2025 Collective Bargaining Round for the Hat Industry Higher Wages and Improved Partial Retirement Arrangements in the Hat Industry

In the hat industry in Bavaria and the Allgäu region, employees’ salaries will increase in two stages by 2 percent and 2.9 percent. They will also receive a one-time payment. This was agreed upon by IG Metall Bavaria and the employers’ associations of the hat industry. In addition, the collective bargaining agreement improves the industry-standard partial retirement program.

More Money – The Details

• July 2025: One-time gross payment of 275 euros; apprentices receive 137.50 euros gross
• August 2025: 2.0 percent pay increase —at least 60 euros or at least 0.37 euros more per hour; trainees: 25 euros
• October 2026: 2.9 percent pay increase, at least 80 euros or at least 0.50 euros more per hour; trainees: 35 euros

Part-time employees will receive the one-time payment on a pro-rata basis—in proportion to their contractual working hours relative to the full-time working hours specified in the collective agreement. A different payment method for the one-time payment may be agreed upon through a company agreement.

Vacation pay will increase by 2.0 percent in 2025, in line with wage growth, and by 2.9 percent in 2026.

The collective bargaining agreement may be terminated no earlier than May 31, 2027.

Improved Partial Retirement

The collective bargaining agreement’s partial retirement program will be extended through the end of May 2027 and improved: The employer’s supplement to the partial retirement pay will increase from 750 to 775 euros per month starting in August 2025, and to 800 euros per month starting in October 2026.

The collective bargaining agreement applies nationwide to the approximately 1,000 employees covered by the agreement in the hat industry in Bavaria and the Allgäu region.