Germany has a pay agreement with public sector unions that includes around 2.3 million workers employed by municipalities and the federal administration.

The Verdi union and public employers said they had agreed to reverse staggering wage increases, from 4.5% for the lowest income bracket to 3.2% for the highest income bracket.

The agreement, which also includes a one-time bonus of up to 600 euros per employee and additional payments for nurses and geriatric carers, runs until the end of 2022.