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Salary Increase After the First Year: Reasons and Arguments

When a salary increase after your first year is justified, which arguments persuade, and what rights you have to information about pay.
Berufseinsteigerin mit Mitarbeiterausweis am ersten Arbeitstag

Contents

After your first year at work, it is natural to ask whether your salary is keeping pace. Many career starters wait for their employer to raise the subject. That rarely happens. If you prepare the conversation and can name a concrete reason, your chances are much better. This guide explains which reasons count, which arguments persuade and what rights to information you have.

Short answer: A salary increase after your first year is not an automatic entitlement. There is a valid reason to raise the subject if your tasks or results have changed, or if a collective agreement (Tarifvertrag) provides for a step increase. For information on pay for comparable work, § 10 EntgTranspG (Pay Transparency Act) applies, accessed October 2026.

The Key Points

  • A work anniversary alone is not a reason. The reason has to lie in your work.
  • Good reasons include more responsibility, new tasks, measurable results or a step in a collective agreement.
  • Arguments should refer to facts, not to personal wishes or costs.
  • A no in the first conversation is rarely final. Ask for the reasons and arrange a date for a review.
  • If you want to know how comparable work is paid, you may be able to request information (§ 10 EntgTranspG).

What Counts as a Reason

A reason is an event that has visibly changed your performance or your market value. What matters is not only what you did, but also how it affected the team or customers. The table below shows typical reasons and how to document them.

ReasonWhy it countsExample
More responsibilityYou take on tasks that go beyond your job descriptionYou lead a project or look after new clients
Measurable resultsFigures show that you meet or exceed your targetsA project was completed earlier than planned
Additional qualificationYou have completed further training relevant to your workA certificate or a part-time course
Market comparisonComparable positions are paid moreJob advertisements that state a salary
Collective agreement stepThe collective agreement provides for a step increase after a period of experienceA step increase after one year

For a market comparison, the overview of starting salaries after graduation can help you place your own figures.

When a Collective Agreement Decides

In the public sector and in many companies bound by a collective agreement, employees move up according to fixed experience levels. Then the increase is often not negotiable but follows a set plan. This is an advantage for you, because you do not have to fight for the timing. Instead, you can check whether it is applied on time. First, check whether your collective agreement provides for a step increase, from when it applies, and whether your employer applies it correctly. The glossary entry on collective agreements explains the basics.

Is There a Right to an Annual Increase?

Usually not. There is no statutory entitlement to an annual salary increase. Entitlements can arise from a collective agreement, a works agreement (Betriebsvereinbarung) or an explicit promise. The principle of equal treatment (Gleichbehandlungsgrundsatz) also plays a role if comparable employees are paid differently without a factual reason. Especially in the first year, it is worth agreeing on expectations early. A clear goal for the next round creates a shared basis for the conversation.

Arguments That Persuade

Convincing arguments are ones that can be verified. The statement “I earn too little” does little good, whereas a list of concrete achievements does a lot. Three examples show what this can look like:

  • You took over a project that an experienced colleague had led until then, and completed it on schedule.
  • You changed a process so that the processing time for enquiries dropped noticeably.
  • You support new colleagues during their onboarding and so relieve the team.

It is important to record your successes with dates and their impact. That way you can document calmly in the conversation what has changed. Weaker arguments are references to private living costs, derogatory comparisons with colleagues, or threats. They distract from the core point, which is the value of your work.

How to Prepare for the Conversation

Good preparation often decides how the conversation goes. Note your successes from the last twelve months and order them by impact. Find out what is paid for comparable work, for example from job advertisements that state a salary. Then set a concrete figure or a realistic range. Also consider which other points matter to you, such as further training, home office or additional days of leave. A conversation that covers several points gives your employer more room to manoeuvre.

Right to Information on Pay: What You Are Entitled To

Under § 10 EntgTranspG (Pay Transparency Act), employees have an individual right to information. You can use it to ask what the average monthly gross pay is for a comparable job, and you can ask about up to two individual pay components. To do so, you must name a comparator job that is the same or of equal value. The request must be made in text form, for example by email.

A repeat request is generally only possible two years after the last one. An earlier request is only possible if the circumstances have changed significantly and you can show this. Whether your employer is obliged to provide information depends, among other things, on the size of the company. The details are set out in the law, so it is worth reading it before you rely on it. Use the information as a basis for the conversation rather than as an accusation. That keeps the conversation factual.

How to Handle a No

A no in the first conversation is rarely the final word. Ask for the reasons and which goals you should reach so that it works next time. Agree on a specific date for a review and put the commitment in writing. If the budget is tight at the moment, other points can often be negotiated. These include further training, an adjustment of working hours or additional days of leave. Note the reasons and goals you were given so that you can pick them up in the next conversation.

Frequently Asked Questions

When is the right time for the conversation?

Annual review meetings or the time after you have successfully completed a project are often suitable. Avoid conversations in a rush or right after a mistake. A date in the calendar also shows that you are serious about it.

May I talk to colleagues about salaries?

Usually yes. Comparing salaries with colleagues is a common orientation if you stay factual. Some employers, however, have internal rules or confidentiality clauses, which you should check in your employment contract.

Do I have to disclose my current salary?

No, you do not have to justify your demand with your current salary. What matters is what you deliver and what the market pays for your work. The justification should always focus on your work.

What if my contract is fixed-term?

You can also ask for a salary increase with a fixed-term contract. It is important to know the term, because it affects your room for negotiation. Plan the conversation in good time before a possible extension.

How often may I ask?

There is no fixed rule. In practice, one conversation per year is normal, provided your tasks do not change significantly. After a major change in responsibility, a new conversation can make sense earlier.

How to Proceed Now

  1. Check whether a collective agreement or a works agreement provides for a step increase.
  2. Collect your successes from the last twelve months and back them up with figures or examples.
  3. Arrange a meeting in writing and set your demand as a range.
  4. Put the result in writing after the conversation, even if the answer was no.

Related Articles

Sources: Pay Transparency Act (EntgTranspG), § 10, accessed October 2026, Collective Agreements Act (TVG), § 1, accessed October 2026

Stand: October 2026. This guide is general information and not individual advice.

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