Pay Deal Reached in Retail Sector, Bringing Five Percent More

Retail workers in the German state of Hesse will receive five percent more pay under a new agreement between the Hessen Retail Association and the Verdi union.

The settlement covers a 25-month period. Employees will receive a 3% increase from July 1, 2026, followed by another 2% increase from April 1, 2027. The agreement also raises the sector’s collectively bargained minimum wage.

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There is still no sign of an improvement in consumer sentiment.

Nico Lehm, chairman of Verdi’s collective bargaining commission in Hesse, said consumer sentiment was still not showing signs of improvement. “That is why it is so important that Hesse’s retail sector gains planning certainty through today’s agreement, so that businesses can secure their continued existence together with their employees,” he said, according to a statement from the retail association.

Verdi negotiator Marcel Schäuble said the union was satisfied with the deal because the lower pay groups would receive larger increases. Around 250,000 retail employees in Hesse are affected.

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That is why it is so important that Hesse’s retail sector gains planning certainty through today’s agreement, so that businesses can secure their continued existence together with their employees.