Germany's pharma workers get pay rise despite difficult times

The wages of approximately 585,000 chemical and pharmaceutical employees in Germany are set to increase thanks to a deal announced on Wednesday that comes despite industry struggles that are exacerbated by the Middle East conflict.

The deal was agreed by the trade union IG BCE and the employers' association BAVC after two days of negotiations.

The employers also committed to making payments to safeguard jobs in the crisis-hit chemical industry.

Under the agreement, wages and salaries for employees will increase in two stages. From January 2027 they are to rise by 2.1% and from January 2028 by a further 2.4%. From March to December of the current year, however, wages will remain at the previous level.

For 2026 and 2027, companies will also pay a contribution of €300 (about $350) per employee per year to safeguard employment into the industry's demographic fund. This has been in place since 2010 and finances partial retirement and company pension schemes.

The fund may now be used to pay for projects aimed at securing jobs, retraining, or reducing working hours, IG BCE said, calling it a nationwide first in a large collective labour agreement.

Chemicals and pharmaceuticals together make up the third-largest industrial sector in Germany after automotive and mechanical engineering. The industry generated a turnover of around €220 billion in 2025, according to the German Chemical Industry Association (VCI).

Although the pharmaceutical industry is growing, the chemical industry has long been in the doldrums due to high energy costs, US tariffs, the weak German economy, and overcapacity on the global market. The Iran war has exacerbated the situation.