Salary negotiations for civil servants: Government pushes for compromise!

Salary negotiations for civil servants: Government pushes for compromise!

On September 16, 2025, the first, decisive talks took place between the government and the public service union about civil servants' salaries. These negotiations, which lasted about 3.5 hours, are the first in a series that the black-red-pink coalition wants to initiate to clarify the salary situation. Union chairman Eckehard Quin said the union would now go to its committees to decide on possible negotiations. Government representatives expressed their hope that the union would be willing to negotiate, as the talks are very important and sensitive.

The problem stems from a financial statement from the previous year in which a wage increase of 3.5 percent was agreed, which was, however, 0.3 percentage points below inflation. An increase of 0.3 percentage points above inflation was originally planned for 2026, which corresponds to around 3.3 percent. Wifo boss Gabriel Felbermayr was called in to clarify the financial figures for the negotiations. No details were given about a formal offer, but what the coalition was planning was clearly communicated.

Financial challenges and appeals to the union

At the end of the round of talks, the government representatives, including civil servants' state secretary Alexander Pröll (ÖVP) and finance minister Markus Marterbauer (SPÖ), appealed to the union to actively enter into negotiations. Marterbauer described the conversation as good and open, while NEOS negotiator Martina von Künsberg Sarre emphasized that constructive negotiations and an effort from society as a whole were necessary. Quin, however, left it unclear when exactly the union would decide whether to formally begin negotiations, but cited the end of next week as the likely time for a decision.

Another central issue is the planned zero wage rounds in the budget plans for 2027 and 2028 that the government is bringing into play. One percent salary increase for civil servants costs an estimated 190 million euros. Marterbauer indicated that the government could accommodate the union if it agreed to unwind the package in 2026. Quin was optimistic and said he was “not afraid of anything” and was not afraid of zero pay rounds.

Context of ongoing negotiations

Salaries in the public sector were already in focus at the end of 2022, when two rounds of negotiations took place under then Vice Chancellor Werner Kogler. These were planned for the years 2025 and 2026 and provided for increases that were well below the inflation rate of 3.8 percent at the time. In the current negotiations, public service spending, which is budgeted at 18.7 billion euros for 2023, can be significantly influenced. Personnel costs are expected to increase by more than one percent in 2026.

Salary adjustments are already pending for civil servants and state employees. These are to increase by 5.5 percent from February 1, 2025, while an increase of 3 percent is planned for federal and local government employees from April 2025. A certain high in salaries is therefore in sight, but the exact level remains speculative and depends on the upcoming negotiations and inflation.

The current situation highlights the challenges facing the government and the union. Both sides must find an agreement that not only takes into account the needs of the officials, but also keeps the state's financial conditions in mind. The course of the upcoming talks will be crucial for the further development of salaries in the public sector in the next few years.

The reporting on the salary negotiations shows the complicated framework conditions and the need for fair compensation in the public service. Vienna.at reports about the central round of discussions, during Vienna newspaper provides further background information on the developments. Those too public service news inform about the upcoming salary increases for civil servants and employees in the next few years.