Minimum rate for Austria

Austria is one of only six EU countries without a minimum wage. However, with more than 90% of all employees covered by collectively-negotiated agreements, the unions argue that a statutory minimum wage is not necessary, provided the minimum rates in these agreements are adequate. 


At the end of June, unions and employers agreed on a minimum rate of €1,500 a month (around £1,350) in all agreements by 2020. 


New research has now been published, forecasting the impact of the move. 


A report from an economic research institute, Wifo, published last month, finds that 291,000 people (9.1% of all employees) would benefit, with their pay increasing by 17% on average. 


It also suggests that the economic effects of an increase to €1,500 a month would boost consumption, helping the economy.