Austria
Changes to social security – early retirement
Impact date: 1 January 2026 From 1 January 2026 onwards, the eligibility requirements for the corridor pension will change. The earliest possible retirement age 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
Partial retirement
Impact date: 1 January 2026 Partial retirement can be taken if the requirements for an old-age pension are met and working hours are reduced by at least 25% and at most 75%. Old-age pensions in this regard are the corridor pension, heavy labor pension, long-term insurance pension and the regular old-age pension. Depending on the reduction in working hours, a corresponding proportion of the pension account is paid out as partial pension. If partial retirement is taken as an early retirement, the usual reductions are applied to the partial pension.
Employer implications/action needed Partial retirement requires an agreement with the employer regarding the reduction in working hours.
Employer risk N/A
Old age part time benefits
Impact date: 1 January 2026 Previously, old age part-time benefits could be received for a maximum of five years before reaching the standard retirement age. From 2026, the period for receiving old age part-time benefits will be gradually reduced by six months each year from five to three years. Accordingly, from 2029, old age part-time benefits will be paid for a maximum of three years before the requirements for a corridor pension are met or for a maximum of three years before reaching the standard retirement age. Secondary employment during old age part-time will no longer be permitted.
Employer implications/action needed Old age part-time agreements that have already been concluded but only take effect in 2026 must adhere to the new provisions and need to be adjusted.
Employer risk N/A
Reporting employees’ working hours to social security
Impact date: 1 January 2026 Employers are required to report the agreed working hours of their employees when registering them for social security.
Employer implications/action needed Employers must specify the agreed working hours when registering employees for social security.
Employer risk N/A
Heat Protection Regulation
Impact date: 1 January 2026 A new draft Regulation proposes that in future, employers must implement a heat protection plan if GeoSphere Austria issues a heat warning of at least level two (30 to 34 degrees Celsius). The heat protection plan must provide for:
- Measures to prevent hazards (shifting working hours or reducing the severity of work)
- Technical and organizational protective measures (shading, shower facilities, changing tasks, moving work to shaded areas)
- Personal measures (light clothing, head protection, sunscreen, providing sufficient drinks)
Employer implications/action needed The employer must implement the required measures. The heat protection plan must be available for all employees to view at workplaces, construction sites and external workplaces.
Employer risk The labour inspectorate is to monitor the implementation of protective measures.
Reporting New Provisions for freelancers (Freie Dienstnehmer)
Impact date: 1 January 2026 A draft law proposes new provisions for freelance workers. The contract can be terminated by either party on the 15th or the last day of a calendar month. A notice period of four weeks, which extends to six weeks after the second year of service, must be observed. The first month of a freelance contract may be agreed as a probationary period. The collective bargaining parties will have the possibility to include employee- like freelance workers in collective agreements.
Employer implications/action needed Freelance contracts concluded from 1 January onwards must comply with the new termination provisions.
Employer risk Not adhering to the new termination provisions may result in damage claims.
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 labor 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
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