In the course of the 2018 collective bargaining round, the salaries of roughly 20,000 employees covered by the collective agreement were raised in two stages by a total of 5.5 percent for the lower pay groups and 4.5 percent for the higher pay groups. After the first increase on January 1, 2019, the second increase took place on January 1, 2020. The new collective wage agreement has a term of 33 months and will expire on December 31, 2020.
In 2019, we began to gradually harmonize regulations for variable remuneration at T-Systems as well. As a result of the 2018 collective bargaining round, variable remuneration in non-sales was eliminated effective January 1, 2021. A switch was made to fixed remuneration. In addition, negotiations on general pay increases were due to take place at the beginning of 2021, after the termination of the collective wage agreements on December 31, 2020.