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Collective Bargaining Round for Temporary Work Inflation Compensation Bonuses in Temporary Work

In three sectors, temporary workers will receive an inflation adjustment bonus (IAP) this year, paid out in monthly installments. The exact entitlement depends on the sector, the length of service with the employer, and the duration of the assignment.

1000 Leihbeschäftigte demonstrieren für Inflationsausgleichsprämie in München

16 June 2023 16 June 2023 |
Updated on 27 May 2024 27 May 2024


Temporary agency workers will also receive an inflation adjustment bonus (IAP). IG Metall secured this provision during the 2023 collective bargaining round for temporary agency work. Temporary workers employed in the metal and electrical industries, as well as in the textile and apparel industries, have been receiving the IAP since January. The details of the payment have now also been finalized for temporary workers assigned to the wood and plastics industries.
 

Here’s how much money is available

The amount of the IAP varies depending on the industry in which the worker is assigned. It is paid out in several installments throughout the year. Part-time employees receive a pro-rated portion of the IAP.

  • Metal and electrical industry: A total of 2,300 euros net, payable monthly starting in January 2024. 300 euros in January, 200 euros each month from February through November 2024
  • Textile and apparel industry: A total of 1,150 euros net, payable monthly starting in January 2024. 150 euros in January, and 100 euros each month from February through November 2024
  • Wood and plastics industry: A total of 1,764 euros net, payable monthly from June 2024 through November 2024. 294 euros each

 

Here are the eligibility requirements

for payment:

  • 5 months of employment with the staffing agency and
  • 1 month of assignmentat a company in the respective industry,

as of the last day of the pay period.

This eligibility requirement always applies to the respective payment month. This means: A temporary employee who begins working in an industry in mid-January is not yet eligible in January (less than 1 month of assignment time). By the end of February, she will have more than 1 month of assignment time and will be eligible for the February payment.

 

Furthermore:

  • The exact amount of the monthly payment is calculated proportionally based on the assignment time for that month (e.g., halved if the assignment lasts only half a month).
  • For temporary workers who have already received an IAP (for example, due to company policies), this amount may be credited.
  • If the host company paid its permanent employees an IAP that is lower than the IAP for temporary agency workers, the latter may be capped.

 

If you have any questions or issues regarding the inflation adjustment bonus, IG Metall members cancontacttheirlocal office.

 

Thousands of temporary workers take action nationwide

During the 2023 collective bargaining round on temporary work, thousands of temporary workers across the country staged protests to press for the IAP, with the solidarity and support of permanent employees. A total of 1,000 temporary workers attended the demonstration in Munich alone before negotiations began on June 16, 2023. 

The talks and negotiations had been ongoing for half a year prior to that. After IG Metall secured an inflation adjustment bonus for permanent employees in the metal and electrical industries at the end of 2022, it demanded that the IAP extend the same benefit to temporary workers as well. But the employers blocked the proposal.


Plus 15 Percent on Top of the Temporary Agency Worker Wage Scale 

In addition to the IAP, the 2023 collective bargaining agreement also provides for higher pay starting from the first day of assignment: The first tier of industry surcharges— a 15 percent increase on the temporary agency work rate —is payable from the first day of assignment, rather than after six weeks as was previously the case.

Collective Bargaining - Temporary Work
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