Who actually belongs to Austria’s much debated middle cl*** and what level of income and living standards do people need to belong to this group?
Austria’s middle cl*** often features in political debates about fairness, taxes, and the cost of living. But who is actually part of this group, and how stable is it?
According to the latest EU-SILC report for 2023, around 6.9 million people, or 77 percent of Austria’s population, are part of the middle cl***. Almost 20 years ago, when the study was first conducted in 2004, the proportion was similarly high at 78.9 percent.
READ ALSO: How ‘rich’ is Austria’s middle cl***?
How is middle cl*** defined in Austria?
The Austrian Institute of Economic Research (WIFO) uses the same definition as the EU-SILC report: households earning between 60 percent and 180 percent of the median income are considered middle cl***. In 2024, Austria’s median net income was €48,303 per year.
This means the middle cl*** includes:
- Single adults earning between €1,660 and €4,980 per month
- Two-adult households earning between €2,490 and €7,480 per month
- Single parents with two children earning between €2,660 and €7,970 per month
- Two adults with one child earning between €2,990 and €8,970 per month
- Two adults with two children earning between €3,488 and €10,460 per month
Households earning below these ranges are considered at risk of poverty, while those above are cl***ified as high income. The income calculation includes salaries, pensions, social benefits, and investment income after tax deductions, but does not count ***ets such as property ownership.
READ ALSO: EXPLAINED: Why it’s worth filling in your annual tax return in Austria
Is Austria’s middle cl*** shrinking?
Despite warnings in recent years, economist Silvia Rocha-Akis from WIFO told ORF Topos that Austria’s middle cl*** has remained stable by definition. However, she notes that the data only examines income distribution relative to others, not actual living costs.
“This feeling that the middle cl*** is shrinking isn’t reflected in the data – but it still needs explaining,” Rocha-Akis said. She said spending on essential goods, such as housing, energy, food, education, and health, has increased faster than incomes for many middle-income households.
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Who is most under pressure?
The composition of Austria’s middle cl*** has changed over time.
Rocha-Akis noted that younger generations are finding it increasingly difficult to stay in or enter the middle cl***. Households with main earners under 35 years old, especially those with children, are more likely to be in the lower income group than in previous decades.
Single-person households are also growing, as is the urban population; however, the proportion of middle-cl*** residents has declined in larger cities. For households with children, access to affordable childcare remains crucial, as women are still predominantly responsible for childcare.
Rocha-Akis stated that expanding high-quality childcare and education services is crucial for the financial stability of these households.
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Why is Austria’s middle cl*** still stable overall?
The stability is partly due to demographic shifts. Older working-age groups are growing within the population, and they tend to work longer and enjoy better wage development.
More women in these age groups are also working, resulting in an increase in two-person households with dual incomes or higher pensions, which offsets declines in other groups.
However, Rocha-Akis highlighted a trend towards delayed financial security for younger people.
Higher qualification requirements mean people enter the labour market later, often spending longer in unstable employment. This makes saving for a home, for example, more difficult than it was decades ago.
Between 2004 and 2024, Austria’s home ownership rate fell slightly from 50.3 percent to 47.9 percent, according to Statistics Austria.
READ ALSO: EXPLAINED: Why is Austria so wealthy?
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How does Austria compare with Germany?
In Germany, the middle cl*** has shrunk significantly over the past few decades. The proportion fell from 70 percent in 1995 to 64 percent in 2018, according to a study by the Bertelsmann Stiftung. Most of this decline happened before 2005, and Germany’s middle cl*** has not recovered since.
While Austria’s middle cl*** appears stable on paper, Rocha-Akis warns that real financial pressures could rise in the coming years, especially as government austerity measures affect lower and middle-income households.
