Wage increases can be implemented as a percentage-based adjustment, often called a "linear" increase. In this approach, higher wages increase more than lower ones.

Alternatively, wages can be raised by a uniform, fixed amount. Here, the total funds allocated for wage increases are equally distributed across all income levels. Everyone benefits equally, and lower incomes are not disadvantaged. Another compromise option combines these two methods, with part of the increase applied as a linear percentage and part as a fixed amount. In this scenario, the fixed portion is called the "base" increase.

Wage increases help offset rising prices and reward productivity. In times of budget constraints for publicly funded enterprises, it’s especially important to target wage increases where price hikes have hit the hardest — namely on lower and middle incomes. Fixed-rate increases are an effective way to achieve this.

Nevertheless, even public sector employers often refuse to adopt fixed-rate increases, preferring percentage-based adjustments — while redistributing taxpayer funds in favor of higher-paid employees in the process. Deutsche Welle is a case in point. In its offer from December 2024, DW proposed a 4,71 % increase effective June 1, 2025. With prices having risen by over 19% since 2020, a 4,71 % increase falls far short of addressing the rising cost of living. Furthermore, Deutsche Welle intends to apply this insufficient increase across all salaries and fees on a percentage basis and has, so far, rejected calls for a fixed-rate increase.

What are the reasons for this?

Myth 1: “A fixed-rate increase means that highly paid positions will remain unfilled due to low salaries.”

As the first salary scale table shows, this claim doesn’t stand up to closer scrutiny. Employees up to salary group II actually benefit more from a fixed-rate increase. Additionally, a fixed increase gives a greater boost to starting salaries than a percentage-based increase. That benefits skilled workers, who make up 1,062 of Deutsche Welle’s 1,797 permanent employees. The moderating effect on higher salaries only begins at well over €6,000 per month and unfolds gradually over time.

In general, external candidates are not hired at higher salary levels, so a fixed-rate increase also helps maintain more competitive starting salaries. The second table compares the effects of a fixed increase with those of a percentage-based increase, using Deutsche Welle’s December 6, 2024, offer as a reference point. According to ver.di DW’s calculations, the proposed 4,71% increase translates to a fixed amount of approximately €289.

For additional context, we’ve also included a table showing the (gross) salary increase based on our demand for a 10.5% increase. The impact on salaries and recruitment is consistent across these scenarios.

If open positions aren’t attracting qualified candidates, salary is only part of the picture. Even if compensation were the primary factor, wages would need to be raised by far more than the difference between a fixed-rate and percentage-based increase. In reality, the main deterrent for candidates is often the prospect of a temporary contract.

Which brings us to the next myth.

Myth 2: “A fixed salary increase will drive high-earning employees to leave Deutsche Welle.”

The reasons employees leave Deutsche Welle have little to do with whether salary increases are fixed-rate or percentage-based. Most often, they cite the instability of fixed-term contracts or the prospect of a more suitable position with another employer. Providing permanent, full-time roles, good working conditions, opportunities for advancement to higher pay scales, and non-tariff allowances would be far more effective in making Deutsche Welle an attractive employer than relying on percentage-based increases.

A major source of dissatisfaction at Deutsche Welle is the high proportion of insecure work arrangements. Employee-like freelancers and staffers on fixed-term contracts share a need for better long-term prospects. Freelancers also need stronger and more robust job protections. Ver.di aims to negotiate an agreement with DW that ensures reliable job security.

Moreover, the difference between a fixed-rate and percentage-based increase is negligible for medium and high salaries across much of the pay scale. This is particularly evident when looking at net income.

By way of comparison, we have also illustrated the outcome if our demand for a 10.5% total increase in salary volume is met.

Myth 3: "Deutsche Welle offers better pay for lower salary groups compared to other companies."

This myth is based on a 2019 report by Kienbaum Consultants International GmbH, which concluded that pay levels at certain broadcasting companies were higher than in the public sector, slightly above average compared to the commercial media landscape, and comparable to the broader media industry.

The Kienbaum report remains controversial. Even beyond that, much has changed since its publication. In 2023, DW finally managed to “catch up” with the public sector. The impact of the fixed-rate increase negotiated by ver.di became apparent in 2023, particularly in the lower salaries (as shown by the light blue line in the accompanying chart).

In 2024, the public sector collective wage agreement, which provided a combination of a percentage increase (5.5%), a base increase (€200), and a minimum increase (€340, BMI Press Release) — helped offset the skyrocketing costs for essential living expenses (energy, food, housing), especially for low- and mid-range incomes.

In contrast, the current offers from German broadcasting companies, including Deutsche Welle, fall significantly short of the public sector. If Deutsche Welle proceeds with a 4,71% linear increase, then lower salary groups, in particular, would fall behind both general salary trends and public sector wage development.

While higher salary groups would also be affected, the relative impact on high earners would be less pronounced, as shown on the chart (assuming a 4,71% linear increase with no fixed amount for 2024).

In 2024, the Kienbaum report no longer serves as a credible argument.

Myth 4: "Higher salary groups are more affected by price increases in relative terms."

The idea behind this myth is that inflation "devalues" money and that the balance between salary levels must be preserved. Additionally, it assumes that high earners, who have invested substantial time in their education, deserve to maintain their financial standing.

Apart from the fact that the majority of Deutsche Welle employees — across all salary levels — have invested considerable time in education and training, this attitude also reflects a problematic ethical stance. It implies that employees with lower incomes have less of a right to support a family on a single income, work part-time, and so forth.

In the real world, price increases in areas like housing, energy, and food affect everyone equally.

As a result, low earners spend a large portion of their net income on basic needs, whereas high earners retain a financial cushion after basic needs are met. Since 2020, the relative share of net income consumed by basic needs has risen sharply. For lower earners, even a 4,71% wage increase (red line) would make little difference.

However, a fixed-rate increase (green line) does provide some relief for the employees who are most affected by recent price hikes.

Myth 5: "We’re offering a one-time payment to ensure social equity."

Deutsche Welle’s offer from December 6, 2024, includes a 4,71% wage and fee increase effective June 1, 2025, along with a one-time payment of €1,750 / €2,000 (pro-rated for part-time employees). To put this into perspective, this one-time payment only serves to compensate employees for losses incurred during the “gap months” — the period between the expiration of the last wage agreement on June 30, 2024, and the proposed wage increase. In other words, Deutsche Welle could have simply raised wages effective July 1, 2024. By delaying the increase, DW also saves on pension contributions, as reduced earnings during the gap months result in lower pension payouts.

So is this a win for employees? Not really. One-time payments and fixed-rate increases are not comparable. One is temporary, while the other has a lasting impact. A one-time payment that might seem to be a gain for social equity across the pay scale dissipates the longer an employee remains at Deutsche Welle. Receiving an "extra €182" for eleven months (roughly equivalent to a one-time payment of €2,000) adds up to very little over a 20- or 30-year-career at Deutsche Welle. Anyone who hasn’t in the meantime moved into one of the highest pay groups, or who isn’t earning the highest freelance fees, will lose out. A one-time payment is a drop in the bucket compared to permanent, contractually secured salary and fee increases.

A fixed-rate increase is better for staffers and freelancers.