Collective wage agreement fixed:

Metalworkers’ wages rise by 4.8 percent

Sharp increase in wages and salaries for around 200,000 employees in the metal industry

(Bild: stock.adobe.com - magele-picture)

It is now fixed: wages and salaries in the metal industry will rise by 4.8 percent from November 1. As agreed last year, this is one percent more than inflation. This will increase real wages for most of the almost 200,000 employees. But there are again exceptions.

Today, the PRO-GE and GPA trade unions reached a collective agreement with all six employers' associations in the metal industry for around 200,000 employees. The result: actual wages and salaries will rise by 4.8 percent (rolling inflation plus one percent). Apprentices' salaries will increase by around 5.4 percent on average. Allowances and expense allowances will rise by 3.8 percent. The allowance for night work and 3rd shift will be increased by 8.16%. The new minimum wage or minimum basic salary is 2,518.43 euros.

Real income increase for the majority of metalworkers
"The increases secure the income of around 200,000 employees who are still confronted with the consequences of the wave of inflation and interest rate increases," said the two chief negotiators on the employee side, Reinhold Binder (PRO-GE) and Karl Dürtscher (GPA). It is a matter of "restoring lost confidence and boosting investment and consumption in Austrian households".

Trade unionists Binder and Dürtscher (from left): "The increases will secure the incomes of around 200,000 employees."

(Bild: APA/GEORG HOCHMUTH)

However, not all employees will receive the full increase. As in the previous year, there is a hardship clause for companies with particularly high costs: if personnel expenses exceed 75 percent or even 90 percent of value added, the increase can be reduced by 0.75 percent or 1.5 percent respectively. However, this must be compensated by more time off or a one-off payment. "We are currently experiencing the longest period of recession since 1946. This hardship clause is intended to help personnel-intensive companies in particular to secure employment," say Binder and Dürtscher.

We show how much more remains gross and net
Based on calculations by finanzrechner.at, the "Krone" shows how much more metalworkers will actually receive - gross, net and taking into account the increase in tax brackets (keyword "cold progression") from January 2025 (see chart).

(Bild: Krone KREATIV/stock.adobe)

The agreement in detail:

• Actual increase: +4.8%
• Collective agreement increase: +3.8%
• New minimum wage: 2518.43 euros
• Increase in apprentices' income +5.37% (on average): 1st year of apprenticeship 1050 euros / 2nd year of apprenticeship 1270 euros / 3rd year of apprenticeship 1625 euros / 4th year of apprenticeship 2110 euros
• Allowances and expense allowances: +3.8%
• Night work  allowance / 3rd shift: +8.16%
• Mileage allowance from January 1, 2025: 0.50 and from 15,000 km 0.47 euros
• Hardship clause: In companies in a particularly difficult situation, a lower wage increase can be agreed if this is compensated by more time off, a one-off payment or similar.
• Effective date: November 1, 2024
• Term: Twelve months

(Bild: Krone KREATIV)

Last year, the union and employers agreed on an average increase of 8.6% after tough negotiations (see chart). At the time, the agreement was one percentage point below the rolling inflation rate of 9.6 percent. In contrast to this year, there was a social scale: specifically, wages and salaries rose by ten percent as of November 1, 2023, but with a maximum cap of 400 euros per month.