Significant wage agreement in the cooperative sector: Volksbanks grant substantial salary increase despite pressure on earnings

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The Employers' Association of Volksbanken and Raiffeisenbanken finalizes an above-average wage agreement with gradual salary increases totalling 11.4 percent - a reaction to the increased competition for qualified workers and the inflation-related real wage trend.

Three-stage adaptation with a historic start

The approximately 135,000 employees of the cooperative banking group will receive a staggered salary increase with a total volume of 11.4 percent. The implementation will take place in three stages, starting with a significant initial stage of 6 percent on April 1, 2025. According to DBV Federal Chairman Stephan Szukalski, this first adjustment marks the "highest single pay increase in 30 years" in the cooperative sector.

The further increase stages provide for an increase of 3.5 percent on May 1, 2026 and a final adjustment of 1.5 percent on April 1, 2027. The collective agreement runs until May 31, 2027, which guarantees planning security for all parties over a substantial period of time.

Specialist premium as an additional element

The agreement to disproportionately increase remuneration for highly qualified specialists and experts above and beyond the regular pay rises is noteworthy. This additional component is a response to the increasing shortage of skilled workers in the financial sector and the specific demographic challenge facing the cooperative banks: by 2032, around 25 percent of the current workforce will retire due to age.

Collective bargaining policy classification and industry comparison

The agreement is part of a series of above-average wage agreements in the banking sector. The DBV's original demand was 13.5 percent over twelve months, with a further 1.3 percent for every six months for longer terms.

Comparable deals were recently concluded in other segments of the financial sector:

• Private banks: 10.5 percent in three stages (since August 2024) for around 140,000 employees
• Postbank in the Deutsche Bank Group: 11.5 percent in two steps for around 8,700 employees
• Public banks (incl. Landesbanken): 11.5 percent in three stages for around 60,000 employees

AVR negotiator Jürgen Kikker emphasized the necessity of the agreement in light of the "high inflation rates of recent years and the changing requirements of the labour market". This confirms the cross-industry trend towards inflation-compensating wage agreements while at the same time reacting to the demographically induced competitive pressure on the labor market.

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