Pensioners in Austria: First cuts through higher KV contributions!

Pensioners in Austria: First cuts through higher KV contributions!

From June 1, 2025, health insurance contributions for over two million pensioners in Austria will increase from 5.1 to 6 percent of gross pension. This measure was decided by the new government to relieve the budget of the state and the Austrian Health Insurance Fund (ÖGK). The first payment of these increased contributions will be made in July 2025 after the Juni Pension will already take into account the new contribution rate. For many pensioners, this means a noticeable additional pollution, since some will see their net option by several hundred euros a year, as [5min.at] (https://www.5min.at/5202506241857/tag-x-wann-oesterreichs--erstmals-weniger-gele--

pensioners who receive a compensation allowance are excluded from this increase by January 1, 2026. This also applies to their spouses or registered partners in the common household. For all other pensioners, especially for those with low pensions, the increase in the KV contributions represents a new financial burden. For example, recipients of a gross pension of 1,700 euros with an additional 176 euros per year. With a pension of 2,000 euros, it is 163 euros more, while 4,000 euros gross with 327 euros.

Details on health insurance

According to the information from pv.at, the increase in premiums will be evident from July in the pension payout documents and in the accounts of the banks. In some cases, the additional loads can already be deducted for the Juni pension, which begins with the fact that the contribution rate increases to 6 %.

It should be emphasized that people who receive a compensation or pension bonus must pay the new contribution rate as early as June 1, 2025. The old contribution rate of 5.1 %applies to all other recipients of compensatory allowances until January 2026. This regulation affects over 40,000 affected people who rely on state support.

political reactions and future plans

Experts also comment on the current developments. Some demand an increase in the age of 67 years. Occupational psychologist Gerhard Klicka emphasizes the need to look at the requirement for older workers in a differentiated manner, whereby the physical resilience varies depending on the professional field. In professions with high physical stress, the pension should not be delayed, while in knowledge-intensive areas, a longer gainful employment is possible, as shown in an article by kosmo.at.

The government also plans to implement measures to support older workers. This includes, among other things, an attractive additional earnings model, the design of partial retirement, incentives to occupy older people as well as a reform of the recipe fees and drugs. These initiatives aim to improve the quality of life of the pensioners and to compensate for the financial burdens through increasing contribution payments.