April 17, 2018 / 9:57 PM / a year ago

Pay hikes will cost German local governments about 7.3 billion euros - group

BERLIN (Reuters) - A wage agreement reached with German unions for over 2 million public sector workers will increase costs for local governments by about 7.3 billion euros (6.3 billion pounds), an association representing those governments said in a statement late on Tuesday.

Reinhard Sager, president of the DLK association of rural districts, said the deal would be difficult for communities to bear, but welcomed the fact that it would last for 30 months instead of a year.

The agreement, which must still be approved by the unions, calls for pay hikes of 7.5 percent to come in three steps through August 2020, including one-off payments of 250 euros for lower-paid workers, the group said.

Reporting by Andrea Shalal; Editing by James Dalgleish

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