EIRO’s annual analysis of collectively agreed pay for 2012 finds that although average nominal agreed increases were slightly greater than in 2011 in many countries, the rise in prices diminished people’s purchasing power. In real terms, only a handful of countries had positive collective pay increases on average – and, if so, then very modest. In 2012, these were Sweden (+1.7%), Austria (+0.8%), Germany (+0.6%), France (+0.4%) and Belgium (+0.4%, already including indexation). In the case of Austria, this was a return to positive figures after two years of real decline on average. In countries where some form of pay indexation mechanisms are in place, the increases set via these mechanisms did – by and large (with the exception of Italy) – compensate for the rise in prices in 2012, while they had failed to do so in 2011. The report also examines collectively agreed pay increases in three selected sectors (metal, banking and local government) and developments in statutory minimum wages.