Back to news

Austrian Social economy collective agreement: Negotiators agree on a salary increase of 2.7 percent for 2020

April 22, 2020 - Members News

Austrian Social economy collective agreement: Negotiators agree on a salary increase of 2.7 percent for 2020

Employee and employer representatives in the social economy in Austria have concluded their negotiations on a collective agreement.


They agreed on a three-year package: In 2020 there will be an increase in wages of 2.7 percent for the approximately 125,000 employees in the private care, health and social sectors, and an increase of 0.6 percent in 2021 above the inflation rate (period November 2019 to October 2020). From 1st January 2022, working hours will be reduced from the current 38 to 37 hours per week.

“It was a long and tough negotiation, but the work was worth it. The result is economically feasible and a clear sign of appreciation for our employees,” says Walter Marschitz, negotiator of the employers organised in the Austrian Social Economy (SWÖ, members of Federation of European Social Employers).

For employees who were in contact with customers from March to June 2020, there will also be a €500 corona bonus. “We will do our utmost to ensure that this allowance is also tax-free - analogous to the premiums paid in the food trade. Our employees are making an important contribution to keeping Austria going during this time. They deserve this recognition,” said SWÖ Chairman Erich Fenninger.

The reached agreement regulates the collective agreements up to and including 2022, so the next collective agreement negotiations will take place in autumn 2022 for the year 2023. Employer and employee representatives want to use the resulting break in negotiations for a fundamental revision of the collective agreement.

For the original press release, click here.

Sign up to our newsletter

Sign up to our newsletter