Minister Proposes 35 Billion Euro Annual Cost Hike for Civil Servants

Minister Proposes 35 Billion Euro Annual Cost Hike for Civil Servants

To implement the federal constitutional court’s requirements for adequate pay for civil servants, the Federal Minister of the Interior, Alexander Dobrindt (CSU), has put forward a proposal for a new salary structure. According to a report by Spiegel, this draft law on civil servant pay would place additional strain on the budget. The ministry estimates that the reform will cost a total of 6.912 billion euros in both this year and the next, with costs expected to rise in subsequent years. Furthermore, an additional 707 million euros is included retroactively for 2025.

Dobrindt’s experts justify the plan by citing the decisions of the Federal Constitutional Court. The ruling in Karlsruhe determined in the autumn that the pay of numerous civil servants in the state of Berlin had been unconstitutional over the years. The draft law from the Ministry of the Interior states that this decision “also indirectly affects the federal government” and must be “taken into account when adjusting salaries”. Additionally, the Ministry cites the challenging security situation as the reason for the estimated annual extra cost of around 3.5 billion euros.

The draft law suggests that the Federal Republic faces “historical challenges for the entire state”. It argues that a “multiple threat situation for the security of Germany requires both increased protection against external attacks and a strengthening of internal security”. In this environment, possessing “a capable and efficient public service” is deemed crucial. Furthermore, it notes that demographic change and competition for skilled workers necessitate improving “the financial attractiveness of the federal administration”.