Public service in crisis: salary losses of up to 50,000 euros!

Public service in crisis: salary losses of up to 50,000 euros!

The recent public sector pay settlement is causing considerable concern among employees. According to the Action Group for Independents and Freedom (AUF), this conclusion will lead to a real wage loss of up to 50,000 euros over the next ten years. Werner Herbert, federal chairman of the AUF, vehemently criticizes the fact that the negotiations do not do justice to those who keep the country running.

Irene Eisenhut, federal chairwoman of the Free Trade Union of Austria (FGÖ), describes the result as a “slap in the face” for public employees. She emphasizes that the GÖD union did not adequately represent the interests of these employees. Eisenhut emphasizes the excellent work of the employees in various areas and calls for fair pay and appreciation for their achievements. These critical voices illustrate the dissatisfaction with the perception of the public service.

Potential salary losses are fueling concerns

Concerns about the salary situation are reinforced by current analyzes from the Momentum Institute. It should be noted that there is a risk of substantial salary losses in the zero wage rounds, which are planned for 2026 and possibly also for 2027 and 2028. This could mean a loss of up to 5,680 euros for employees with a monthly income of 5,000 euros. For employees with a salary of 1,500 euros, the losses would add up to around 1,704 euros over two years.

Oliver Picek, chief economist at the Momentum Institute, emphasizes that zero wage rounds could allow employees in lower salary groups to work for more than a whole month for free. These losses could not only affect current earnings, but also have long-term effects on future salary adjustments and pensions.

Real wages and their meaning

The discussion about salaries in the public sector is in the context of general developments regarding real wages. The real wage index, which measures earnings in comparison to price developments, is crucial for the purchasing power of employees. An increase in the real wage index means that earnings have increased more than prices, while a negative rate of change signals the opposite. These metrics are particularly relevant because inflation has a significant impact on purchasing power.

The real wage index is calculated from the nominal wage index and the consumer price index. This provides information about how well the German population's earnings can cover the cost of living. An increase in prices could further burden the already questionable purchasing power of public sector employees.

In summary, current developments in the public sector cast an alarming perspective on the financial future of employees. Demands for fair pay and appreciation are loud, while the possible loss of wages paints a painful picture. Trade union representatives must now deal intensively with these issues in order to effectively represent the interests of employees.