The public sector is attractive for graduates because pay follows fixed collective rules and offers security. Anyone starting there should understand the logic: your employment contract refers to a collective agreement, and that agreement sets your pay grade, your step and how steps increase. This guide explains the TVöD (collective agreement for federal and municipal staff) and the TV-L (collective agreement for the Länder) step by step.
Short answer: The TVöD applies to staff of the federal government and municipalities, the TV-L to the German federal states (Länder). Your pay grade (Entgeltgruppe) depends on the duties in the grading criteria, not on your degree alone. Within a pay grade you move through six experience steps; starting in step 1, the waiting times are one, two, three, four and five years (as of October 2026).
Key points at a glance
- The TVöD covers federal and municipal employees, the TV-L covers the federal states. Your employment contract states which one applies.
- Your pay grade follows the grading criteria of the pay scheme (Entgeltordnung), not your degree alone.
- Steps increase after fixed periods. From step 1 to step 2 takes one year, and the periods get longer afterwards.
- Supplementary pension insurance usually runs through the VBL or a similar fund. Check this in your contract.
- A probation period is usually agreed. During it, section 622 (3) BGB sets a notice period of two weeks, unless the collective agreement says otherwise.
TVöD or TV-L: which agreement applies to me?
The TVöD (Tarifvertrag für den öffentlichen Dienst) applies to federal and municipal employees. The TV-L (Tarifvertrag der Länder) applies to employees of the federal states, for example at state authorities or state enterprises. Universities, schools and the police are organised differently depending on the state, so check your contract.
The distinction matters because pay tables and some rules differ between the two agreements. When you look at a job, first check which employer it is and which agreement applies there.
How are you graded?
Your pay grade (Entgeltgruppe) determines your basic pay. It follows the grading criteria of the pay scheme and the tasks you actually perform. A university degree is often a requirement for certain grades, but it does not decide the grading alone. A post filled with a master’s degree is therefore not automatically placed in the highest grade.
Ask for the intended pay grade and the grading criteria when you are offered the post. This avoids surprises at the start. A more detailed guide is available in the German article Einstieg im öffentlichen Dienst: E 13 oder A 13? (in German).
How do the pay steps work?
Each pay grade has experience steps. You usually start in step 1. Relevant prior experience can lead to a higher step, as the collective agreement provides. Steps increase automatically after fixed periods, and periods without pay generally extend the waiting time.
| Step | Time in previous step | Assumption: start on 1 January 2027 |
|---|---|---|
| Step 2 | 1 year | 1 January 2028 |
| Step 3 | 2 years | 1 January 2030 |
| Step 4 | 3 years | 1 January 2033 |
| Step 5 | 4 years | 1 January 2037 |
| Step 6 | 5 years | 1 January 2042 |
Assumption: you start at age 25 in step 1. At 26 you reach step 2, at 28 step 3 and at 31 step 4. Step 5 follows four years later, at 35. Such a path helps you estimate when the next step increases fall due for your financial planning.
The waiting times come from the published text of the collective agreement on oeffentlichen-dienst.de (as of October 2026). The table shows progression without interruptions. Your actual dates depend on your start and any breaks. The current pay tables are published by the bargaining parties, namely the Vereinigung der kommunalen Arbeitgeberverbände for the TVöD and the Tarifgemeinschaft deutscher Länder for the TV-L.
What applies during probation and to termination?
The collective agreement provides for a probation period, whose length is stated in your contract. During probation, section 622 (3) BGB sets a notice period of two weeks, unless the collective agreement says otherwise. After probation, the agreed notice periods apply, which are usually longer than for short employment relationships.
In the public sector, probation and notice periods can deviate by collective agreement. Check the current version of the agreement that applies to your employer.
What about retirement provision?
Public-sector employees are usually covered by supplementary pension insurance (Zusatzversorgung), which tops up the state pension. This usually runs through the VBL or another supplementary pension fund. Employers and employees pay contributions together, and the collective agreement sets the split.
When you start, check which supplementary scheme applies and how your entitlements carry over if you change employer. This is a central point in the public sector, because moves between employers often link to these entitlements.
Your employer may also offer further retirement options, such as salary sacrifice (Entgeltumwandlung). These affect your gross pay, social insurance contributions and later benefits. Have the consequences explained in writing before you decide, as with other extra benefits.
Frequently asked questions
Do I have to become a civil servant when I work in the public sector?
No. Many posts are filled as contract employment. Civil-servant status exists only for certain careers and employers. The German article on probationary civil service (Verbeamtung auf Probe) explains the route in detail.
Can I start in a higher step because of work experience?
Yes, if the collective agreement allows it. The experience must be relevant to the job and generally has to be documented. Ask for the classification before you sign.
Is there a guarantee of a follow-on contract?
There is no general guarantee. Fixed-term contracts are also possible in the public sector, and the rules follow fixed-term employment law, while universities apply the Wissenschaftszeitvertragsgesetz (WissZeitVG). Check the term and the reason in your contract.
Who can help with questions about grading?
Your employer’s HR department is the first contact. If something stays unclear, the works council or staff council (Personalrat) can also advise. Have grading decisions confirmed in writing.
Next steps
- Check your contract for the applicable agreement, TVöD or TV-L, and for any deviations.
- Ask for the intended pay grade and the grading criteria before you sign.
- Note your relevant experience and ask for the step classification in writing.
- Put the step increases in your calendar and clarify your supplementary pension with HR.
Related guides
- Civil Servant Health Aid: Rates and How It Works
- Health Insurance After the Trainee Period: What Comes Next
- Contribution Assessment Base 2026: Ceiling and Floor
- PKV Expectancy Cover: Small and Large Options
Sources: TVöD, pay steps and waiting times, published text on oeffentlichen-dienst.de (as of October 2026, in German); Section 622 BGB, notice periods (retrieved October 2026, in German).
Last updated: October 2026. This guide is general information, not individual advice.
