The increase is at least 82.40 euros. In the maximum case, wages are increased by 437.80 euros. With the increase of 3.5 percent, negotiators remained below the undisputed inflation of 3.8 percent. However, a conclusion is already set for 2026, where another 0.3 percent will be added to inflation, which is taken from October 2024 to September 2025.
The average increase of 3.5 percent corresponds to the rolling inflation for the next two years, Youngion boss Christian Meidlinger told the Ö1-Mittagsjournal. This corresponds to the procedure in other KV negotiations, Meidlinger said.
Graphics: APA/ORF; Quelle: CAD
Kogler emphasized in a press release that the agreement was reached in the context of difficult conditions and circumstances. It is often forgotten that the public service competes with the private sector. So he has to remain an attractive employer through salary agreements. With the deal, the government is ensuring social fairness and relief, said Finance Minister Gunter Mayr (ÖVP).
Advances in night negotiations
The agreement was reached in secret negotiations, which lasted, according to Boss Young Meidlinger, until Tuesday night. The agreement was reached this morning – one day before the start of the federal staff representative election. With the agreement, the big rally planned for Tuesday in central Vienna was also cancelled. Up to 30,000 people were expected there. Shortly before midday, the two responsible unions said in a joint statement: “The demonstration has been cancelled!”
The agreement covers approximately 250,000 federal employees in total. A resolution is still required in the National Council. The ÖVP and the Greens, who are still in the coalition, no longer have a majority. Thanks to the SPÖ, it is considered likely to be approved. Whether state and city employees receive the same increase, as is usually the case, must be determined in the states. This concerns a total of approximately 324,000 people who are affected. Tyrol announced on Tuesday evening that it would accept the federal government’s agreements.
NEOS feels ignored
The surprise agreement announced by NEOS, which is currently negotiating with the ÖVP and SPÖ over a future government, has sparked outrage.
The Ministry of Finance had previously included two percent, which now raises the question of “where the money comes from,” said the NEOS representative. He criticized that his party was not involved in the agreement or that he was not aware of it. “We feel ignored,” says Schellhorn. “We are not the sidecar,” said the mandate towards the ÖVP and SPÖ and asked for a “clarification conversation”.
The social economy also comes to an agreement
The negotiators for the collective agreement for the social economy were also able to report an agreement on Tuesday. The actual and minimum salaries of around 130,000 employees of the industry will rise by four percent, as the unions GPA and vida and the Austrian Social Economy (SWÖ) announced. Allowances and surcharges will also increase by four percent. The new collective agreement will apply from 1 January 2025.
Graphics: APA/ORF; Quelle: CAD
There are also innovations in the governing law. “In this way, we were able to get more money to enter and achieve a better ranking for colleagues in the administration,” said Michaela Guglberger, a negotiator for the vida union, according to the broadcast. “With a salary agreement we are consolidating the purchasing power of the employees,” said Eva Scherz, the GPA union negotiator, with satisfaction.
Higher flexibility allowance
The employer side also praised the agreement. Despite the economic recession and poor economic prospects, real wage increases were achieved for employees in health and social professions, but the conclusion was not easy. “Next year will be very difficult from an economic point of view, but at the same time it must be clear that the health and social sector must be worthy of politics,” said SWÖ chairman Erich Fenninger.
The large flexibility surcharge increases to 50 euros, the small flexibility surcharge increases to 25 euros. In addition, the use groups for administrative employees were improved and the additional collective agreement on the care subsidy was extended until the end of 2025. Social
Degrees in other sectors too
On Monday evening, the social partners agreed on a salary increase for approximately 30,000 employees in the freight transport industry. Wages will rise at a flat rate of 80 euros on 1 January 2025. On average, this means a four percent increase in salaries. In the lower job groups, this agreement will bring a real increase in wages between 4.4 percent and 3.9 percent, according to the GPA’s chief union negotiator, Anita Palkovich.
A salary agreement was also reached for the information and consulting area. Here the increase is 3.85 percent as of January 1. There was also an agreement for forestry workers in the private sector: apprentice wages and income will rise by 3.6 percent, the collective minimum wage will be 2,182 euros next year, and apprentices in their first year of training will be paid for the dangerous people and jobs very physically demanding 1,465 euros.
The Austrian Trade Union Confederation (ÖGB) also reports a KV agreement for horticultural businesses in Carinthia. The increase at the beginning of the new year is 3.6 percent, which means that the minimum wage is now 1,869 euros.
An agreement in the trade and cleaning sectors is still pending. After four rounds of unsuccessful talks, the trade employees announced disruptive actions for Friday and Saturday. On Saturday these will take place in Linz at Schillerplatz and in Vienna at the Donauzentrum, among others. The employer side recently offered a 3.1 percent increase.
How do recent collective agreements aim to enhance the competitiveness of public sector jobs compared to private sector roles?
Nded. These changes aim to enhance the attractiveness of positions within the public sector and retain skilled workers, especially in the challenging context of current economic conditions.
The negotiations for collective agreements reflect ongoing efforts to balance labor costs with the need to ensure that public sector jobs remain competitive compared to private sector roles. Finance Minister Gunter Mayr emphasized the importance of maintaining social fairness and providing employee relief through these agreements.
As more details emerge, unions and employee representatives will undoubtedly continue to assess the implications of this agreement. With further developments expected in the National Council and discussions about salary increases for state and city employees, the overall impact on the public workforce will become clearer over the coming months. The recent agreements highlight a significant step towards addressing employee compensation and work conditions in a volatile economic environment, demonstrating a commitment to public service retention and workforce morale.