FAQ
Frequently Asked Questions (FAQ)
Here we collect information about IG Metall and its collective agreements. Although the information has been carefully compiled, it may still contain errors. Always consult a tariff expert or the official collective bargaining agreement (CBA).
What do the collective agreements regulate?
IG Metall's collective agreements regulate working conditions and salaries for millions of employees in Germany.
Which industries are covered?
- Metal and Electrical Industry: The largest and best-known tariff sector.
- Wood and Plastics Processing Industry: Includes furniture manufacturers, sawmills, and more.
- Textile and Clothing Industry: Regulates conditions for a traditional industry.
For detailed information, please visit the official IG Metall website.
Comprehensive FAQ: Compensation, ERA & Collective Bargaining Knowledge
This section answers all questions about your salary, the ERA system, and IG Metall benefits.
Section 1: Basics of Compensation & Composition
1. How is my monthly compensation structured?
Your compensation typically consists of the base salary (based on your ERA pay grade), a performance bonus (variable, averaging approximately 14–15%), and where applicable, difficulty allowances or shift premiums.
2. What is the ERA performance bonus and how is it calculated?
The performance bonus (Leistungszulage) honors your individual performance. It is usually assessed annually in a conversation with your supervisor (criteria often include: quality, efficiency, commitment). According to the collective agreement, the average in the company should typically be around 14% to 15% of the base salary.
3. Can my performance bonus be reduced?
In principle, yes, if your performance demonstrably declines. However, this cannot happen arbitrarily. As a rule, there must be a prior conversation where goals are set for you.
4. What is the difference between T-ZUG A and T-ZUG B?
T-ZUG A: Amounts to 27.5% of your monthly gross base salary. Certain groups (parents, caregivers, shift workers) can convert this portion into 8 free days.
T-ZUG B: (Also called "additional amount" - "Zusatzbetrag") Is a fixed cash amount for everyone that is independent of income (e.g., approximately 18.5% of the reference salary, increasing to 26.5% from 2026 onwards). It cannot be converted into time.
5. Do I receive asset-building benefits (VWL / AVWL)?
Yes. The collective agreement provides for "age provision-related benefits" (Altersvorsorgewirksame Leistungen, AVWL). The employer pays €319.08 per year (€26.59 monthly) into a contract (e.g., MetallRente or Riester). Apprentices receive €159.48 annually.
6. What is transformation money (T-Geld)?
Transformation money (T-Geld) is an annual special payment, often paid out in February. It amounts to 18.4% of one month's salary. It serves as an income building block or can be used in companies for employment security (working time reduction).
7. When are vacation pay and Christmas bonuses paid?
- Vacation Pay: In the metal and electrical industry, it is generally 50 percent of an average monthly salary according to the IG Metall collective agreement. With 30 days of vacation, this corresponds to approximately 70 percent of a monthly salary. It is an additional vacation payment. Usually paid in June.
- Christmas Bonus (Weihnachtsgeld): The entitlement increases depending on the length of service. After three years of service, the special payment generally reaches 55 percent of a monthly salary. Usually paid in November.
8. What is the "transformation component"?
This is often a synonym for T-Geld (see question 6) or special company regulations that use one-time payments to finance work time reduction during transformation challenges (e.g., transition to e-mobility).
9. Is there automatic inflation adjustment (index wage)?
No. Unlike countries such as Belgium, German collective agreements do not have automatic mechanisms. Wage increases must be renegotiated by IG Metall in each round of bargaining and, if necessary, must be struck for.
10. Can my boss pay me more than what the collective agreement specifies? ("Favorability principle" - "Günstigkeitsprinzip")
Yes. The collective agreement is a minimum condition. The employer can always improve your conditions (e.g., non-tariff allowances). They can only not worsen your conditions.
Section 2: The ERA System (Pay Grade Classification)
11. What does "ERA" mean?
ERA stands for Entgelt-Rahmen-Abkommen (Compensation Framework Agreement). It is the system that regulates how jobs are evaluated and paid. It applies equally to workers and employees.
12. How does ERA pay grade classification work?
It is not you who is evaluated, but your work task. Based on a job description, it is determined what requirements (knowledge, thinking, scope of action, employee management) the position has. This results in a point score that leads to a pay grade (Entgeltgruppe, EG).
13. Does my academic degree determine my pay grade?
Not directly. It depends on what the position requires. If you have a master's degree but work in a position that only requires a 3-year apprenticeship, you will only be paid according to the apprenticeship position.
14. What can I do if I disagree with my pay grade classification?
You have the right to file a complaint. You can request a review from the works council ("Eingruppierungsüberprüfung" - pay grade review). If the works council reaches the same conclusion as you, they must negotiate with the employer.
15. What are "development levels" or "step increments"?
In some tariff regions (e.g., Bavaria, Baden-Württemberg), there are steps within a pay grade (e.g., main level after x months). This means your salary automatically increases when you have worked in the position for a certain period until you reach the target salary of the grade.
16. How are master craftsmen and technicians classified?
Master craftsmen and technicians are often in the middle to upper range of the pay table. Depending on responsibility (personnel responsibility, budget), they often fall between the skilled worker level and the engineer level.
17. What does "downgrading" mean?
If your employer assigns you a new, less demanding task, you could theoretically fall into a lower pay grade. This is legally difficult and is often protected by grandfathering clauses or modification termination protection.
Section 3: Non-Tariff Employees (AT) & Special Cases
18. When am I "non-tariff" (AT)?
You are AT if your area of responsibility and your authority clearly exceed the highest pay grade (e.g., EG 12 in Bavaria or EG 14 in North Rhine-Westphalia). AT is not a "status" you choose, but depends on the position.
19. What is the "distance requirement" for AT contracts?
For an AT contract to be valid, the salary must have a certain distance from the highest pay grade. Often it is regulated that the AT salary must be approximately 30% to 35% above the highest pay grade (including all tariff allowances) so that the waiver of tariff protection is justified.
20. Do tariff increases also apply to non-tariff employees (AT)?
Not automatically. AT contracts are negotiable. However, many companies orient themselves to the collective bargaining results and pass the percentage increase on to AT employees to maintain the distance.
21. What is a "company collective agreement"?
Some large companies (e.g., Volkswagen) are not bound by the sector-wide collective agreement but have negotiated their own company collective agreement with IG Metall. The tables and rules there may differ from the sector agreement (often even somewhat higher).
22. What is an "OT membership" of companies?
There are employers who are members of the employers' association but operate "without tariff binding" (Ohne Tarifbindung, OT). There, the collective agreement does not automatically apply unless it is explicitly agreed in the employment contract.
Section 4: Working Hours, Vacation & Leave
23. What is the 35-hour week?
The standard in the West German metal and electrical industry. Full-time here means 35 hours of work per week.
24. Can I work 40 hours?
Yes, if the company has a need and you agree. Approximately 13% to 18% of the workforce (quota) may have 40-hour contracts. You then receive proportionally more salary (calculated linearly).
25. Do I have a right to part-time work?
You have a legal right to part-time work. The collective agreement supplements this, e.g., through "reduced full-time" (right to return to full-time after a phase of up to 28 hours per week).
26. How many vacation days do I have?
30 working days per year (on a 5-day week).
27. Do I get special leave for moving or weddings?
Yes, paid leave is provided according to the master collective agreement for: Own wedding (1-2 days), birth of own child (1 day), death of a close relative (2 days), moving (often 1 day for company-related reasons).
28. What applies to home office / remote work?
There is a right to "discussion." The employer must review your request and cannot refuse it without good reason. Details are usually regulated by a works agreement.
29. What are flexible time accounts?
Overtime and undertime are collected on a time account. The collective agreement or works agreements regulate how high this account can be (e.g., +/- 100 hours) and when it must be paid out or taken as time off.
Section 5: Allowances & Difficult Working Conditions
30. What are difficulty allowances?
For work under particularly difficult conditions (dirt, noise, heat, gases, protective clothing), the collective agreement provides extra allowances if these burdens are not already taken into account in the ERA classification.
31. How high are shift premiums?
- Night shift: Usually 25% to 30% (often tax-free).
- Late shift: Usually from about 15%.
- Sundays and public holidays: 50% to 150% premium.
32. Is break time paid?
Normally not. Exception: In certain shift models (e.g., assembly line work), there is the "Steinkühler break" (5 minutes per hour) that is paid.
33. What is overtime?
Work that exceeds the agreed weekly working hours. This is subject to overtime surcharges (usually 25% for the first hours, then often 50%) if it is not offset by time off.
Section 6: Apprentices, Students & Career Entry
34. What do apprentices earn?
It typically starts at over €1,050 in the first year and increases to approximately €1,300 - €1,400 by the fourth year.
35. Do apprentices also get Christmas bonuses?
Yes, apprentices also receive vacation pay and Christmas bonuses as well as T-ZUG and T-Geld (usually pro-rata or as a flat rate).
36. Are apprentices hired permanently?
Yes, the collective agreement regulates basic employment for 12 months after passing the examination, often even permanently.
37. What do dual students earn?
Dual students usually have their own collective agreements or works agreements. They typically receive compensation oriented towards apprentice compensation, often plus allowances for study materials.
38. Are internships paid?
Required internships do not have to be paid by law, but in collectively-bound companies there are often voluntary payments. Voluntary internships usually must be paid with minimum wage or tariff rates for interns.
39. What is the starting salary after graduation?
Bachelor's degree holders often start in pay grade groups that correspond (depending on region) to annual salaries of approximately €55,000 to €65,000 (including allowances). Master's degree holders are often one step higher.
Section 7: Illness, Termination & Security
40. How long is my salary paid during illness?
Full salary continuation by the employer for 6 weeks. Afterwards, sick pay from the health insurance fund.
41. What is earnings protection for older workers?
From a certain age (e.g., 54 years) and long length of service, your compensation cannot be reduced even if your performance declines ("job security" and earnings protection).
42. What termination periods apply?
For employees: 4 weeks to the 15th or end of month. For employers, the period extends depending on length of service to up to 7 months.
43. What happens if the company's financial situation is difficult?
There are "opening clauses" and the "Pforzheim Agreement." In crises, companies can (with IG Metall approval) defer or reduce payments such as Christmas bonuses or T-ZUG to avoid layoffs ("restructuring collective agreement").
44. What is short-time work (Kurzarbeit)?
If there is no work available, the company (with works council) can register for short-time work. The employment agency pays 60/67% of net salary. In the metal industry, many employers supplement this money by collective agreement or voluntarily (e.g., to 80% or 90%).
Section 8: Membership & Pensions
45. What does IG Metall membership bring me regarding salary?
Only members have a legal entitlement to collective agreement payments. If the employer suddenly pays less or leaves the association, members retain their entitlements.
46. What is MetallRente?
A pension scheme for occupational old-age provision. Employees can contribute parts of their gross salary (salary conversion) in a tax-advantaged manner to MetallRente.
47. Can I deduct IG Metall membership fees?
Yes, 100% as business expenses in your tax return. (Fee: 1% of gross salary).
48. Is strike pay provided?
Yes. Employers often continue payment during warning strikes (briefly). During enforcement strikes (indefinite), IG Metall pays members approximately 2/3 of gross compensation as tax-free strike pay.
49. Does IG Metall offer legal protection?
Yes, members receive free labor and social law protection (e.g., lawsuits against termination or incorrect pension decisions).
50. What is "jubilee status" in the union?
Long-term members (25, 40, 50, 60 years) are honored and often receive small gifts or anniversary benefits from the union, not to be confused with service anniversaries at the company.