DUBLIN, July 9 /PRNewswire/ --     The average wages of European workers increased significantly
between 2005 and 2006, according to the annual report on pay developments
from Eurofound's European Industrial Relations Observatory (EIRO). However,
there are considerable differences between the former EU15 countries and
twelve new EU Member States, both in terms of trends and the level of pay
increase.

The average collectively agreed nominal increases across the
European Union rose from 4.9% in 2005 to 5.6% in 2006. When adjusted for
inflation, the average collectively agreed wage increase across all 27 EU
Member States was 2.7% in 2006, up from 1.9% in 2005.

There were large differences between countries with regard to
real wage increases. In the former EU15 countries, the average increase in
2006 stood at 2.9%, up from 2.8% in 2005, while the rate of real increase
rose from 0.6% in 2005 to 0.8% in 2006. More significantly, however, the
average increase in the 12 new Member States rose from 7.5% in 2005 to
9.1%.in 2006, and the rate of real increase climbed from 3.5% to 5.2%.

'While the overall figures for the 27 EU Member States indicate
continued moderation in terms of both nominal and real pay increases in
Europe, in line with EU monetary policy, the findings in this report
regarding the twelve new EU Member States paint a different picture,' said
Jorma Karppinen, Eurofound's Director. 'However, these findings are good news
for workers in the twelve new EU Member States. The pay gap between workers
in the former EU15 and the twelve new EU Member States is closing rapidly.'

According to the findings, the overall picture in all 27 Member
States of the European Union shows ongoing moderation in real and nominal pay
increases in the former EU15 countries and an upward trend in the twelve new
EU Member States. In the new EU Member States, the average nominal pay was
3.1 times higher than in EU15 in 2006 and the real wage increase was 6.5
times higher.

In the new Member States, real pay increases varied from just 1%
in Cyprus to 16% in Latvia, indicating a wider variation range than in the
former EU15 countries. The real average increase in the new Member States
came in it at 5.2% in 2006, up from 3.5 % in the previous year.

For the former EU15 countries, the range of real pay increases in
2006 was between 2.6% in Greece and -0.1% in Germany. The real average
increase in the former EU15 countries in 2005 stood at only 0.6%, rising to
0.8% in 2006.

The annual update from Eurofound's European Industrial Relations
Observatory (EIRO) aims to provide a broad, general indication of trends in
pay increases over 2005 and 2006 across the EU Member States and Norway. The
report also examines collectively agreed pay increases in metalworking,
banking and local government, increases in minimum wage levels, increases in
average earnings, and the gender pay gap.

More information about Eurofound's research on working conditions
is available at www.eurofound.europa.eu/eiro/comparativestudies.html

Note to the editor

The European Foundation for the Improvement of Living and Working
Conditions (Eurofound - www.eurofound.europa.eu) is a tripartite EU body,
whose role is to provide key actors in social policymaking with findings,
knowledge and advice drawn from comparative research. Eurofound was
established by Council Regulation EEC No 1365/75 of 26 May 1975 and is
located in Dublin, Ireland.

The European Industrial Relations Observatory (EIRO) is
Eurofound's monitoring instrument offering news and analysis on industrial
relations in all 27 EU Member States and Norway, and at European level.

More news and information from Eurofound is available on:
www.eurofound.europa.eu

You can register for regular news and information from Eurofound
at: www.eurofound.europa.eu/press/subscription.htm