Inflation – will it affect this autumn’s salary review?
Inflation is a factor that is often taken into account during negotiations on new central salary agreements and increases. Central parties also consider the fact that Sweden has a well-functioning salary-setting culture. However, public authorities do not take inflation into consideration when determining how they will use their budget to accommodate salary increases.
The current central government agreements started in 2020 and last for three years, ending in 2022. Therefore, no central negotiations will take place until 2023.
Why is the autumn salary review not influenced by Sweden’s rate of inflation?
Salaries are not increased to compensate for inflation, instead they are increased to stimulate organisational development and recruit and maintain skills.
The central agreements do not contain anything to support salary increases to compensate for inflation, nor is there anything in any of the central collective bargaining agreements. Furthermore, there are no individual guarantees.
Inflation is not a parameter for setting salaries, and it is not linked to why an employer pays salaries or chooses to increase them.
Employers set salaries based on other criteria, and these are based on performance that has contributed to attaining organisational goals, meeting the needs of the organisation, and skills provision. Hence, the rate of inflation in Sweden will have no direct influence on the autumn’s salary review.