Collective agreements in Austria: What you should know about minimum pay, classification and more
Anyone who works in Austria will sooner or later come across the collective agreement, known in German as the Kollektivvertrag or simply KV. And for good reason: around 98% of employees in Austria who have the right to bargain collectively are covered by collective agreements. This places Austria among the countries with the highest collective bargaining coverage internationally.
In diesem Beitrag:
What is a collective agreement?
A collective agreement sets important minimum standards for employment in a particular sector. These can include minimum wages and salaries, working hours, allowances or special payments such as holiday and Christmas pay. It supplements statutory rules with provisions that apply specifically to a certain industry. Collective agreements are negotiated by the representative organisations of both sides: on the employee side, these are the trade unions; on the employer side, in many sectors they are the relevant trade associations or specialist groups of the Austrian Federal Economic Chamber. The agreed rules then apply to all employment relationships that fall within the scope of the respective collective agreement. You do not have to be a trade union member yourself for the collective agreement to apply to you.
One thing to remember: a collective agreement sets minimum standards. Your individual employment contract may contain more favourable conditions, but the minimum standards laid down in the collective agreement generally cannot simply be undercut.
Good to know:
Not everything employees may take for granted is directly regulated by law. Holiday and Christmas pay, as well as many sector-specific rules on pay and working conditions, are set out in the applicable collective agreement.
What else does a collective agreement regulate?
The exact content of a collective agreement varies depending on the sector. Typical provisions include:
minimum wages and salaries
working hours and overtime
allowances and supplements
special payments
notice periods
regulations for apprentices
paid time off for certain occasions
other sector-specific entitlements
Some rules may also differ between blue-collar workers and salaried employees. If you want to know which rights and entitlements apply to you specifically, it is always worth checking the collective agreement that applies to your employment.
The collective agreement and the construction sector
When people refer to the “construction collective agreement”, they usually mean the collective agreement for the construction trade and construction industry. There are separate collective agreements for blue-collar workers and salaried employees; the agreement for blue-collar workers also covers apprentices. These agreements apply throughout Austria to companies that belong to the Federal Guild of Construction or the Association of the Austrian Construction Industry.
However, not everyone who works on a construction site automatically falls under this collective agreement. Separate collective agreements apply to areas such as roofing, painting or timber construction. We will take a closer look at how to find out which collective agreement applies to you in the next section.
Working hours in construction
The normal working time under the collective agreement for blue-collar workers in the construction trade and construction industry is 39 hours per week. There are also special working-time models, such as alternating shorter and longer working weeks and other options for distributing working time more flexibly. These models make it possible to respond to seasonal fluctuations and the particular working conditions in the construction sector.
Wage groups and classification
The collective agreement distinguishes between different wage groups, including assistant forepersons, skilled workers, semi-skilled construction workers and construction labourers. Apprentices also have their own collectively agreed pay rates.
Which group you are classified in is important because it helps determine the minimum wage you are entitled to under the collective agreement. Salaried employees are covered by separate classification groups and salary tables.
Working on and between construction sides
Construction work does not always take place in the same location. The collective agreement therefore also contains specific rules on business travel and work away from the usual workplace. Depending on the situation, this may include daily allowances, overnight allowances or other payments. We will explain what these terms mean and where you can find them on your payslip in more detail in a later article about understanding your payslip.
Allowances and special types of work
Certain difficult working conditions and specific types of work can also be taken into account under the collective agreement. Additional rules and allowances may apply to particular activities or construction sites. This means that the collective agreement does not only regulate basic pay, but can also take account of the conditions under which the work is carried out.
Special days off
One special provision in the collective agreement for blue-collar workers in the construction trade and construction industry concerns 24 and 31 December: if these dates fall on a working day, employees are entitled to the day off while continuing to receive their pay.
The collective agreement and BUAK work together
The construction sector is also subject to special statutory rules. One important piece of legislation is the Construction Workers’ Leave and Severance Pay Act (BUAG), which is administered by the Construction Workers’ Leave and Severance Pay Fund (BUAK). BUAK is responsible for a number of special rules relating, among other things, to annual leave and severance pay in the construction sector. The collective agreement and BUAG are therefore two separate sets of rules that interact in several areas of everyday working life in construction.
Minimum wage: How much am I entitled to?
The respective collectively agreed minimum wages are shown below. The wage actually agreed with your employer may be higher. The figures listed apply from 1 May 2026.
Occupational Field | Entry-level/helper | Skilled Worker |
17,03 €/h | 19,99 €/h | |
16,50 €/h | 18,92 €/h | |
13,53 €/h | 15,30 €/h | |
15,30 €/h | 18,84 €/h | |
15,45 €/h | 18,70 €/h |
From your job to your wage group
Collective agreements divide employees into different wage or employment groups. Which group applies to you depends on the work you actually perform, the qualifications you have and the criteria set out in the relevant collective agreement. In construction, for example, you may be classified as a construction labourer, semi-skilled construction worker or skilled worker. Depending on the collective agreement, professional experience, additional skills or greater responsibility may also play a role.
Your classification is important because each group is assigned a specific collectively agreed minimum wage. As a rule, higher qualifications or greater responsibility also mean a higher wage group.
Important:
It is not only the job title written in your contract that matters. The work you actually perform must also be taken into account when determining your classification.
Employment contract and statement of terms: What goes where?
Your employment contract sets out the individual terms of your employment relationship. Employers and employees can agree on many aspects of the job, but mandatory statutory or collectively agreed minimum standards cannot be undercut.
The statement of terms and conditions of employment (Dienstzettel) records the key conditions of your employment in writing. These include, among other things, your job or duties, working hours, basic wage or salary, additional components of remuneration, any applicable classification and the collective agreement that applies to you. Since March 2024, additional information requirements have applied, including information on termination procedures, probationary periods and social insurance. These requirements also apply to employment relationships in the construction sector.
Good to know:
A statement of terms and conditions is not automatically the same as a written employment contract. However, it should reflect what was actually agreed. It is therefore worth checking details such as pay, classification and working hours carefully.
Read more:
Chamber of Labour - Collective agreements
