If you want to understand this effect, there has been an increase in minimum wage, for the private sector. Also, public wages have to be enough to support a family of 4-5 on a living standard equivalent to the median income of the private sector (which is now higher, even though wages have generally stagnated or are falling, as the lowest wages rose).

The federal government was sued for not fulfilling this rule, and now has to push the lowest wage up toward the median private income, and adjust all payscales up, accordingly. Even the Chancellor gets a big pay raise. The higher the income, the bigger the pay raise, even though the suit was brought for those in the lower pay scales (cops, soldiers, etc.) who were arguably underpaid.

Some of this money will be clawed back by income taxes. Only public employees get the increase, but all earners pay the higher taxes.

This will lead to an overall increase in wages, which means welfare payments, asylum benefits, and retirement payments also adjust upward, accordingly. This is how German private-sector wages consistently trend down, in real terms, and all other income trends up.