Viewed over the long term, Austria's productivity-related pay policy means that the trend in real earnings more or less follows the trend in overall national productivity: between 1960 and 1996 the annual growth rate of productivity was 3.1% and that of gross real earnings was 2.9%. Although during the phase of full employment in the 1970s real earnings rose more steeply than productivity (+3.3% as against +2.9% a year), since then growth in real earnings has remained below the increase in productivity (+1.3% as against +1.9%).
Owing to the increase in social charges and earnings tax, the rate of increase in net real earnings (i.e. after deduction of taxes and social charges) has been smaller (average annual growth rates of 2.7% in the 1970s, 1.4% in the 1980s and 0.2% in 1990-1996). See also deductions from pay.))