
In the past decades, the incomes of Austrian employees and workers have risen at similar rates. Between 2004 and 2023, workers’ salaries increased by an average of 2.5% annually, while the salaries of employees grew by 2.6%, according to a report published by the Court of Auditors on Thursday. However, when adjusted for inflation, real wage growth has been negative in recent years, especially for lower-income earners.
Looking at median gross income figures, public sector employees earned more than both employees and workers, but the growth rate for public sector wages (2.3%) was slower. While nominal wage growth for employees and workers is relatively similar, the income gap remains significant. In 2023, the median gross annual income for workers was €26,426, while employees earned €40,160, a significant difference.
Despite progress, the gender income gap remains largely unchanged. Although median incomes for women have increased more rapidly than for men, the relative income disparity has barely changed. In 1998, women earned 60.6% of the median income of men, and by 2023, this had only risen to 66.4%.
The report also highlighted that higher incomes have generally seen more substantial increases than lower ones. The bottom 10% of earners saw a nominal increase of 42% since 1998, whereas the top 10% saw an impressive rise of 82%. However, since 2015, trends such as collective bargaining increases in minimum wages since 2017 have countered some of this disparity.
According to the report, real losses were seen in the lowest income brackets, as inflation was not offset by wage increases. Using the median gross income of 1998 as a reference point, the report shows that by 2023, earners in the bottom wage bracket were earning only 78% of the income they earned in 1998. In contrast, higher earners have seen their wages fully adjusted for inflation. Overall, the decline in real income is most noticeable in the lower income groups.
The industry also plays a significant role in determining income levels. The highest gross annual incomes were found in the energy sector (€66,292), the financial and insurance sectors (€55,402), and information and communication (€52,469). On the other hand, the lowest incomes were found in the accommodation and gastronomy sector (€15,166) and the arts, entertainment, and recreation sector (€19,520).