This was agreed by employers and trade unions on Saturday after several weeks of negotiations.

Wages will be increased by 2.8 percent, but at least 100 euros, on April 1, 2026, followed by a further 2.0 percent increase on March 1, 2027 and the final increase of 1.0 percent on January 1, 2028.