Wage Increases & One-Off Premiums: What You Need to Know

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Austrian Metal Industry Secures wage Deal, Aims to Restore Competitiveness

A new two-year collective bargaining agreement for Austria’s metal technology industry promises wage increases and flexibility for employees, signaling a renewed commitment to social partnership and a strategic effort to address declining international competitiveness.

Austria’s metal technology industry, a cornerstone of the national economy, has reached a crucial agreement on wages and working conditions. The deal,finalized today,seeks to balance employee needs with the imperative to bolster the sector’s position in global markets.

Did you know?– Austria’s metal technology industry generated €45.2 billion in production value in 2024,making it the country’s largest industrial sector.

Addressing a Competitiveness Crisis

According to a statement released by the industry association, a key driver behind the negotiations was the growing concern over the loss of competitiveness faced by Austrian metal firms.”In recent years, the orientation of wage increases on domestic inflation has led to wage costs compared to our competitors much to much,” a senior official stated. This disparity has made Austrian-produced metal goods less attractive on the international stage. The new agreement aims to mitigate this issue.

Reader question:– how does this agreement effect apprentices? Apprentices will receive a 2% income increase and a one-time payment of €250.

Key Provisions of the Agreement

The agreement, effective November 1, 2025, outlines a phased approach to wage increases:

• November 1, 2025: Actual wages and salaries will increase by 1.41%. Employees will also have the option of receiving either two additional days of leisure time or a bonus of 1,000 euros (two payments of 500 euros) to offset rising costs. The specific implementation of this benefit will be persistent at the company level.
• Apprenticeship Boost: Apprentices will see their income increase by 2%,alongside a one-time payment of 250 euros.
• november 1, 2026: Wages and salaries will further increase by 1.9%.
• Minimum wage Adjustments: The basic levels of collective agreement minimum fees will increase by 2% in 2025 and 2.1% in 2026.

The wage increases are tied to inflation targets within the Eurozone, and are intended to serve as a benchmark for other industries and the federal government. “All actors have to contribute together through reserved wage degrees and an active economic policy to bring inflation to the European target value,” the release emphasized.

Pro tip:– The agreement’s wage increases are linked to Eurozone inflation,aiming to stabilize costs and maintain competitiveness.

A Sector of Significant economic importance

The metal technology industry (MTI) is Austria’s largest, generating a production value of 45.2 billion euros in 2024. It directly employs approximately 130,000 people and supports up to 300,000 jobs indirectly. The industry is characterized by its medium-sized structure, with over 85% of businesses being family-owned, and accounts for a fifth of all Austrian exports.

More than 1,100 companies are represented by the specialist association of metal technology, with around 800 focusing specifically on the metal-technical industry and operating under the MTI collective agreement. The association itself is a major economic and employer association within Austria.

Renewed Social Partnership

The successful conclusion of these negotiations is being hailed as a sign of revitalized social partnership within the Austrian economy. After a period of difficulty, the agreement demonstrates the ability of employers and employees to find common ground and address