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

09.10.2026 | KPMG Law Insights

Claims Management for Cyber Incidents: How Insurers Actively Manage Claims

Cyber incidents are among the most complex claims scenarios for insurers. Ransomware attacks, in particular, can paralyze entire IT infrastructures—with enormous financial consequences. Insurers for …

08.10.2026 | In the media

KPMG Law Guest Column in AUTOHAUS: Consumer Credit Directive: Sales Under New Circumstances

Car dealerships should use the time remaining before the new Consumer Credit Directive takes effect to systematically review their financing and sales processes for regulatory…

08.10.2026 | In the media

KPMG Law Interview with HAUFE: Even If AI Makes a Mistake, the Board of Directors Is Still Liable

AI analyzes, makes recommendations, and helps make decisions. But who bears the consequences if it’s wrong? KPMG Law experts Nikolaus Vincent Manthey and Sabrina Riesenbeck…

30.09.2026 | KPMG Law Insights

Mixed-Use Real Estate as an Opportunity for Downtown Areas

Downtown areas should be vibrant, sustainable, and attractive. But the traditional business model behind them—retail—is becoming less and less viable. Rents are high, customers are…

28.09.2026 | Deal Notifications

KPMG Law and KPMG are advising Rohde & Schwarz on the acquisitions of NEOSAT and PHYTRONIC

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised the Munich-based technology group Rohde & Schwarz on its acquisitions of NEOSAT GmbH…

28.09.2026 | Deal Notifications

KPMG Law and KPMG are advising Diehl Defence on the acquisition of the Dr. Carls aerial imagery database

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised Diehl Defence on its acquisition of the aerial imagery database Dr. Carls GmbH.…

26.09.2026 | In the media

Op-Ed in *Lebensmittelzeitung*: PPWR Introduces New Requirements for the Food Industry

The EU Packaging Regulation (PPWR) has been in effect since August 12, 2026—and presents companies in the food industry with a question that requires urgent…

18.09.2026 | Press releases

KPMG Law Honored at the PMN Management Awards

KPMG Law was awarded first place in the Business Development category at this year’s PMN Management Awards. In addition, the project “The Agent-Based Law Firm”…

18.09.2026 | KPMG Law Insights

How the Data Act Affects the Drafting of Lease Agreements

The EU Data Act is also of great significance to the real estate industry, as modern commercial properties have become data spaces. Heating and air…

15.09.2026 | KPMG Law Insights

Reporting Deadlines for Cyber Incidents Under the GDPR, BSIG, and CRA—Every Hour Counts

After a cyber incident, companies have only 24 or 72 hours to file their initial report with the authorities. A single incident can trigger multiple…

Contact

Mathias Oberndörfer

Managing Partner
Geschäftsführer KPMG Law
Bereichsvorstand Öffentlicher Sektor KPMG AG Wirtschaftsprüfungsgesellschaft

Theodor-Heuss-Straße 5
70174 Stuttgart

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

© 2026 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