Senior Representatives Put Pressure on Pension Increases
The negotiations on pension increases for the next year are currently taking place within the coalition. On Monday, the parliamentarians met in the High House. An agreement between the three parties could be announced in the coming days, although the talks could also continue until next week. A staggered conclusion is expected, which compensates for inflation for recipients of lower pensions.
Stocker Initiated Debate on Pension Increases
The debate was really started exactly a week ago when Chancellor Christian Stocker (ÖVP) declared in the ORF "Summer Talk" that an adjustment below the relevant inflation rate would be desirable. "Two percent would be the target value," he stated in the interview. This would mean the increase is significantly below the preliminary inflation rate of 2.7 percent. The final value, which can only bring minimal change, will of course be presented by Statistics Austria next week. Originally, the Ministry of Social Affairs planned to start negotiations only then.
Pension Increases: SPÖ Wants to Protect Low Pensions
While the NEOS welcomed the announcement by the ÖVP chairman, some parts of the SPÖ were a little displeased. The Social Democrats want at least the inflation to be fully compensated for lower pensions. According to reports, this is also the direction of the internal coalition negotiations. One could, for example, start with an average old-age pension. Last year, this amounted to 1,594 euros for women and 2,321 euros for men. In any case, minimum pensioners should receive compensation for inflation. The compensatory allowance for singles is currently 1,274 euros, and for couples, it is 2,010 euros.
Vienna's Mayor Michael Ludwig (SPÖ) holds little of a pension adjustment below the inflation rate: "Everyone knows the federal budgetary situation and will understand that pensions are not adjusted above the inflation rate. But I believe they should not be adjusted below the inflation rate either," Ludwig explained on Monday in the "ORF-Wien heute" interview. The older generation has "earned it." Additionally, it is "economically important that the older generation has the opportunity to bring this money into the market," said Ludwig.
Meinl-Reisinger Also Addresses Civil Servant Salaries
NEOS leader Beate Meinl-Reisinger said at a press conference at the Foreign Ministry on Monday that "the talks are on a good path." The aim is to reduce inflation next year to below two percent, as agreed by the government, and this is "a nationwide effort." It is not just about pensions. For example, she would "see in relation to civil servants that they make a contribution," said Meinl-Reisinger, referring to the increase in civil servant salaries that was decided by the outgoing turquoise-green government for the years 2025 and 2026.
More Than Two Billion at Stake with Pension Increases
The think tank Agenda Austria, however, warned against a staggered approach, as it would mainly benefit those groups that have already fared better in recent years. Even with a zero-wage round, pensioners with a monthly gross pension of up to around 1,700 euros would still be above the pension level they would have been entitled to after the statutory adjustment. If pensions are only increased by the statutory adjustment factor next year, i.e., by 2.7 percent, it will cause additional costs of 2.8 billion euros each year. The government, on the other hand, assumes only 2.1 billion.
Waiting for Civil Servant Negotiations
The second major issue for the government in the fall is civil servant salaries. A legislative decision from the previous year guarantees public employees an inflation compensation plus 0.3 percent for 2026. This would likely result in an increase of over three percent. The government hopes that the union will still be willing to make concessions in social partner negotiations. An invitation to these could reportedly be issued this week.
(Editorial notes: Graphic 1141-25, Format 88x120 mm) bei/hac/jeg
This article has been automatically translated, read the original article here.