Federal Council is right: opportunities and challenges for older workers!

Federal Council is right: opportunities and challenges for older workers!

Österreich - The legislative package for the introduction of the partial board passed the Federal Council on July 17, 2025. In the event of a name, 40 members voted against the law. From 2026 it will be possible that older employees work part -time and at the same time move into part of their pension, provided they meet the prerequisites for an age pension. This new regulation aims to make the pension system in Austria sustainable and to increase the employment rate of older workers.

The new partial board claim can be used between 25 % and 75 % in the event of a reduction in working time. The pension account is closed accordingly, and the rest of the pension claim remains until a final pension. The calculation of the partial board is based on the reduced working hours and the overall credit in the pension account, while discounts are used when the pension is used prematurely.

changes in partial retirement

With the introduction of the partial board, restrictions on partial retirement will also come into force. These apply to agreements that begin after December 31, 2025. The maximum size of the partial retirement allowance is reduced to three years, and the necessary employment times for the purchase of partial retirement allowance are increased from 780 to 884 weeks. An obligation to notify the AMS is also provided if there is additional employment during partial retirement.

The FPÖ has sharp criticism of the partial board and describes it as a massive deterioration and "legally secured social fraud". In contrast, the SPÖ requires the reform necessary to offer older workers: to offer a future perspective inside. The Greens express themselves concerned because the sub -pension is associated with restrictions on partial retirement.

sustainability mechanism

A "sustainability mechanism" was also re -introduced, which the government obliges to carry out cuts in the pension system if the budget path is exceeded for pension expenses. This mechanism contributes to the long -term financing of the pension system, especially in view of the demographic challenges with which Austria is faced.