Tarifvertrag — What It Regulates and Why It Matters

What is a Tarifvertrag?

A tarifvertrag is a collective agreement between a union (workers' side) and an employers' association or individual employer (employers' side). It regulates working conditions for entire industries or companies.

Tarifverträge are the result of collective bargaining — if the sides cannot agree, the union can call for a strike.

Why Do Tarifverträge Exist?

Individual employees have a weak negotiating position against employers. By joining a union, workers gain negotiating power. The tarifvertrag ensures all employees in an industry receive fair minimum standards.

What Types of Tarifverträge Are There?

1. Manteltarifvertrag (MTV)

Regulates general working conditions:

• Working hours (e.g., 35 or 38 hours per week)
• Vacation days (e.g., 30 days instead of statutory 20)
• Notice periods (often longer than statutory)
• Supplements for overtime, night work, holidays
• Christmas bonuses and vacation bonuses

2. Entgelttarifvertrag (Wage Tarifvertrag)

Regulates salaries and wages:

• Wage tables based on qualifications and work experience
• Wage groups (e.g., EG 1–15)
• Automatic salary increases after X years
• Often valid for 1–2 years, then renegotiated

3. Firmentarifvertrag (Company-Specific Tarifvertrag)

A tarifvertrag that applies only to a specific company (e.g., VW, Deutsche Post, Amazon). Often better than the industry-wide tarifvertrag.

Tarifvertrag vs. Employment Contract

How Much More Do You Earn With a Tarifvertrag?

Studies show: employees with a tarifvertrag earn on average 10–15% more than comparable employees without one.

Example: Metal and Electrical Industry (IG Metall, 2026)

• Vacation bonus: approx. 1,000 € + Christmas bonus: 55% of monthly salary + 35-hour week + 30 days vacation

Does a Tarifvertrag Apply to Me?

When Does It Apply?

A tarifvertrag applies to you if:

1. Your employer is covered by the tarifvertrag (member of employers' association) AND
2. You are a member of the relevant union

OR:

1. The tarifvertrag has been declared generally binding (then applies to all employees in the industry, including non-union members)

OR:

1. Your employment contract references a tarifvertrag (e.g., "The IG Metall tarifvertrag applies") — then it applies by contract

How to Find Out if a Tarifvertrag Applies

1. Read your employment contract — does it reference a tarifvertrag?
2. Ask the works council — the works council knows if the company is covered
3. Contact a union — IG Metall, ver.di, IG BCE, etc.
4. Ask your employer — directly in the HR department
5. Tarifvertrag register — online at the Federal Labor Ministry (bmas.de)

Unions in Germany

Major Unions (DGB)

Membership Costs

• Usually 1% of gross salary per month
• Tax-deductible (business expenses)
• In return: legal protection, strike pay, consultation, tarifvertrag increases

Collective Bargaining and Strikes

How Does Collective Bargaining Work?

1. Demands — union presents demands (e.g., 6% wage increase)
2. Negotiations — multiple negotiation rounds (weeks to months)
3. Warning strikes — short work stoppages to apply pressure
4. Agreement — compromise (e.g., 4% increase, 30-month term)
5. Mediation — if no agreement: neutral mediator intervenes
6. Membership vote + full strike — last resort, rare

Do I Have the Right to Strike?

• Yes, if your union calls for a strike
• Strike pay — union pays during strike (approx. 60–70% of net salary)
• No strike right for civil servants (police, teachers in civil service, etc.)
• No wildcat strikes — strikes are only legal if organized by the union

Tips for Foreign Workers

1. Join a union — as a foreigner, you have full membership rights
2. Use legal protection — the union helps free of charge with employer problems
3. Check the tarifvertrag — when hired, ask if a tarifvertrag applies
4. Don't work below the tarifvertrag rate — if a tarifvertrag applies, your employer cannot pay less
5. Run for the works council — as a foreigner, you have active and passive voting rights

Status: March 2026. All information without guarantee.