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Austria - Minimum Wages - 2011


LAST UPDATE

30 November 2011

SOURCES


Name of Act

Collective Agreement for Workers in the Iron- and Metalworking Industry 2009,
(Kollektivvertrag fuer Arbeiter im Eisen- und Metallverarbietenden Gewerbe), 1 January 2009.

Name of Act

Collective Labour Relations Act,
(Arbeitsverfassungsgesetz), Federal Official Gazette No. 22/1974, last amended in Federal Official Gazette (Bundesgesetzblatt) No. 77/2007.

Name of Act

Minimum Wage Rate for Social Services,
M 5/2005/XXII/96/3, 1 January 2006.

Name of Act

General Agreement on a Minimum Wage of 1,000 Euro,
(Grundsatzvereinbarung zum Mindestlohn von 1.000 Euro), 2 July 2009.

Name of Act

Collective Agreement for Workers in the Iron- and Metalworking Industry 2008,
(Kollektivvertrag fuer Arbeiter im Eisen- und Metallverarbietenden Gewerbe), 1 January 2008.

LEGAL DEFINITIONS


Minimum wage

The minimum wage rate (Mindestlohntarif) comprises the minimum effectively paid wages (Mindestentgelde) and the minimum allowances for expenses (Mindestbeträge für den Ersatz von Auslage) fixed by the Federal Arbitration Board for a particular sector.
Collective Labour Relations Act §22(1)

MINIMUM WAGE FIXING


Procedure


Procedure in general

Austria has a dual system for setting minimum wages: Collective agreements dominate the wage setting. The government has set minimum wages for certain sectors.

Minimum wages set directly by tripartite negotiations

A minimum wage rate may be determined by a specialized body - the Federal Arbitration Board - for groups of workers for whom a collective agreement cannot be agreed, 1) because no body capable of negotiating a collective agreement exists on the side of the employer, and 2) insofar as an arrangement about minimum salaries and minimum amounts for compensating expenses has not been achieved by declaring a collective agreement statutory.
If a workers’ body capable of negotiating a collective agreement requests it, the Federal Arbitration Board (Bundeseinigungsamt) must set a minimum wage rate after consulting the heads of the provincial governments that will fall within its spatial scope.
The Board consists of one chairperson and at least 2 representatives each of the employees and employers.
Special consideration has to be given to the proportionality and to the way wages are calculated in related economic branches.
Collective Labour Relations Act §22-25, 141, 142

Minimum wage set through decentralized collective bargaining

Wage rates are mostly fixed in collective agreements.

In 2007, the Austrian Federation of Trade Unions and the Chamber of Commerce signed an agreement, which obliges the social partners to increase the minimum wage in sectoral collective agreements to at least 1,000 Euro (gross) by 2009 (1.167 Euro including special allowances like christmas pay). This agreement covers the sectors for which the Economic Chamber and the Federation of Trade Unions jointly negotiate collective agreements, excluding the liberal professions, independent contractors and employees employed e.g. by associations.
General Agreement on a Minimum Wage of 1,000 Euro

Coverage


Scope

Minimum statutory wage rates currently (July 2009) exist for the following sectors: janitors, household help/domestic workers, private education, social services, home help and geriatric care, au-pair service and private child care.

Collective agreements bind all employers who are members of the signatory organisation and apply to all workers employed by them, both unionised and non-unionised. The Federal Arbitration Board - a permanent tripartite body affiliated to the Ministry of Economic Affairs and Employment - may issue extension orders, making collective agreements apply to sectors of the same nature which have not signed an agreement, at the written request of an employers’ or workers’ organisation provided that the collective agreement has prevailing importance in the relevant field of industrial relations, the working conditions in the extension order must be essentially the same as those in the collective agreement; and the working conditions covered in the extension must not be governed by another collective agreement. Extensions have only been applied in Austria in for very limited occupations.
Collective Labour Relations Act §12(1), 18
http://www.bmsk.gv.at/cms/site/liste.html?channel=CH0787#

Coverage rate

It is estimated that 98%-99% of the workers are covered by a collective agrement.

Excluded categories


» Sectors

Sectors excluded from the regulations of the Collective Labour Relations Act are: agricultural workers, home workers, and public servants.
Collective Labour Relations Act §1

Specific minimum wage rates


» Specific minimum wage by occupation

Statutory minimum wage rates may stipulate different minimum wages for different types of work within a sector; e.g. the minimum wage rate for social service workers distinguishes 7 different occupational groups.

Collective agreements determine the occupations that they are intended to cover.
Collective Labour Relations Act §22-25
Minimum Wage Rate for Social Services §2.2
see e.g. Collective Agreement for Workers in the Iron- and Metalworking Industry 2009

» Specific minimum wage by sector

Statutory minimum wage rates are set for different sectors (see scope).
Additionally, minimum wage rates are determined in sectoral collective agreements.
Collective Labour Relations Act §22-25

» Specific minimum wage by region

Statutory minimum wage rates may be set either for the entire country or only for specific regions. The minimum wage rates for janitors and household staff distinguish 9 different regions; the other minimum wage rates cover the entire country.

Collective agreements may apply nation-wide or determine a specific regional application.
Collective Labour Relations Act §25
see e.g. Collective Agreement for Workers in the Iron- and Metalworking Industry 2009
http://www.bmask.gv.at/cms/site/dokument.html?channel=CH0666&doc=CMS1233500068346
http://www.bmsk.gv.at/cms/site/liste.html?channel=CH0787

» Minimum wage levels for specific categories of workers


» Trainees

Specific statutory minimum wage rates may be set for trainees (Lehrlingsentschadigung) in specific sectors.
Collective agreements may foresee specific rates for trainees.

» Piece-rate workers

The Collective Agreement for Workers in the Iron- and Metalworking Industry provides that piece-rates are to be determined in a way that the average qualified workers working at normal speed can earn the wage of his respective wage group.
Collective Agreement for Workers in the Iron- and Metalworking Industry 2009

» Other categories

Statutory minimum wage levels differ according to the length of employment. The longer the worker has worked in the same job, the higher the minimum wage will be.

Level


Minimum wage level(s) in national currency

since 1 January 2009: EUR 8,68 per hour, EUR 1453,03 per month (unskilled worker in the Iron- and Metalworking Industry)

since 1 January 2008: EUR 8,36 per hour, 1399,46 EUR per month (unskilled worker in the Iron- and Metalworking Industry)
Collective Agreement for Workers in the Iron- and Metalworking Industry 2009
Collective Agreement for Workers in the Iron- and Metalworking Industry 2008
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Last minimum wage update

1 January 2009
Collective Agreement for Workers in the Iron- and Metalworking Industry 2009

Enforcement mechanisms


Fines in national currency for non-respect of legislation

Fines for infringements of the Collective Labour Relations Act are set at a maximum of 2,180 euro.
Collective Labour Relations Act §§160 and 207

Results generated on: 22nd July 2014 at 17:39:06.
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