Potsdam, Germany, 23 April 2023 (dpa/MIA) - Unions and employers in the German public sector have reached an agreement on a new collective bargaining agreement, after a fourth round of talks late on Saturday in Potsdam.

The approximately 2.5 million public service employees will receive €3,000 ($3,330) in view of high inflation, paid in instalments from June.

From March 2024, incomes will rise by at least another €340.

The agreement largely followed the arbitration recommendation, published a week ago. The agreement is to run for 24 months.

In recent months, Germans trade unions have paralysed public transport, day-care centres, hospitals and refuse collection with strikes across the country in the pay dispute.