Rush of above-inflation deals in Austria

Austrian unions have signed a series of deals delivering increases well above inflation in recent weeks. With prices increasing at 5.4% (October 2023) unions have been able to achieve pay increases from 1 January 2024 of between 8% and 10%.

Examples in the private sector include: an average 8.6% increase for 200,000 employees in the metalworking industry, with the lowest paid getting a 10% rise; a 9.2% increase for 130,000 employees in private health and social care; and a 9.2% increase for 54,000 people cleaning the outside of buildings. Unions representing public sector workers agreed pay increases of between 9.15% and 9.71% at the end of November.

As is usual in Austria, most settlements are for 12 months. The exception is the deal for metalworking, which is for two years: 8.6% in 2024, with pay guaranteed to go up by 1.0% more than inflation in 2025.