Austria
Educational leave and part-time educational leave
Impact date: 1 April 2025 As part of the new Government’s budget measures, educational leave and part-time educational leave ended in their current form on 31 March 2025.
Although educational leave and part-time educational leave can continue to be agreed with the employer in the future, there will no longer be any state support for employees during this time. Therefore, the education allowance and the part-time education allowance concluded on 31 March 2025. However, a transitional arrangement has been established for educational leave that has already begun or is imminent. If educational leave in modules has been agreed, then open modules can be completed if an approved claim from the Public Employment Service was submitted by the end of March 2025. These regulations also apply if an agreement has been concluded by the end of February 2025 and the training begins no later than 31 May 2025.
Regardless of the cancellation of the education allowance and part-time education allowance, labour law regulations on educational leave and part-time educational leave remain in force unchanged (e.g. on special payments, holidays, severance pay).
The Government aims to establish a successor program to educational leave by the end of 2025.
Employer implications/action needed No employer action needed. Educational leave in its old form is still in force for already begun educational leaves.
Employer risk N/A
Changes to social security – early retirement
Impact date: 1 January 2026 A new draft law proposes changes to the age for the “corridor” pension (for early retirement). It will be raised quarterly in two-month increments from 62 to 63. Employees born on or after 1 April 1965 will therefore only be able to take early retirement from the age of 63. Similarly, the insurance periods required for the corridor pension will be gradually increased from 40 to 42 years. The insurance period of 42 years will apply to all those born on or after 1 October 1966. These changes will not apply to “old-age part-time” agreements that came into effect before 1 April 2025.
In addition, no unemployment insurance contributions will be paid for marginal employment carried out in addition to fully insured employment. Further, there will be no revaluation of the marginal employment threshold. It will therefore remain at €551.10 in 2026. Furthermore, sickness benefits and the assessment basis for rehabilitation and reintegration benefits will not be adjusted in 2026.
Employer implications/action needed N/A
Employer risk N/A
Employment of Ukrainian refugees/extension of the Regulation on Displaced Persons (Vertriebenen-Verordnung)
Impact date: Extended to 4 March 2026 The Mass Influx Directive (2001/55/EC) was implemented in Austria by the Regulation on Displaced Persons in March 2022. This Regulation established a temporary right of residence and facilitated access to the Austrian labour market for displaced Ukrainians until 3 March 2023. This has been extended again to 4 March 2026.
Employer implications/action needed A job platform has been created to help Ukrainian refugees find employment and to facilitate the process of employing Ukrainian refugees. Interested employers may wish to subscribe.
Employer risk N/A
Contact
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.