Volkswagen plans to freeze pay for around 660,000 employees worldwide until 2030, according to the company’s Global Manufacturing Council. The new rules are expected to take effect from the fourth quarter of 2026.
Pay-freeze plan and timeline
About 660,000 employees in various countries will see no pay increases until 2030. The measures are scheduled to begin in the fourth quarter of 2026.
The Global Manufacturing Council also warns that, without inflation-related increases, employees’ real incomes could fall by roughly 10%.
Terms of the package: bonuses, payments and jobs
In addition to the pay freeze, the package includes cuts to bonuses, additional payments and benefits. The document also calls into question some jobs within the company.
In 2024 Volkswagen agreed to cut more than 35,000 jobs in Germany by 2030, reduce German plants’ production capacity by 734,000 vehicles per year and save more than 15 billion euros annually. In 2026 it plans to cut a further 50,000 jobs worldwide, and the future of several plants in Germany remains uncertain.
Unions’ reaction and the company’s position
The works council and the trade union IG Metall have already opposed the pay freeze; IG Metall is demanding a 5% pay rise. Talks between the company and employees are due to start at the end of November.
The company has not confirmed the plans and called the reports “speculation”, saying that personnel cost issues will be discussed in a new round of talks this week. The group had previously planned to reduce its model range from roughly 150 to 75 by 2035.
