Ruqayyah Snyder
Austria is one of the few European countries without an official minimum wage. Instead, the minimum wage is set by collective bargaining agreements, which vary by sector and profession. In 2007, an agreement was signed between the Trade Union Federation and Chambers of Commerce, stipulating a minimum wage of €1,000 per month. This was updated to €1,500 in 2017, and implemented nationally by 2020. While there is no statutory minimum wage enforced by the state, sectoral minimum wages must be set at or above this amount. As of 2024, the minimum wage in Austria is around €1,500 per month, with slight variations among sectors.
Minimum Wage in Austria
| Characteristics | Values |
|---|---|
| Existence of a minimum wage | Austria has a government-mandated minimum wage. However, some sources state that there is no minimum wage or that it is not set by law. |
| Determination of minimum wage | Minimum wage is determined through collective bargaining agreements (CBAs) between trade unions and employers' associations. |
| Factors affecting minimum wage | Industry, occupation, age, experience, region, and sector. |
| Penalty for non-compliance | Employers that don't comply with the minimum wage face severe fines. A company with more than three employees could be fined €2,000-€20,000 for a first offense and up to €50,000 for a repeat offense. |
| Average salary | The average net annual salary in Austria is €42,550 per year or €3,546 per month. |
| Cost of living | The monthly cost of living in Vienna is €1,717, higher than in other Western European capitals. |
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What You'll Learn
- Minimum wage in Austria is set by collective bargaining agreements, not the state
- These agreements cover almost all employees across all industries
- The lowest wage across sectors is around €1,700 gross per month
- Employees posted to Austria from abroad are entitled to minimum wages
- Location impacts salary levels, with urban centres tending to offer higher wages
Minimum wage in Austria is set by collective bargaining agreements, not the state
Unlike other EU member states, Austria does not have a statutory minimum wage set by the state. Instead, it is one of the few countries where minimum wages are established through collective bargaining agreements, which are negotiated between employer organisations and sectoral unions. These agreements are binding on all employers and employees within the respective sectors.
Austria has over 800 collective agreements, covering around 95%-98% of employees. These agreements set minimum wages that vary by sector and are based on factors such as training, professional experience, and industry. For example, the agreements distinguish between career years and years in a particular job group when determining the specific minimum wage for an employee. The metalworking industry often leads the way in wage negotiations, with other sectors following its example.
The collective agreements also outline standard employment terms, such as working hours, leave entitlements, and conditions outlined in employment contracts. Employers must specify which collective agreement applies to a particular employment relationship in the employment note or contract, and they are obliged to display the applicable agreement at the place of work.
While Austria does not have a national minimum wage, it has introduced updated minimum salary levels for various work permits for foreign workers in 2025. For example, the salary threshold for the Red-White-Red Card increased to €3,225 per month, while EU Blue Card holders must now earn a minimum of €3,678.57 per month. These changes are in line with other countries, such as Lithuania, Luxembourg, and the UK, which have also raised their minimum wage levels in recent years.
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These agreements cover almost all employees across all industries
Unlike many other EU countries, Austria does not have a national statutory minimum wage. Instead, the country has a strong tradition of collective bargaining agreements (Kollektivverträge) that set minimum wages according to sector. These agreements cover almost all employees across all industries.
The Austrian Federal Economic Chamber (WKO) and the Austrian Trade Union Federation (ÖGB) have agreed that the minimum wage in collective agreements should be €1,500 gross per month. However, most collective agreements already provide for minimum wages of at least €1,700 gross 14 times a year, resulting in an average monthly wage of €1,983 gross. In 2024, the Austrian minimum wage was €1,766.92 per month before taxes for full-time work. The lowest wage across sectors is around €1,700 gross per month as of recent agreements.
The actual minimum wage to which an employee is entitled under a collective agreement is determined by categorising the employee in an occupation or function group of the wage scale of the collective agreement applicable to the employment relationship. These agreements are legally binding and can be enforced before the labour and social court. Employees whose employers are based abroad are also entitled to the remuneration under the collective agreement that is due to comparable employees of comparable employers at the place of work.
Collective agreements cover a wide range of sectors, including the production and working of brushes and paintbrushes, the processing and packaging of chemical products, the manufacture or processing of wooden products, the production or working of wickerwork and raffia products, the production or working of handicraft articles, and the production or processing of goods made of plastic. Minimum wage rates are also specified for caretakers and facility managers in various regions, and as of 2013, a minimum wage rate for housekeepers and domestic workers was introduced for the whole of Austria.
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The lowest wage across sectors is around €1,700 gross per month
Unlike many other EU countries, Austria does not have a national statutory minimum wage. Instead, the minimum wage is set according to the sector through collective bargaining agreements (Kollektivverträge). These cover almost all employees across all industries. The Austrian Federal Economic Chamber (WKO) and the Austrian Trade Union Federation (ÖGB) have agreed that the minimum wage in collective agreements should be €1,500 gross per month. However, most collective agreements already provide for minimum wages of at least €1,700 gross 14 times a year, resulting in an average monthly wage of €1,983 gross. The lowest wage across sectors is around €1,700 gross per month.
The exact amount varies based on factors like industry, occupation, age, experience, and region. For instance, the minimum wage in Austria in some fields is:
- €1,766.92 per month before taxes for full-time work
- €153.83 per day for full-time workers
- €19.23 per hour for full-time workers
- €1,983 gross per month for employees covered by collective agreements
If you're moving to Austria for work, it's best to check the collective agreement for your sector to see the applicable minimum wage. The Österreichischer Gewerkschaftsbund (ÖGB) website provides information on the collective bargaining minimum wage by industry. Employees whose employer is based abroad are entitled to the remuneration under the collective agreement that is due to comparable employees of comparable employers at the place of work. Employees posted or leased/assigned to Austria are also entitled to minimum wages under collective agreements.
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Employees posted to Austria from abroad are entitled to minimum wages
Unlike other EU member states, Austria does not have a statutory minimum wage. Instead, the country's minimum wages are established in collective agreements, almost exclusively at the sectoral level. These collective agreements are binding on all employers and employees who are members of the signatory organisation. While there are no collective agreements for some sectors, such as advertising, communication, beauty, and waste management, about 95%-98% of employees throughout Austria are covered by these agreements.
The collective agreement minimum wage may not be undercut by an employment contract or works agreement. It is directly legally binding and can be enforced before the labour and social court having jurisdiction. The term "collectively agreed minimum wage" refers to the minimum remuneration that must be paid to employees according to the respective collective agreement. The amount of the specific minimum wage under the collective agreement depends on factors such as training, professional experience, industry, or company structure.
In January 2025, Austria updated its minimum salary levels for various work permits. For the Red-White-Red Card, the salary threshold increased to €3,225 per month. For EU Blue Card holders, the minimum is now €3,678.57 per month, while super key employees must earn at least €7,740 per month. These changes affect all foreign nationals who must be paid at least the minimum wage.
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Location impacts salary levels, with urban centres tending to offer higher wages
Austria does not have a national statutory minimum wage. Instead, minimum wages are set according to sector through collective bargaining agreements (Kollektivverträge). These cover almost all employees across all industries. Most collective agreements already provide for minimum wages of at least €1,700 gross 14 times a year, resulting in an average monthly wage of €1,983 gross. The lowest wage across sectors is around €1,700 gross per month.
Findings such as these have contributed to the view that urbanization can be a positive contributor to human well-being. However, it is important to note that inequality in resource distribution tends to increase with time and development. Thus, while larger cities may bring higher average wages, they may also exhibit higher levels of inequality.
In the context of Austria, it is worth noting that the country has stringent labor laws and a rigid and formal business culture. As such, if an individual's salary does not meet the appropriate minimum wage, they may have legal recourse, which can be pursued through the courts.
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Frequently asked questions
Unlike many other EU countries, Austria does not have a national statutory minimum wage. Instead, minimum wages are set according to sector through collective bargaining agreements. These cover almost all employees across all industries. The actual minimum wage to which an employee is entitled is determined by categorising them in an occupation or function group of the wage scale of the collective agreement applicable to their employment relationship.
Most collective agreements already provide for minimum wages of at least €1,700 gross 14 times a year, resulting in an average monthly wage of €1,983 gross. The lowest wage across sectors is around €1,700 gross per month. The median salary in Austria is about €3,422 per month before taxes.
Around 95% of employees throughout Austria are covered by collective agreements. Employees whose employer is based abroad are also entitled to the remuneration under the collective agreement that is due to comparable employees of comparable employers at the place of work. Employees posted or leased/assigned to Austria are also entitled to minimum wages under collective agreements.
The Austrian minimum wage in 2024 is €1,766.92 per month before taxes for full-time work. Most agreements factor in 14 paychecks a year, which includes extra bonuses given in June and December.
