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

15.09.2025 | KPMG Law Insights

Bundestag adopts new battery law

On September 11, 2025, the German Bundestag passed the Batterierecht-EU-Anpassungsgesetz (Battery Law Adaptation Act) to adapt German battery law to the EU Battery Regulation 2023/1542.…

15.09.2025 | In the media

Guest article in AssCompact: Embedded insurance: prospects, obligations, potentials

Embedded insurance is on the rise. Although it offers great potential for the insurance industry, it also poses challenges. KPMG Law expert Ulrich Keunecke explains…

12.09.2025 | Deal Notifications

KPMG Law advises managing partners of Deutsche Werkstätten Beteiligungs GmbH on sale to Ateliers de France

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) advised the managing partner of Deutsche Werkstätten Beteiligungs GmbH, Mr. Fritz Straub, on the sale of a majority stake…

12.09.2025 | KPMG Law Insights, KPMG Law Insights

Key Facts about the new draft of the “Data Act

On February 23, 2022, the EU Commission presented the new draft of the so-called Data Act, the “Regulation on harmonized rules for fair access to…

09.09.2025 | Deal Notifications

KPMG Law and Tax advise Adiuva Capital GmbH with Fact Books on the sale of KONZMANN Group

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised Adiuva Capital GmbH, a Hamburg-based private equity firm (Adiuva), in connection with the…

04.09.2025 | In the media

Guest article in Unternehmensjurist: Strategically transforming legal departments: A market overview

What are in-house teams at large companies concerned about when it comes to digital transformation? Which topics will be decisive in the coming years? The…

04.09.2025 | In the media

Guest article in the Unternehmensjurist: Successful change management in the HR department

The HR department plays a crucial role in the digital transformation. It is not only affected by change, but also shapes it. Between transformation, co-determination…

03.09.2025 | In the media

Guest article in the insurance industry: Embedded Insurance – More than just a new sales channel

The insurance industry is facing a paradigm shift. Traditional sales models are increasingly being supplemented by innovative approaches aimed at facilitating access to insurance policies…

03.09.2025 | KPMG Law Insights

Supply Chain Act: reporting obligation no longer applies, sanctions reduced

In the coalition agreement, the coalition partners agreed to abolish the Supply Chain Due Diligence Act (LkSG) as part of the implementation of the…

29.08.2025 | In the media

Statement by Ulrich Keunecke on the special infrastructure fund in Politico

KPMG Law financial expert Ulrich Keunecke explains how the infrastructure special fund can be leveraged with capital from private investors. You can find the article…

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