In the 2020 collective bargaining round, a salary increase in two steps was agreed for roughly 60,000 employees covered by collective agreements at Deutsche Telekom AG in the Germany segment and at Deutsche Telekom IT GmbH. The first increase took effect on July 1, 2020. The second will follow on July 1, 2021. The increase covers a total of 5.0 percent in pay groups 1 to 5, 4.8 percent in pay group 6, and 4.6 percent in pay groups 7 to 10. The collective wage agreements have a term of 24 months. They may be terminated for the first time on March 31, 2022.
Two salary increases of 40 euros on July 1, 2020 and July 1, 2021 respectively were agreed for apprentices and dual students. Subsistence allowance for apprentices not living with their parents increased by 20 euros to €270.
Harmonization of remuneration systems
As part of harmonizing remuneration systems at the Group, we agreed a uniform global job architecture with the employee representatives. During the harmonization process, all employees covered and not covered by collective agreements at Deutsche Telekom AG and Deutsche Telekom Service Europe SE were converted to the new job architecture in 2020. By introducing uniform requirements and job descriptions, it was possible to reduce the number of functions from more than 5,500 previously to well below 1,000. The job architecture thus improves the comparability of jobs and creates transparency with regard to the professional development opportunities for all employees at the Group. The job architecture will also be introduced at other companies in Germany in 2021.