Austrian income increase predicted

Salaries in Austria will rise this year, according to an internationally operating personnel consulting firm.Aon Hewitt said today (Weds) Austrian businesses would pay three per cent more to their staff this year than in 2010. Aon Hewitt spoke with decision-makers at 42 Austrian firms of various branches. Aon Hewitt stated around half a year ago that the average income of Austrians would rise by 2.7 per cent in 2011.These predictions may be regarded as uplifting news by Austrians since they follow revelations that the inflation reached the highest rate for more than two years last January.Statistik Austria said earlier this week that the year on year inflation soared by 2.4 per cent. The agency explained that was the highest increase since October 2008 when citizens and businesses across the world were hit by a once-in-a-generation crisis.The price for one litre of diesel car fuel was 22 per cent higher in January 2011 than in the same month of 2010, while one litre of regular car petrol jumped by 15 per cent. Higher prices of imported fruits, vegetables, coffee, tea and cocoa also fuelled the inflation in January, according to Statistik Austria.Surveys have shown people employed in Vienna rake in an average 2,298 Euros a month, slightly more than staff of firms in the western province of Vorarlberg 2,292 Euros. Employees in Upper Austria rank third with 2,243 Euros, while the Austrian average is 2,197 Euros.Aon HewittÂ’s forecast of a three per cent income increase in Austria comes after research group RegioData said it expected AustriansÂ’ spending power to improve by 2.6 per cent this year in comparison to 2010 despite lower welfare spending and higher and new taxes. RegioData explained such an improvement would mean people will have an average 450 Euros more of disposable income to spend in 2011 than in the previous year.Lower Austrian DIY equipment store chain BauMax recently cited a study showing that Austrian households have an average 34,700 Euros to spend per year.