Labor law (AT)
Collective agreement (Kollektivvertrag)
Also: KV · collective agreement (Kollektivvertrag) · collective agreement salary
A collective agreement is an industry-wide binding agreement between a union and an employers' association (usually WKO). It primarily sets minimum salaries, bonuses, and working time regulations. In Austria, around 98% of employees are covered by it.
Key Points
- Binding industry agreement between union and employers' association – it automatically applies, regardless of the individual employment contract.
- The most important salary floor in Austria: a minimum salary for each industry and usage group that must not be undercut.
- In addition to the minimum salary, it regulates details like 13th/14th salary, allowances, advancements, and notice periods.
- It is renegotiated annually in the collective agreement rounds, causing the minimum salaries to change regularly.
- Approximately 98% of employees are covered; the difference between the collective agreement minimum and the actual salary is called an overpayment.
What is a collective agreement?
The collective agreement is the most important salary floor in Austria. It is concluded between a collective agreement-eligible representation of employees (usually the Austrian Trade Union Federation) and the employer side (mostly the Austrian Economic Chamber) and applies to an entire industry. It specifies a minimum salary per usage group that a company cannot undercut.
What makes the Austrian system special is its extensive coverage: Since mandatory membership in the Economic Chamber includes businesses, around 98% of employees are protected by a collective agreement. Therefore, a collective agreement automatically applies to all companies in the industry, regardless of individual employment contract terms – a contract can be more favorable, but not worse (principle of favorability).
What does the collective agreement specifically regulate?
- Minimum salaries per usage group and career years (the collective agreement scheme).
- Bonuses such as the 13th and 14th salary (vacation and Christmas pay).
- Allowances, premiums, and advancements with increasing service time.
- Working time regulations, overtime compensation, and some notice periods in detail.
The actual salary paid (actual salary) often exceeds the collective agreement minimum. This difference is called an overpayment and is the main negotiation field. It depends on qualification, experience, responsibility, and market conditions.
Why the collective agreement matters for candidates
Starting point of any salary negotiation
The collective agreement minimum salary must be stated in the job ad (salary disclosure obligation under § 9 GlBG). It is the starting point for any salary negotiation – what is negotiated is the overpayment above that. At voccess, the collective agreement minimum is transparent in the ad to ensure the negotiation starts on a common basis.
Knowing the appropriate collective agreement and usage group helps verify if an offer is market-oriented. A common mistake is underclassification: What matters is the actual job performed, not the job title.
Frequently Asked Questions
- Does the collective agreement apply even without being mentioned in the employment contract?
- Yes. The collective agreement has normative effect and automatically applies to all companies in the industry. It does not need to be explicitly mentioned in the employment contract to be applicable.
- Can an employment contract pay less than the collective agreement?
- No. The collective agreement is the floor. A contract can only be more favorable, according to the principle of favorability; undercutting the collective agreement minimum salary is invalid and leads to back pay claims.
- Why do collective agreement minimum salaries change every year?
- Because the collective agreements are renegotiated annually during the collective agreement rounds, usually considering inflation and industry conditions. The new values apply from the effective date set in the collective agreement.
Note: This entry provides an overview to the best of our knowledge (as of: July 2026) and does not replace legal advice. Binding information is provided by the Chamber of Labour and the relevant trade union.