Social economy-KV

Salaries rise by 4 percent despite recession

The approximately 130,000 employees in the private care, health and social sector can be happy.(Bild: SKW - stock.adobe.com)

After three rounds of negotiations, an agreement has been reached on the collective agreement for the social economy sector: the actual and minimum salaries of around 130,000 employees in the sector will therefore rise by four percent.

Allowances and bonuses will also be increased by four percent, as announced by the trade unions GPA and vida as well as Sozialwirtschaft Österreich (SWÖ). The new collective agreement will apply from January 1, 2025, and there are also changes to the framework law.

"We were able to secure more money for stand-ins and also achieve a better classification for colleagues in administration," said Michaela Guglberger, negotiator for the vida trade union, according to the press release. The large flexibility supplement will rise to 50 euros, while the small flexibility supplement will increase to 25 euros. Furthermore, the job groups for administrative staff have been improved and the supplementary collective agreement for the care allowance has been extended until the end of 2025. Social security was agreed for childminders.

SWÖ: Real wage increase achieved despite recession
"With the salary agreement of + 4 percent, we are securing the purchasing power of employees," said Eva Scherz, negotiator for the GPA trade union, expressing her satisfaction. "This agreement was only possible because our colleagues stood behind us and demonstrated their strength at works meetings and rallies." Works meetings and demonstrations were held before the third round of negotiations.

The employers' side also praised the agreement. Despite the recession and poor economic outlook, a real wage increase had been achieved for employees in the healthcare and social professions, but it had not been an easy agreement. "The next year will be very difficult economically, but at the same time it must be clear that the health and social sector must be worth something to politicians," said SWÖ Chairman Erich Fenninger.