Overview: TVöD 2026 — a choice between more money or more vacation
From 2026 the collective agreement for the public service (TVöD) introduces new flexible options aimed at responding to staff shortages in federal and municipal employers. Employees can choose measures that either increase short-term earnings or create options for longer paid time off. The changes are voluntary and come with specific rules, supplements and exclusions.
Key takeaways at a glance
- Voluntary temporary increase of working time up to 42 hours per week for a maximum of 18 months (extendable), with pay supplements.
- Parts of the annual special payment can be converted into up to three “exchange days” to finance longer absences.
- Second stage of salary increases takes effect on 1 May 2026, adding to earlier increases so the total is 5.8% over 27 months.
- Both employer and employee must agree to working-time increases; certain care sectors are excluded from the payment-to-days conversion.
- From 2027, employees will get an extra vacation day in addition to these changes.
Working-time increase: how the “more money” option works
One option under TVöD 2026 lets employees voluntarily increase their regular working time up to 42 hours per week for a limited period to earn higher pay. This is designed as a temporary tool to keep operations running during peak demand and to make extra income attractive.
Conditions and duration
The increased working time is allowed for up to 18 months and may be extendable by agreement. Participation is voluntary and requires consent from both the employee and the employer. It is not an automatic or mandatory change to your contract unless you and your employer both agree.
These supplements are intended to make longer temporary working hours financially worthwhile. Employees should check how supplements are calculated in their specific workplace and whether other allowances apply.
Pay supplements by pay groups
To compensate for the additional hours, employees receive a wage supplement on top of their hourly pay. The supplements differ by pay group:
| Pay groups (TVöD) | Supplement on hourly wage |
|---|---|
| E1 – E9b | 25% |
| E9c – E15 | 10% |
| Note | Participation requires agreement from both sides and follows specific local arrangements. |
Converting special pay into time off: the “more vacation” option
As a second option employees can convert parts of their annual special payment into paid days off. The scheme allows a high share—around 85–90 percent of the relevant part of the annual special payment—to be exchanged for up to three “exchange days” (“Tauschtage”). This creates flexible opportunities to take longer periods of paid leave if these days and accumulated overtime are banked over time.
How conversion and “Tauschtage” work
Employees can choose to convert a portion of their Jahressonderzahlung (annual special payment) into one to three paid days. By saving parts of this payment over several years—and possibly combining with accrued overtime—workers can build enough paid time to take extended leave such as a sabbatical or several months off.
The conversion is voluntary and subject to conditions set out in the collective agreement and by local employers. Employees should confirm eligibility and rules with their HR department or works council before planning long absences.
Exclusions and limits
Not all workplaces can use the conversion: hospitals, nursing homes and certain care or support facilities are excluded from the conversion into exchange days. This reflects operational necessities in care settings where staffing levels are critical.
Salary increases, timing and financial effects
Independent from the flexibility options, the TVöD pay scale sees staged increases: 3.0% from April 2025 and a second stage of 2.8% from 1 May 2026. Together these steps amount to 5.8% over 27 months, with minimum increases of roughly 100–110 euros for many employees.
What the increases mean in practice
The combined 5.8% raise boosts gross salaries. For example, an employee in pay group EG 5 at step 4 sees a gross increase of about 208 euros. However, rising social security contributions and tax effects can reduce the net benefit, and for some employees the take-home pay may be similar to or even less than expected after deductions.
When weighing the options, consider not only gross increases but net effects, social contributions, potential tax changes and how a temporary increase in working time or converting pay into days affects pensionable earnings and future benefits.
TV-L context and an extra holiday day
The tariff round for the federal states (TV-L) ran in parallel with similar demands and offers: unions sought larger increases; employers negotiated offers over multiple months. An agreement providing 5.8% in staged increases was reached in February 2026 in that round as well. Additionally, from 2027 employees will receive one extra vacation day.
Deciding: tips to choose more money or more vacation
Whether to opt for more hours with supplements or to convert pay into exchange days depends on personal priorities and life circumstances. Both options are voluntary and require careful planning.
Factors to consider
- Your short-term need for cash versus your long-term need for time off (e.g., family care, study, sabbatical).
- Net income effects after taxes and social contributions — calculate take-home pay.
- Impact on working time, work-life balance and health if you choose extra hours.
- Whether your workplace allows conversion (note exclusions for hospitals and care homes).
- How accrued overtime and converted payments can be combined to build longer leave.
Talk to HR, your works council or union representatives to get clear calculations and the exact local rules. Make sure any agreement is documented and understands whether changes affect pension contributions or other long-term entitlements.
Practical next steps and closing advice
If you are considering one of the TVöD 2026 options, follow these practical steps to decide and act:
- Request a written explanation from HR about how the working-time increase or payment conversion would work for your position.
- Ask for net-pay examples that include tax and social-security deductions.
- Check whether your workplace is eligible for the payment-to-days conversion (note the exclusions in care settings).
- Consult your works council or union for guidance and model agreements.
- Document any agreement in writing, including duration, supplements, and how converted days are stored and used.
These new TVöD 2026 options can open up real flexibility: for some, the supplements make extra work worthwhile; for others, converting pay into exchange days enables meaningful breaks or sabbaticals. Because arrangements differ locally and affect long-term finances, take time to compare the monetary and personal trade-offs before deciding.
If you need help with calculations or understanding impacts on taxes, social security and pensions, seek personalized advice from your HR department, payroll office or union representatives.
