What is tariff and how to calculate it

Collective wage

The collective wage is the wage negotiated between the employer and the union. It is stipulated in the collective agreement and describes the minimum salary that an employee can expect, adapted to his or her professional qualifications. In addition to the collectively agreed wages, the collective agreement also includes all rights and obligations that apply to the relationship between employer and employee. The collective wage or the collective agreement always applies until it is renegotiated by both parties, the employers' association and the trade union.


It is not common in all industries to pay according to the collective wage. The collective agreement only applies to those who are organized either as an employer in the employers' association and as an employee in the union. So if an employer does not belong to the employers' association, he does not have to adhere to the collective agreement. This means that he can pay other wages and does not have to comply with the collective wage. However, it must not fall below the legally stipulated minimum wage. This must not be undercut in the collective agreements.

Since not all companies belong to the employers' association, not all companies are bound by the collective bargaining agreements. The metal processing industry is an example. A company that does not belong to the employers 'association therefore does not have to adhere to the collective agreement that was negotiated by the employers' associations with IG Metall. This is particularly important for young professionals, but also for those who want to find out about their future salary. However, if the company is a member of the employers' association, then it must adhere to the collective bargaining requirements and the employees can assume a collective wage.

There are different types of collective agreements. The level of remuneration is determined in a collective wage agreement. This can be done in the collective wage agreement, collective wage agreement or in the collective wage agreement. Unlike the collective agreement, the area collective agreement only applies to a specific region. Usually, however, collective agreements with the negotiated collective wage apply nationwide. However, a distinction is also made here between the company collective agreement, which only applies to this company. There is also the general collective bargaining agreement, which basically regulates everything except remuneration. These include working hours, vacation and notice periods.

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