Wage increase lower because of pandemic

Contract wages will rise by an average of 1.2 percent this year. This is evident from an analysis by the employers’ organization AWVN of 26 collective labor agreements. At the beginning of last year, wages were expected to increase by three percent, well above inflation.

Due to the coronavirus pandemic, this increase was much lower. According to preliminary figures from AWVN, collective labor agreement wages rose by 2.4 percent over the whole of 202. The average increase in December was only 1.5 percent.

In more extensive collective agreements with many employees, wages increase less than in smaller ones. Among the 26 collective labor agreements analyzed by the AWVN, eight are on the zero line. The company also noticed a dichotomy: in companies where things are going badly, the wage increase remains low or non-existent. Meanwhile, the wage increase in companies that are doing well will exceed inflation.

In the event of no or a limited wage increase, employers will continue to provide additional benefits to employees. For instance, in the form of a higher personal budget, temporarily more days off, a form of job guarantee, or a one-off payment, says the AWVN.