Germany achieves equal pay for east and west construction workers

Germany's historic wage deal ends east-west pay divide in construction

Germany's construction industry has reached a major turning point in wage equality. A new collective agreement now ensures the same pay for workers in both eastern and western regions. The deal, described as historic, ends decades of unequal treatment between the two parts of the country.

The latest phase of the 2024 agreement brings a 5.3% wage rise for eastern workers, higher than the 3.9% increase in the west. This step aims to fully close the long-standing pay gap between the regions. The third and final stage of the 2024 collective bargaining agreement has taken effect. Under the new terms, the principle of 'one country, one wage, one salary' now applies nationwide. This means construction workers in eastern Germany will earn the same as their western counterparts for the same work.

Wages in the east will climb by 5.3%, while those in the west will rise by 3.9%. The agreement covers around 920,000 construction workers across Germany, with over 600,000 based in the west. However, the exact number of eastern workers benefiting from the increase remains unclear, as regional employment figures were not specified in the announcement.

Carsten Burckhardt, deputy chairman of the IG BAU union, called the equalisation a 'historic milestone'. The current deal will remain in place until 31 March 2027, securing wage parity for years to come.

The move follows decades of lower pay in eastern Germany, a legacy of the country's division. The latest increase marks the first time wages have been fully aligned since reunification. The agreement guarantees equal pay for construction workers nationwide until at least 2027. Eastern employees will see a larger percentage rise than their western colleagues, narrowing the remaining pay differences. The deal removes one of the last major wage divides between the two regions.