In the 2018 collective bargaining round, the salaries of roughly 60,000 employees covered by collective agreements at Deutsche Telekom AG and in the Germany operating segment were raised in two stages by a total of 5.2 percent for employees in the lower pay groups and 4.8 percent for employees in the higher pay groups. The second salary increase took effect on May 1, 2019. The duration of collective wage agreements is mostly 26 months; they may be terminated for the first time at March 31, 2020.
For the T-Systems segment, salaries rose in the first stage from January 1, 2019 by 3.0 percent in the lower pay groups and by 2.0 percent in the higher pay groups. A further salary increase of 2.5 percent will follow on January 1, 2020 for all T-Systems employees covered by collective agreements. The collective agreement is valid for a total of 33 months (Sunday, April 1, 2018 to Thursday, December 31, 2020).
The salaries of trainees and cooperative degree students were raised by 30 euros in May 2019. Subsistence allowance for apprentices not living with their parents increased by 20 euros to €250.
Harmonization of remuneration systems
Together with the trade union, we succeeded in harmonizing the remuneration systems in Germany as far as possible from 2018. For instance, non-sales was converted to a fixed annual salary effective January 1, 2019, eliminating variable remuneration. In addition, we achieved the goal of introducing global, uniform job descriptions from 2020, which will initially be used in Germany. This will help gradually establish new, market-oriented, and future-proof job descriptions throughout the Group.