Collective agreement for 60,000 employees: salary increase comes into force!

Collective agreement for 60,000 employees: salary increase comes into force!

After 11 weeks of intensive negotiations, unions and employers were able to conclude a new collective agreement for the electrical and electronics industry (EEI) in Austria. This agreement, reached on June 6, 2025, affects around 60,000 employees and entails significant wage increases. The negotiations were marked by major differences between the two sides, but through threats of strikes and company meetings, a compromise was found that was viewed as viable by both sides. The unions' chief negotiators were Reinhold Binder (PRO-GE) and Eva Scherz (GPA).

The new regulations stipulate that minimum wages, basic salaries and apprentice incomes will increase by 3% from May 1, 2025. The number of actual wages and salaries will be retroactively increased by 2.75%, with the maximum increase being 115 euros. This will result in an average wage increase of around 2.15%, which means permanent inflation compensation, particularly for low and middle income groups. The new minimum wage is 2,478.76 euros and the mileage allowance will be increased to 50 cents per kilometer.

Economic Difficulty Clause

Another important element of the new collective agreement is the introduction of a recession clause. This clause allows companies that have had a negative EBIT for two years or made a loss of more than 2% in the last financial year to reduce the increase in actual wages to up to 50%. The unpaid amount can be converted into one-time payments or additional time off.

In addition, the leisure option for companies was extended until 2030. This element could be crucial for many companies in a changing economic landscape. The conclusion of the collective agreement is celebrated as a joint success of the works councils and employees and is part of a broader trend that can increasingly be seen in the Austrian working world. Similar increases have also been achieved in other industries, such as airports, wood processing and metals, with wages often increasing by more than 3%.

The comparison with other industries

While the electrical and electronics industry has now taken a significant step towards better working conditions, it is clear that wages in Austria are relatively high compared to the EU. Austria has the third highest labor costs in the European Union, making collective bargaining negotiations even more crucial. Other sectors, such as construction and retail, have also been granted increases recently, averaging between 2.65% and 3.9%, which continues to drive the discussion about fair pay.

Overall, the new collective agreement in the electrical and electronics industry not only reflects an improvement for employees, but also shows the commitment of unions and employers to respond to economic challenges and ensure fair pay. The developments in collective bargaining are therefore of central importance for the future of the world of work in Austria.

For further details on the negotiations and the new framework, visit the articles on 5min, GPA and ÖGB.