"Historic step"

At last: agreement on salaries for civil servants!

Künsberg Sarre (NEOS), Finance Minister Markus Marterbauer (SPÖ), Sts Alexander Pröll (ÖVP), GÖD Chairman Eckehard Quin and younion Chairman Christian Meidlinger announced the agreement on Tuesday evening.(Bild: APA/TOBIAS STEINMAURER)

Civil servants and salary negotiations - a tough affair, all the more explosive given the precarious budgetary situation. But now an agreement has finally been reached between the union and the federal government. The "Krone" knows the details.

The federal government under Finance Minister Markus Marterbauer of the SPÖ and State Secretary Alexander Pröll (ÖVP) sought a three-year agreement. Background: The adjustment for 2026 had already been negotiated last year, but was too high due to inflation plus 0.3 percent. It was hoped that the union would give in. They were aiming for half. In return, they would be prepared to unravel the zero wage round priced in for 2027 and 2028.

An average of 1.5 percent by 2028
What was achieved on Tuesday evening: After intensive negotiations, there will be an average inflation compensation of 1.5 percent over the next three years. The government expects to save over 310 million euros as a result. 

Pröll sees "historic step"
"Extraordinary times also require extraordinary efforts. For the first time in the history of the Second Republic, an existing agreement for the public sector has been unraveled - this is a historic step. After tough but fair negotiations, we have achieved a major success," said Alexander Pröll at the announcement of the results on Tuesday evening.

"I have always said that you come together by talking. We talked and came to a positive conclusion in the negotiations. This constructive, social partnership-based cooperation is the basis for the success of the Austrian model. We were able to achieve a good and fair result. It is both an economically and socially sensible solution. The purchasing power of low salaries is maintained and an important contribution is made to restructuring the state budget," summarizes Finance Minister Markus Marterbauer.

The salary agreement for civil servants at a glance:

• There will be no increase from January 2026 to the end of June 2026 .
• In the period from July 2026 to July 2027, there will be an increase of 3.3 percent.
• From August 2027 to August 2028 and from September to the end of 2028, salaries will be increased by 1 percent in each period. This means an average increase of 1.5 percent.
• The National Council must now approve the amended salary agreement. However, this is more of a formal act.

"We believe it is an important signal that for the first time a public sector agreement has been unraveled and renegotiated. The new agreement will ease the burden on the budget in 2026. Overall, the agreement will be significantly below inflation over a period of three years," says NEOS negotiator Martina von Künsberg Sarre. We are in a "difficult and tense economic and budgetary situation", which is why the public sector will also make a significant contribution to relieving the budget.

According to GÖD Chairman Eckehard Quin, the result is presentable under the given budgetary conditions. "We have now found a solution for three years," said Christian Meidlinger from the FSG. It is hoped that the negotiations will then return to a "normal" situation in 2029. 

Despite the tense starting position, the talks on Tuesday were solution-oriented from the outset. In view of inflation and mountains of debt, the population would probably not accept a non-agreement or even planned industrial action without indignation. And so an agreement was reached on Tuesday evening.