Search
Contact
27.04.2015 | KPMG Law Insights

Association of universities criticizes professors’ salaries

Dear Readers,

February is always a short month. Our newsletter adapts to this – at least in terms of the number of articles – for once. The reason is simple, but hopefully will convince you anyway: Not much happened in the month of February. The EU Commission has been reticent with news in the area of education and research, and there is nothing spectacular to report from the “Union framework front” either. But we still have a bit of “EU” for you: As part of the HORIZON 2020 funding program, there is further funding for top researchers who want to bring their innovations to market with the help of a financial injection from the EU.

We also do not want to withhold from you the fact that there has been a critical look at universities by the anti-corruption organization Transparency International. There are fears that the independence of universities will be jeopardized due to their – more or less close – relationships with business. So far so good, criticism can be made fruitful. But if e.g. contract research as a whole is placed under general suspicion because of the financial involvement of commercial enterprises, this is decidedly going too far. The German Rectors’ Conference thinks so, and so do we.

We wish you interesting reading!

Sincerely yours

Public Sector Team of KPMG Rechtsanwaltsgesellschaft mbH

Mathias Oberndörfer Dr. Anke Empting

Lawyer Attorney

Three years after a high-profile ruling by the Federal Constitutional Court, the German Association of Universities and Colleges concluded in a study that the structure of professors’ salaries at German universities still needs to be improved.

 

Requirements of the Federal Constitutional Court

In a landmark ruling at the beginning of 2012, in response to a complaint by a Hessian university professor, the Federal Constitutional Court declared the Hessian regulation on the remuneration of professors in grade W 2 to be too low and thus unconstitutional, as it violated the principle of alimentation from Article 33 (2) of the German Constitution. 5 of the Basic Law – i.e. the principle of appropriate, lifelong payment of civil servants. The state of Hesse, whose professors’ salaries were in the middle of the pack compared to the other states, was then called upon to raise the legally stipulated salary level for professors.

Following the ruling of the Federal Constitutional Court, the basic salary of W2 professors was raised throughout Germany. However, in Hesse of all places, the state where the constitutional court ruling originated, this increase was only slight, according to the German Association of Higher Education Institutions.

In order to balance out this divergence to the detriment of Hessian university teachers and to eliminate the locational disadvantage of Hessian universities associated with the salary differences, the German University Association is calling on the Hessian state government to release additional state funds and also to give the universities greater leeway in performance-related pay.

Current legislative project in Berlin

The remuneration of university professors is also currently a controversial topic in the Berlin Senate. In October 2014, a resolution was passed there, initially in response to the requirements of the Federal Constitutional Court ruling, to amend professors’ salaries. According to this, university teachers should only receive more under the performance-based W pay system if they have previously received little or no performance bonuses on their basic salary.

This had led to considerable criticism from the Berlin universities and was amended at the end of January 2015 to the effect that allowances are now paid in all cases to reward special services. In addition, the basic salary of junior professors is to increase by 200 euros. The German Association of Higher Education Institutions points out that this would make the state of Berlin, along with Baden-Württemberg, the only federal state so far to provide for an increase in W1 basic pay as well, in the course of the reform of W pay required by the ruling of the Federal Constitutional Court in February 2012.

Explore #more

06.05.2025 | KPMG Law Insights

Social insurance obligation for teachers – transitional rule creates clarity

Teachers and lecturers are often hired on a self-employed basis. This practice makes the German pension insurance fund sit up and take notice. It is…

29.04.2025 | KPMG Law Insights

Anti-money laundering and transparency register – what will the new government change?

According to the coalition agreement, the future government wants to “resolutely combat” money laundering and financial crime. The coalition partners have announced that legal…

25.04.2025 | KPMG Law Insights

Coalition agreement: The plans for supply chain law, EUDR and GTC law

In the coalition agreement, the CDU/CSU and SPD agreed: “We will also abolish the National Supply Chain Due Diligence Act (LkSG).” At first glance,…

23.04.2025 | KPMG Law Insights

Climate protection and sustainability in the 2025 coalition agreement

Climate protection has achieved a level of importance in the coalition agreement that was not expected. It had not played a significant role in the…

17.04.2025 | KPMG Law Insights

What the coalition agreement means for the financial sector

The coalition agreement between the CDU/CSU and SPD also has an impact on the financial sector. Here is an overview. Increasing the energy supply The…

17.04.2025 | KPMG Law Insights

AWG amendment provides for tougher penalties for sanction violations

Due to the ongoing Russian war of aggression against Ukraine, the EU wants to make it easier to prosecute violations of EU sanctions. The corresponding…

16.04.2025 | KPMG Law Insights

What the new digitization plans in the coalition agreement mean

The coalition agreement shows how the future government wants to shape Germany’s digital future. What do the plans mean for companies in concrete terms? Here…

14.04.2025 | KPMG Law Insights

How the new coalition wants to accelerate investment in infrastructure

The coalition agreement between the CDU/CSU and SPD marks a fundamental new beginning in German infrastructure policy. In view of a considerable investment backlog, the…

14.04.2025 | KPMG Law Insights

Coalition agreement 2025 and NKWS: Booster for environmental and planning law?

In the current coalition agreement, environmental and planning law is mentioned at various points throughout the coalition agreement, highlighting its great importance. However, the…

11.04.2025 | KPMG Law Insights

What’s next for foreign trade? The plans in the 2025 coalition agreement

Foreign trade and foreign trade have become particularly explosive in view of the new US tariffs. The CDU/CSU and SPD have agreed on the following…

Contact

Mathias Oberndörfer

Geschäftsführer
Bereichsvorstand Öffentlicher Sektor KPMG AG Wirtschaftsprüfungsgesellschaft

Theodor-Heuss-Straße 5
70174 Stuttgart

Tel.: +49 711 781923410
moberndoerfer@kpmg-law.com

© 2024 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

 KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll