Have you ever wondered why you can afford less despite wage increases? The reason is real wages. According to the International Labor Organization (ILO), these have slipped worldwide due to inflation and last year’s weak GDP growth – and for the first time this century.
Wages cannot keep pace with steadily rising consumer prices. That means less purchasing power despite higher salaries.
The figures are based on data from Numbeo, the world’s largest cost-of-living database. All amounts have been converted from US dollars to euros.
Austria: Average €28,290
There is no statutory minimum wage in Austria. However, workers are protected by so-called collective agreements. In May this year, the net minimum wage rose to €1,383 per month for a 35-hour week. However, even Austria is not immune to inflation, which remained at 7.4 percent in August.
According to the OECD, real wages in Austria fell by 4.3 percent between Q1 2022 and Q1 2023, further eroding workers’ purchasing power. Another nation where nearly half the populace rents housing has also experienced a housing crisis. Following a series of rent increases over the past two years, the opposition demands that the government immediately implement a rent brake.
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