Industry on non-wage labor costs: Massive reduction in non-wage labor costs necessary

2024-01-03 13:23:04

IV-GS Neumayer: High burden of additional labor costs threatens Austria as a work and industrial location – reduction is urgently needed

Vienna (OTS) – “The current structure of the Austrian tax and contribution system places an above-average burden on the labor factor. This has an inhibiting effect on growth and creates false incentives for people to actively participate in the value creation process. What is needed now is a massive reduction in non-wage labor costs,” emphasizes Christoph Neumayer, General Secretary of the Industrial Association (IV), on the occasion of the current discussion.

According to Eurostat, non-wage labor costs in Austria in 2022 were more than 3 percentage points higher than in Germany and also significantly above the EU average. For example, the unemployment insurance contribution, which has been 5.9 percent in Austria since January 1, 2024, is more than twice as high as in Germany. “We must use all potential and implement an urgently needed reduction in non-wage labor costs. The fact is that action must be taken quickly so that the workplace and industrial location remains competitive, otherwise there is a risk of significantly higher unemployment. Blockade attitudes have no place here,” concluded Neumayer.

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Marlena Mayer
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