Civil Servant Health Insurance Agreement: This Applies Until 2028

Between January 2026 and the end of June 2026, there will be no salary increase. From July 2026 to July 2027, the salary will increase by 3.3 percent, according to Civil Servants State Secretary Alexander Pröll (ÖVP) regarding the civil servants' collective bargaining agreement. In the period from August 2027 to August 2028, as well as from September to the end of 2028, salaries will be increased by 1 percent each. This corresponds to an average increase of 1.5 percent. Before reopening the previously completed package, a 3.3 percent increase was planned for the entire year 2026. For the year 2026, this now means a saving of over 310 million in 2026, according to the federal government.

Pröll on Civil Servants' Collective Bargaining Agreement: "Extraordinary Efforts" in "Extraordinary Times"

Both Pröll and Finance Minister Markus Marterbauer (SPÖ) and NEOS negotiator Martina von Künsberg Sarre expressed high satisfaction after the conclusion of the negotiations - as did the union's chief negotiators Eckehard Quin (GÖD/Civil Servants) and Christian Meidlinger (younion/Municipal Employees). Pröll spoke of a "historic step," as it was the first time it was possible to reopen an existing agreement for the public service. In "extraordinary times," "extraordinary efforts" are needed, he said.

"I believe this agreement is a great success for Austria," Marterbauer also emphasized. The "Austrian model" has once again shown that it is "capable of action." Künsberg Sarre pointed to the approximately 310 million savings for 2026 and emphasized that the budget consolidation is not yet complete.

Union after Civil Servants' Collective Bargaining Agreement: "Social Partnership is Alive"

For Quin, the signal is "very clear": "The social partnership is alive," he said. A "viable compromise for both sides in a difficult situation" was found - and there will be no zero wage rounds in 2027 and 2028. "I believe that under the given budgetary conditions, this is something that can be showcased." Regarding the social gradations in salaries, it is not about one-time payments, but the salaries will be increased by a fixed amount, which is, however, designed to be degressive.

Meidlinger also considered the agreement a "strong sign of life for the social partnership." There is thus "no unilateral reopening." And it was also achieved that "in 2027 and 2028, with the increases, we show a clear social signature by significantly increasing smaller and lower incomes more than higher incomes."

Renegotiation of Civil Servants' Collective Agreement Due to Precarious Budget Situation

The already fixed increase was renegotiated at the request of the government, the reason being the precarious budget situation. Originally, it was planned that public employees would receive an increase of 0.3 percentage points above inflation in 2026. This would have been the mentioned approximately 3.3 percent for the entire year 2026.

The difficult situation had its roots already in the previous year, when the union approved a settlement of 3.5 percent for 2025, which was 0.3 percentage points below inflation - but in return secured a legal guarantee that this loss would be compensated in 2026.

However, due to the budget situation, the government now needs money and appealed to the union to contribute to budget consolidation. To clarify: an increase of one percent for civil servants costs approximately 190 million euros, according to estimates. As a means of pressure, the government indirectly threatened the civil servants with zero wage rounds in the following two years if no agreement for 2026 was reached.

Civil Servants' Collective Agreement Reached After Just One Week of Negotiations

Thus, the renegotiation of civil servants' salaries was completed quite quickly. After a cautious initial contact in mid-September, official negotiations began just over a week ago. Until the last moment, it was unclear whether a quick agreement would be reached, but by Tuesday evening it was time, and an invitation was extended to the Chancellery to announce the result. This new regulation also creates planning security, according to a statement from the federal government - both for employees and for the public sector.

(APA/Red)

This article has been automatically translated, read the original article here.