The Great IT Paycheck Showdown of 2025 Has Begun

With IT collective bargaining negotiations locked for November, the stage is set for a brutal fight over inflation, real wages, and a broken system. Here's what's actually at stake.

Mark your calendars: November 14, 2025. That’s the date the IT collective bargaining agreement (KV) negotiations kick off, and if the sentiment circulating among tech professionals is any indication, it’s less a negotiation and more a scheduled disappointment. The phrase making the rounds, roughly translating to “bite through it a bit longer until you’re disappointed”, perfectly captures the grim expectation. But beneath the cynicism lies a brewing storm over real wages, systemic flaws, and a question of whether the German IT sector can finally get a deal that actually matters.

It’s Not Just the Percentage, It’s the Broken Framework

The immediate demand seems simple enough: a raise that outpaces inflation. Many are arguing for a deal that not only covers the rising cost of living but also provides an actual increase to their IST-Gehalt (current salary), and they want it effective January 1, not the typical July 1. A mid-year raise, after all, is just a half-measure, a six-month bonus that fails to compound for the full year.

But the real frustration, the one that fuels the pessimism, runs deeper. The core issue isn’t the final percentage number, it’s the entire structure of the IT KV. As one insightful observer put it, any negotiation over a pure percentage is “nonsensical” as long as the underlying system remains flawed. The problems are threefold:

  1. The Salary Sum Trap: The KV is often tied to the total salary sum of a company, creating perverse incentives for employers to keep individual salaries low to manage the collective increase. It’s a system that can punish high performers.
  2. The Maze of Exceptions: The agreement is riddled with so many exceptions and special clauses that the headline percentage rarely reflects what an individual employee actually sees on their payslip.
  3. The July 1 Deadline: This recurring issue means that for half the year, employees are effectively working under last year’s terms, losing out on months of potential gains.

Until this framework is overhauled, any negotiated percentage is just window dressing on a structurally unsound building.

The Inflation Wildcard: What Retail Just Did

Adding a critical layer of complexity to the 2025 negotiations is a precedent set in a completely different sector: retail. Recent negotiations for the Handels-KV included a groundbreaking inflation clause. The agreement stipulates that if inflation averages 3% or more between October 2024 and September 2025, the entire 2026 agreement is void and must be renegotiated from scratch source.

This is a game-changer. It’s a dynamic, built-in protection against economic reality. Now, all eyes are on the IT sector. Will the unions secure a similar inflation-triggered clause? Or will IT professionals be locked into a fixed percentage for the next two years, watching their purchasing power erode if inflation spikes again? The lack of such a clause in past agreements is a major source of the current anxiety.

The Human Cost and The Business Dilemma

This isn’t just an academic exercise in labor economics. The impact is real and immediate. Stories are already emerging of IT professionals receiving 0% raises this year, with job searches already underway in a market that’s far from the employee-friendly paradise it once was. The “quiet quitting” is becoming a loud exodus for those who feel undervalued.

For businesses, this creates a brutal Catch-22. The upcoming KV negotiations are a direct threat to cost structures and profitability. Yet, failing to offer a competitive deal risks a brain drain of their most valuable talent. In a sector where skills are scarce and competition is global, an unattractive collective agreement could make German companies a last resort for top IT minds. Even the unions face a credibility crisis, another “lowball” deal could push more members to resign, questioning the very value of their membership.

The Stakes of November 14

The November 14 negotiation date is more than a calendar entry, it’s a referendum on the value of IT work in Germany’s economic engine. The outcome will be a clear signal. A weak, percentage-only deal will confirm the fears of many: that the system is designed to underpay and that collective bargaining has lost its teeth. A strong deal, one that tackles inflation, the July 1 start date, and the structural issues, could restore faith and set a new standard for the industry.

For now, the waiting continues. But make no mistake, the positions are being drawn, and the Great IT Paycheck Showdown of 2025 is already underway. The only question is whether the final result will be a victory for real wages or just another chapter in a long story of disappointment.

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