Income report:

Salaries of low earners are becoming less valuable

(Bild: Tröster Andreas)

The incomes of Austrian white-collar and blue-collar workers have risen at roughly the same level in recent decades. Between 2004 and 2023, workers' salaries increased nominally by an average of 2.5 percent annually, while those of salaried employees rose by 2.6 percent, as the ACA's income report published on Thursday shows. However, in real terms, i.e. adjusted for inflation, there have recently been losses, especially for low earners.

Looking at gross median incomes, public servants have recently earned more than white-collar and blue-collar workers, but the growth curve here has been weaker at 2.3 percent on average in recent years.

Gap between blue-collar and white-collar workers
While the development of salaries is roughly comparable in nominal terms for white-collar and blue-collar workers, there is a gap in absolute figures for these groups. For example, the average gross annual income of blue-collar workers in 2023 was €26,426, while white-collar workers earned significantly more at €40,160.

Comparison between men and women
The gap between men and women has hardly changed recently. Although the median income of employed women has increased more than that of men in relative terms over the years, overall this has not led to any significant change in the relative income situation. To illustrate: in 1998, the gross annual income of women was 60.6 percent of the median income of men. This figure had only risen to 66.4 percent by 2023.

(Bild: Krone KREATIV)

The report also shows that higher incomes tended to increase more than lower incomes. This is particularly clear in the case of the 10 percent of the lowest gross incomes, which have increased by 42 percent in nominal terms since 1998, whereas the 10 percent of the highest incomes have seen an increase of a whopping 82 percent. In general, however, the ACA has also identified counter-trends since 2015, including collective agreement increases in minimum wages from 2017.

The ACA also noted that the lowest incomes have suffered real losses in the past, i.e. inflation has not been compensated for by wage and salary increases.

What has changed since 1998
This becomes particularly clear when the gross median income from 1998 is used as a point of reference: In 2023, for example, only 78 percent of the income level at that time was reached. In the income category that is exceeded by 10 percent of recipients, however, the figure was slightly higher than in 1998 - in other words, inflation has been compensated for this group since then. The median income fell slightly compared to 1998, although the real loss here was nowhere near as great as for lower earners.

How well the salary turns out, however, is also strongly dependent on the sector. Last year, employees in the energy supply sector (66,292 euros), the finance and insurance sector (55,402 euros) and the information and communication sector (52,469 euros) earned the highest gross annual incomes. The lowest incomes by far were in the accommodation and food service sector (15,166 euros). Median incomes were also low in the arts, entertainment and recreation sector (19,520 euros).