Tesla announces another round of pay increases in Grünheide
Tesla is planning another pay adjustment at its plant in Grünheide near Berlin. From October 1, pay is set to rise by an average of 4% to 5%, depending on the employee group.
Production workers, who make up the majority of the workforce, are expected to receive the largest increase. Their pay is set to rise by 5%. Skilled workers are to receive a 4% salary increase as well as an additional performance-related bonus.
| Employee group | Planned adjustment |
|---|---|
| Production workers | 5% salary increase |
| Skilled workers | 4% salary increase plus performance-related bonus |
Starting salary could rise to around €48,000
According to Tesla, the current starting salary in production is approximately €45,750 gross per year. If this amount is increased by the full 5%, the resulting annual salary would be around €48,000. That is equivalent to approximately €4,000 gross per month.
Actual pay may vary depending on the role, experience, shift pattern and individual contract terms. For skilled workers, it also remains unclear which criteria will be used to calculate the announced performance bonus.
For production workers, the planned increase amounts to approximately €2,300 more in gross annual pay.
Annual adjustments since 2022
This would not be the first round of pay increases at the Tesla plant. On December 1, 2025, the company had already raised salaries by 4%. According to Tesla, pay has been increased every year since production began in March 2022.
The Grünheide plant is Tesla’s main European production site and primarily manufactures the Tesla Model Y. Demand for the electric SUV therefore remains important for plant utilization. The Model Y continues to rank near the top of the electric car rankings for Western Europe.
Collective bargaining agreement remains the central point of contention
Despite the latest salary increase, Tesla is maintaining its compensation model without a collective bargaining agreement. The company says its pay is above comparable collectively agreed rates. IG Metall, Germany’s largest industrial trade union, continues to call for a collective bargaining agreement with binding rules on pay and working conditions.
The distinction matters for employees: regular voluntary salary increases may be attractive in the short term, but they do not provide the same long-term certainty as collectively agreed pay grades, premiums and working-time rules. Without coverage by a collective bargaining agreement, key conditions are determined through employment contracts and company-level policies.
Relations between Tesla and the union remain tense. Legal disputes arose around the works council elections; a works council is an elected body representing employees at a German workplace. The new round of pay increases is likely to improve the financial position of many employees, but it does not end the broader debate over collective bargaining coverage in Grünheide.
