Faced with the perennial problem of boosting the appeal of the civil service – even if there has been a slight improvement – as well as an ageing workforce, Germany's federal administration is rolling out a series of initiatives to remedy the situation.

A "Compensation Structure Reform Act" entered into force on 1 January 2020, offering major changes to legislation that had not been recast since 1975.

While the compensation model, which is based on a career system with tiered advancement according to seniority, remains the same, provisions have been introduced that are expected to help address recruitment difficulties for certain professions:

• Early-career wage indices are harmonised and adjusted for all categories of personnel

• Monthly allowances linked to the performance of certain core functions (police, armed forces, intelligence services, data security) have received significant adjustments

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• Recruitment bonuses (Personalgewinnungsprämie) have been redefined. These are already awarded to new hires for professions where there is strong private-sector competition (e.g. the IT sector). Now, instead of monthly instalments, the bonus can be paid in a lump sum, in return for a commitment to remain in the civil service for up to four years (this period can be renewable twice, in which case the bonus is reduced by a third¹.

• A one-time bonus (capped at €3,000) will be paid to staff who volunteer to work shifts or be on call during one-off events (emergency response, securing international summits, etc.)

In terms of mobility, the new act increases expatriation allowances for officials performing their duties abroad. Domestically, it eases rules applicable to geographic separation².

• By offering a choice between reimbursement of removal costs or payment of a separation allowance (Trennungsgeld),

• By paying for a biweekly trip to the family's place of residence

The act puts an end to a persistent inequality under the general scheme, namely less favourable bonuses for children born before 1992 when calculating the retirement pension.

¹ The bonus is set at 50% of the difference between the base salary and the salary offered for an identical private-sector position. It may not, however, exceed 75% of the base salary.