Monday, 15 July 2013

Quicker growth in agreed pay in 2012 eroded by price hikes

Development in collectively agreed pay, annual update, July 2013

EIRO’s annual analysis of collectively agreed pay for 2012 finds that although average nominal agreed increases were slightly greater than in 2011 in many countries, the rise in prices diminished people’s purchasing power. In real terms, only a handful of countries had positive collective pay increases on average – and, if so, then very modest. In 2012, these were Sweden (+1.7%), Austria (+0.8%), Germany (+0.6%), France (+0.4%) and Belgium (+0.4%, already including indexation). In the case of Austria, this was a return to positive figures after two years of real decline on average. In countries where some form of pay indexation mechanisms are in place, the increases set via these mechanisms did – by and large (with the exception of Italy) – compensate for the rise in prices in 2012, while they had failed to do so in 2011. The report also examines collectively agreed pay increases in three selected sectors (metal, banking and local government) and developments in statutory minimum wages.

The annual update was compiled on the basis of individual national reports submitted by the EIRO correspondents. The text of each of these national reports is available below. The national reports have not been subject to Eurofound’s standard editorial process. The national reports were drawn up in response to a questionnaire and should be read in conjunction with it.

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