Bahn Workers in for a 6.5% Pay Bump: German Rail Deal Reached

Bahn Workers in for a 6.5% Pay Bump: German Rail Deal Reached

The Deutsche Bahn and the Eisenbahn- und Verkehrsgewerkschaft (EVG) have reached a tariff agreement, with both parties agreeing to a total salary increase of 6.5 percent over the next nearly three years. The agreement will be implemented in several stages, with the Deutsche Bahn announcing the news on Sunday. Employees working in shifts will also receive an additional 2.6 percent salary increase.

The tariff agreement will last for 33 months, until December 2027 and will cover the entire duration of the S3 restructuring program. During this time, employees will also have a protection from layoffs. The salary increase will be implemented as follows: a 2.0 percent increase in July 2025, a 2.5 percent increase in July 2026 and a 2.0 percent additional payment in December 2027, paid annually. Additionally, a one-time payment of 200 euros will be made in April 2025.

“The outcome is a well-balanced one, which is fair to both sides in a challenging phase for the company” said Martin Seiler, the Deutsche Bahn’s personnel director. “The long duration of the agreement gives us the planning security we desperately need for the successful restructuring of the Deutsche Bahn.”

EVG’s chief negotiator, Cosima Ingenschay, stated that the agreement is “very close” to the union’s demands. She added that the additional payments, which will be made annually, will result in an average increase of between 455 and 850 euros for employees, with the potential for higher increases for shift workers, ranging from 1,365 to 2,550 euros, depending on the job.

The agreement is still pending approval from the relevant committees.