Additional personnel costs due to higher wage settlements
City Council approves surplus funds totalling almost 20 million euros
At its meeting yesterday, the City Council approved an over-budget appropriation of almost 20 million euros for the City of Chemnitz's personnel costs in 2024.
The reasons for the higher expenditure are the collective wage agreement for employees and the salary adjustments and back payments for civil servants. At the time the budget 23/24 was drawn up, wage increases of around 2 per cent plus a one-off payment of 1,000 euros per employee were assumed.
However, the actual collective wage agreement resulted in the payment of an inflation compensation payment totalling EUR 3,000 per employee in the period from June 2023 to February 2024.
From 1 March 2024, table salaries increased by 200 euros and then by 5.5 percent, resulting in an average pay increase of 11.5 percent.
For civil servants, the transfer of the collective agreement result for state employees took place by law, resulting in an additional requirement there too.
The almost 20 million euros required to cover this additional expenditure will be covered from various sources: on the one hand through additional income from the so-called key allocations from the Free State, on the other hand through interest gains on investments and through money that the City of Chemnitz has won in two lawsuits.