Public sector workers will be covered by two new three-year agreements running from 1 April to the end of March 2024. The agreements covering municipal and state sector workers both have an overall value of 6.75% of the pay bill over the three years but the amounts are distributed differently. In the municipal agreement there will be a 5.02% general increase but there will be additional amounts allocated to address low pay, equal pay, recruitment and organisational issues, taking the overall increase to 5.94%. In the state sector there will be a 4.42% pay rise over the three years, with increases in six instalments in April and October of each year. Both agreements are covered by a pay formula that keeps pay increases in line with those in the private sector. In the case of the state sector this should mean an extra 0.63% over the course of the agreement. Both agreements include measures to tackle mental health at the workplace and initiatives to promote sustainability. Both agreements also include proposals to help retain older workers and in the case of the state sector this will mean specifically a 0.8% pay addition from the age of 62 that can be converted to two extra days of leave. The municipal agreement provides for further negotiations on how to give full-time, permanent employment the priority in the fact of an increase in temporary, part-time and hourly paid employment.
Public sector deals ensure real pay rises
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After three rounds of negotiations, public sector unions have secured a minimum pay rise of 2.51% rising to 3.45% for lower paid workers. The increase will be implemented on 1 January 2019 and will include a 2.76% increase on other payments and allowances. The increases are ahead of the 2.02% inflation rate that formed the basis of the negotiations The younion public service union says that workers with a gross monthly salary of EUR 2000 will see pay rise by around 3.3% while those on EUR 3000 will get a 3.0% increase. The unions now want to see all regions implement the pay rise in full.
The younion and GÖD public service unions have successfully negotiated a new pay settlement for the public sector after four rounds of negotiations. The main increase in pay will be 2.25% from 1 January 2020 but with a minimum guaranteed increase of EUR 50 a month this will mean 3.05% for the lowest paid. Other payments and allowances will increase by 2.3%. This is above the 1.7% inflation rate used as a basis of the negotiations and ahead of the current inflation rate of 1.13%.
The annual pay negotiations that cover the public sector have resulted in an average pay increase of 3% which will also apply to allowances and other pay additions. Lower paid workers will actually see their pay rise by 3.22% with a 2.91% applied to higher salaries. The increases come into effect on 1 January 2022. The increase is the highest for more than 10 years and ahead of the inflation rate up to September 2020 which forms one of the agreed bases for the negotiations.