Politicians' Salaries 2027: +1 Percent After Three Zero Pay Rounds

According to the motion, those covered by the increase include the Federal President, the Chancellor, the Vice Chancellor, members of the Federal Government including State Secretaries, as well as members of the National Council and the Federal Council. The remuneration of the President of the Court of Audit and the three-person Ombudsman Board are also to rise by one percent. The adjustment thus extends beyond the executive branch to other constitutional bodies.

The parliamentary correspondence service assessed the step as the first adjustment after three zero pay rounds. In the past three years, the remuneration of the government and the Federal President had not been increased at all; for members of the National Council and the Federal Council, there had at least been an increase of half the inflation rate in 2024.

In parallel with the adjustment of politicians' pay, funding for political parties, parliamentary clubs and academies will not be increased at all over the next two years. The coalition also justifies the restrained approach with budgetary goals: "Indem die Bezüge nicht voll an die Inflation angepasst werden, leistet die Politik einen Beitrag zur Budgetkonsolidierung, heißt es in der Begründung.

What Is New Since 16 June 2026

What Is New Since 16 June 2026

Since the initial APA report of 16 June 2026, above all the parliamentary classification has firmed up: the parliamentary correspondence service confirmed on Tuesday that this is the first adjustment after three zero pay rounds. While the figure of one percent was already communicated the previous day, it is now clear that the President of the Court of Audit and the Ombudsman Board are additionally included in the step, and that funding for political parties, parliamentary clubs and academies will remain untouched over the next two years.

Background on the Remuneration Pyramid

Background on the Remuneration Pyramid

Federal politicians' salaries are set out in a so-called remuneration pyramid. "Grundsätzlich ist gesetzlich eine jährliche Valorisierung vorgesehen, wie es in dem Antrag heißt. Decisions on increases to politicians' pay at the state level are taken by the states themselves, although they often use the federal level as a point of reference.

Real Wage Loss Since 1997

Because zero pay rounds or increases below inflation have been repeatedly decided in recent years, politicians' salaries have lost a great deal of value since their introduction in 1997. The now-planned increase of one percent does not reverse this development but continues the tradition of adjustments below the inflation rate.

Real Wage Loss Since 1997

Reform Process in the Government Programme

In the government programme, ÖVP, SPÖ and NEOS have agreed to launch a process to reform politicians' pay. The motion now before parliament for the one-percent increase in 2027 is an interim step in this process, but at the same time leaves open whether and in what form the remuneration pyramid itself will be put to the test.

Reform Process in the Government Programme

Impact on the States and the Budget

Although the states decide on increases at state level themselves, they often use the federal level as a point of reference. It is therefore to be expected that a similar line will be discussed at the level of state governors, state governments and state parliaments in the coming years. The budgetary effect of the one-percent increase at the federal level is likely to remain modest, particularly since the government draft expressly refers to the consolidation contribution.

Impact on the States and the Budget

Political Assessment

Observers see the step as a signal to the public: politicians are deliberately raising their own pay below inflation and are completely foregoing adjustments to party funding. At the same time, the construction makes clear that the remuneration pyramid system has been in place for nearly three decades and that the need for fundamental reform has long been noted.

Political Assessment

The next phase of the reform process is likely to ignite over the question of how the remuneration pyramid should be shaped in future. A stronger link to the income development of the population, to an index or to objectified criteria would be conceivable. The current motion remains tight-lipped on this.

Open Questions

Open Questions

It is currently unclear how the states will respond in concrete terms, whether the remuneration pyramid will actually be put on the table as part of the announced reform process, and how the one-percent increase relates to the expected inflation rate for 2027. The timetable for the further reform process from the government programme has also not yet been specified.

The parliamentary correspondence service emphasised in its communication on Tuesday that the coalition parties submitted the motion in the National Council last week. The APA reported on the planned increase on 16 June 2026; confirmation by the parliamentary correspondence service followed on Tuesday, 17 June 2026.

Overall, it is becoming apparent that Austrian politics continues to pursue a policy of small steps with regard to its own remuneration – noticeably below inflation, but with a clear signal of restraint to the outside world. For the next two years, funding for political parties, parliamentary clubs and academies will also remain frozen.

The APA report was published on 16 June 2026; the present assessment summarises the state of reporting up to 17 June 2026. (APA, 16.6.2026)