Germany’s federal and municipal workers won a gradual pay rise following an overnight deal to prevent further strike action.

“We have reached a responsible wage agreement,” said German Interior Minister Nancy Fesser, responsible for federal employees.

The pressure was on after several weeks of fruitless negotiations and strikes in various public sector sectors – transport, hospitals, the post office – as inflation in Germany hit 7.4% in March on a year-on-year basis, while food prices have increased by 22.3%.

About 2.5 million workers in federal services and municipalities will see their wages rise by 5.5% or at least 340 euros a month from March 2024. From June 2023 they will be paid in several installments tax-free 3,000 euros to deal with inflation.

“In deciding to accept this compromise we have reached our limits,” Frank Wernecke, president of the Verdi union representing civil servants, said in a statement.

Verdi and the civil servants’ federation were demanding a 10.5% wage increase and at least 500 euros a month for 12 months.

This agreement will allow new strikes to be avoided, after many days of mobilization since the beginning of the year. Verdi took part in a massive, national strike at the end of March that paralyzed transport in Germany.

Wage negotiations continue with other sectors, such as the railways, which on Friday went on strike.

At the end of 2022 almost 4 million industrial workers in Germany won a wage increase of 8.5% over two years.

In the aviation industry security staff at Berlin airport have gone on strike on Monday, following a call from Verdi.