The increasingly narrow gap between civil servants’ salaries and basic welfare benefits is bringing the issue of inadequate pay for civil servants into sharp focus. Federal Interior Minister Alexander Dobrindt is planning a comprehensive salary reform that is intended to apply retroactively for five years. Around 200,000 civil servants will benefit from this, because, according to a ruling by the Federal Constitutional Court, their current salaries no longer meet legal requirements. The lowest income groups, in particular, are now dangerously close to the level of basic social security benefits. The planned salary adjustment represents a massive challenge for the federal budget, while civil servants are hoping for fairer compensation. (wiwo: 26.10.25)
Billions of euros in costs for the federal budget
The planned salary reform involves an enormous financial outlay. Approximately 1.2 billion euros in additional funds must be allocated to the state finances to meet the legal requirements.
The money is to be raised precisely in 2027, a year in which a deficit of 37 billion euros is already looming. Finance Minister Lars Klingbeil is trying to mitigate the burden, but constitutional requirements leave no room for postponement. Since the 2020 ruling, it has been stipulated that civil servants must receive at least 15 percent more than recipients of basic social security benefits – a threshold that has long been undercut.
Civil servant salaries under pressure due to citizen’s allowance
The significant increase in the citizen’s allowance by twelve percent at the beginning of 2024 further exacerbated the problem. The gap between social benefits and civil servant salaries shrank rapidly, thus violating the principle of adequate remuneration. In many lower salary grades, the pay is barely sufficient to guarantee the required minimum. Some federal states have already adjusted their systems, but the differences remain significant. Several lawsuits before the Federal Constitutional Court show that the issue remains highly sensitive.
Imbalance between salary grades
Dobrindt must not only raise the lower grades but also the higher ones. The so-called wage differential principle stipulates that clear salary differences must exist between the individual positions. Due to previous collective bargaining rounds and salary adjustments, this gap has shrunk considerably. Trade unions had insisted on social components that primarily benefited the lower grades. As a result, the system of graduated remuneration lost its balance. However, a fair civil servant pension system requires that top positions also remain adequately compensated.
Political blockades and new dynamics
Previous governments also struggled with this issue. In 2021, Olaf Scholz, as Finance Minister, rejected a salary reform. The ministry stated that he did not want to give preferential treatment to civil servant families. Nancy Faeser also made an attempt in 2023, but Christian Lindner vetoed it. After the collapse of the coalition government in the same year, the project lost momentum. Only after the 2025 federal election did Dobrindt take up the project again and initiate the long-overdue salary adjustment.
The Importance of Remuneration in the Civil Service
The civil service system is based on the principle of adequate remuneration. The state is obligated to provide for civil servants and their families for life – commensurate with their rank and responsibilities. The German Civil Servants’ Federation emphasizes that this provision for civil servants remains a cornerstone of public administration. Without it, loyalty to the state would be difficult to guarantee.
Outlook: Legislation Nearing Passage
The ministries involved are currently voting on the final draft. The Federal Cabinet could approve the document and submit it to the Bundestag in mid-November. A historic reform of civil service salaries is thus nearing completion. For Dobrindt, this represents a political success; for the federal budget, it means an enormous burden. However, after years of legal uncertainty, a fairer system of civil service remuneration finally seems within reach.