Co-determination on pay systems
Introducing or changing pay principles and methods requires the works council's agreement.
Rights & obligations · Works council · Germany
Built with the works council, not around it.
In Germany, the works council has strong co-determination rights on pay systems. The Directive adds a formal role in the joint pay assessment.
Three areas of involvement
Criteria and joint assessment
Worker representatives are involved in setting objective criteria and take part in the joint pay assessment.
Gross payroll lists
The works council can inspect gross payroll lists, usually via the works committee.
Legal position
As of 25 September 2026 · Status may change
Statements on BetrVG and EntgTranspG reflect current law and may change with the transposition act.
Step models and a regulated lower band zone are usually the easiest progression logic to agree with a works council: 03 Step model and 05 Hybrid with control point.
See the seven models