Collective agreement on the social economy: Income increases, important improvements in framework law
In the fifth round of negotiations for the 130,000 employees in the private health, social and care sector (social economy), the trade unions GPA and vida were able to reach an agreement after 17 hours of negotiations.
With the conclusion , income increases for 2026 and 2027 as well as a comprehensive package of improvements to the framework law will be agreed. The Austria-wide strikes planned for this week have thus been cancelled.
The key points of the collective bargaining agreement at a glance
From April 2026
- +2.6 percent on collectively agreed salaries and wages
- +2.4 percent on actual salaries and wages
- +2.6 percent for supplements, allowances and apprenticeship remuneration
Improvements in the framework law:
- Right to top up in the event of continuous overtime
- Extended care leave for parents of children with disabilities
- Recognition of military and civilian service as previous periods of service
- Adaptation of partial retirement to the new legal regulations
From January 2027
- Salaries and wages under collective agreements will increase by at least 2.3 percent in line with inflation
- If inflation is above 2.3 percent, half of the difference will be compensated
- Cap at a maximum of 2.5 percent
- The same regulation applies to allowances, surcharges and apprenticeship remuneration
- In any case, actual salaries and wages will increase by 2.3 percent
Additional:
- In future, shared shifts may only be regulated by works agreement (provided that a works council exists)
- Overtime is better paid
- The care subsidy will be continued via an additional KV
Better classifications for certain occupational groups
In the future, sub-sectors of disabled professionals and kindergarten assistants will benefit from improved classifications – an important step towards upgrading these often overlooked activities.
Termination only possible by pressure from below
From vida's point of view, the pressure of the employees was decisive.
"We would like to thank the thousands of employees who, with their commitment to works meetings and strikes, were finally able to generate movement among the employers after five rounds of negotiations. The union negotiating team considered the employers' options to have been exhausted. In view of the economic situation, this agreement is the maximum that could be achieved."Verhandlungsleiterin der Gewerkschaft vida
Eva Scherz, negotiator of the GPA, emphasizes:
"This agreement brings noticeable progress in the framework law, but is a hard compromise on the income side. Without the strong mobilization in two rounds of strikes, no conclusion would have been possible."
No reason to cheer – but a result with substance
The agreement secures purchasing power in the short term, brings tangible improvements for part-time employees and strengthens workers' rights in everyday life. At the same time, it remains clear that contracts below inflation are not an option in the long term. The disputes of the past few weeks show once again that progress in the social economy is not given for free – but fought for.
KV degree in social economy – the most important questions & answers
For around 130,000 employees in the private health, social and care sectors.
from April 2026:
2.6% on collective bargaining salaries and wages
2.4% on actual salaries
from January 2027:
minimum +2.3%, maximum +2.5% (depending on inflation)
If inflation is above 2.3%, half of the difference is compensated - not full compensation, but protection to the downside.
Yes. In the event of continuous overtime , there will be a right to an increase in the future.
- Better care leave for parents of children with disabilities
- Military and civilian service count as previous service periods
- Partial retirement will be adapted to new legal rules
- Overtime is better paid
Shared services need a works agreement – if there is a works council. This strengthens co-determination in the company.
Yes. The care subsidy will be continued via an additional collective agreement.
Because without massive mobilization and two rounds of strikes , there would have been no offer on the table. The degree is not a gift, but the result of pressure.
No reason to rejoice – but real improvements, secured purchasing power and a clear signal: nothing moves without us.
