Integrated Company Report 2018

Our remuneration system

The current remuneration system, which was negotiated by GIZ and the trade union ver.di, entered into force on 1 January 2015. It applies to all Germany-based staff whose employment contracts were concluded in Germany. All seconded staff who have a contract concluded in Germany or who were resident in an EU member state when they signed their contract are also covered by this remuneration system.


GIZ employees receive basic remuneration determined on the basis of eight salary bands. Each band covers all comparable functions. Basic remuneration can increase in line with an employee’s performance evaluation, which is an integral part of the annual staff assessment and development talks with line managers.

Salary negotiations are held every two years and result in changes to the collective agreement or remuneration system. They are negotiated with the collective bargaining partner ver.di. Changes to the collective bargaining system must be approved by the company’s Supervisory Board, thus ensuring that the interests of both the workforce and the Shareholder are taken into account.


Under the National Personnel Policy, each country of assignment has a uniform system of remuneration based on the national legislation of that country. It is based on six bands with binding upper and lower salary limits. These ensure that salaries are paid at going market rates in each country. Every function is assigned to a salary band. The salary structure is reviewed regularly by the respective country office and adjusted where appropriate, taking into account salary levels at other organisations and companies

The country director is responsible for establishing a procedure for performance-related remuneration. This procedure must be standardised country-wide and agreed with the GIZ business sectors. The level of individual performance-related remuneration then depends on the assessment of overall performance in the annual staff assessment and development talk.