Employers and unions agree 21% increase in minimum wage

The EIRO industrial relations observatory reports that the government and social partners have agreed new minimum wage rates including a new three-tier minimum wage system. For 2006 the government has recommended a 10.5% increase to HUF 63,000 (254 euros). The second rate for jobs requiring a vocational qualification will be 10% higher at HUF 70,000 and the third minimum wage rate will be another 10% higher at HUF 77,000 for jobs requiring a degree. The Ministry of Finance has also indicated the level of minimum wages up to 2010, with the lowest rising to 90,000. Union targets for the minimum

In response to the opening up of the labour market to countries from Eastern Europe, the ÖGB trade union confederation has secured an agreement with the employers to monitor pay rates and ensure that employers are paying at least the minimum rates set in sectoral agreements. There is no legal minimum wage but very high levels of collective bargaining coverage. Unions and employers have called on the authorities to take on more employees to ensure that pay can be effectively monitored. [Read more at > vida (DE)->http://www.vida.at/servlet/ContentServer?pagename=S03/Page/Index&n=S03_0.a&cid

The ÖGB trade union confederation has signed an agreement with the WKÖ employers' organisation establishing a €1,000 as the minimum monthly pay for full-time workers. There is no statutory minimum wage in Austria and the trade unions have not been calling for one because of the very high coverage of collective agreements. This new agreement will be implemented through collective bargaining mainly at sector level. Workers currently earning less than €1,000 but more than €900 should see their pay increase to €1,000 by 1 January 2008. Those currently earning between €800 and €900 will get €1,000