2023-12-13 18:02:12
The federal government covers part of the pension contributions if you earn additional income in addition to your pension
Vienna (PK) – Anyone who continues to work beyond the standard retirement age will receive a higher pension supplement in the future. The National Council decided today by a majority that the annual bonus will be increased from 4.2% to 5.1%. The pension bonus can be withdrawn for a maximum of three years. In addition, the federal government will – initially for a limited period of two years – cover part of the pension contributions of employees who work alongside their pension. The aim of the project is to address the existing shortage of skilled workers and to create an incentive for longer working hours.
The coalition parties also used the change in social security laws to extend provisions on corona tests, medicines and vaccines.
There was no majority for an FPÖ initiative for an “Aktion 60 Plus” or a demand from NEOS for restrictions on early retirement. A motion for a resolution tabled by the SPÖ during the debate to abolish the aliquoting of the first pension adjustment also remained in the minority.
Tolerance limit for additional income
With the per Initiativantrag Under the new regulations introduced by the coalition factions, pensioners who work alongside their pension will only have to make pension contributions in the next two years for that part of their additional income that is above twice the marginal income threshold – expected to be around €1,037 in 2024. The federal government steps in for the remaining part, which means relief of up to €106.28 for those affected. The regulation not only covers ASVG insured people, but also the GSVG and BSVG areas. The assumption of contributions only applies to those who receive their own pension, as was made clear in an amendment submitted by the ÖVP and the Greens to the Labor and Social Affairs Committee. The pension may not exceed a total of 94.28% of the total assessment basis (currently: 91.76%).
For people who receive a corridor pension or a heavy work pension, a tolerance limit on permitted additional earnings will be introduced. Exceeding the monthly marginal income limit (expected to be €518.44 in 2024) no longer automatically leads to the loss of pension benefits, provided the excess is only minor (no more than 40% of the monthly marginal income limit annually, which is expected to be around €207 in 2024).
It is also stipulated that the annual pension account information for older employees must clearly show what specific impact a different retirement age has on the pension of the insured person. In order to underline the existing obligation of employers to inform part-time employees regarding jobs with longer working hours that become available in the company – or new full-time positions -, a claim for damages of €100 each will be introduced for affected part-time employees. When it comes to the eligibility requirements for partial retirement, longer periods of self-employment should no longer have a negative impact in the future.
The negotiations also included motions from the FPÖ and NEOS, which did not find a majority. The Freedom Party demanded in one Motion for a resolution a “Action 60 plus for the Austrian labor market”, for example with a reduction in non-wage labor costs for employers and employees for employment relationships following retirement and at least quarterly valorization of the marginal income limit. The NEOS spoke in one Motion for a resolution for restrictions in the event of early retirement. Accordingly, in addition to the existing requirements, employees should no longer be allowed to retire before the standard retirement age in the future if their pension would be so low that they would be entitled to a compensatory allowance.
Debate regarding working longer
Social Minister Johannes Rauch said that more and more people want to work alongside their pension. The current changes are a step towards making the transition from working life to retirement more flexible. This also makes it possible for older people to be able to pass on their experiences better to younger people.
The demographic development means that there is a lack of young people in the labor market, explained Bettina Zopf (ÖVP). It is therefore important to provide incentives so that working remains attractive for older people. She spoke of a “benefit package” with incentives for those people who can and want to work beyond retirement age and thanked this group of people. Elisabeth Scheucher-Pichler (ÖVP) emphasized that the economy needs the know-how of this older generation. Markus Koza (Greens) particularly emphasized the changes to the eligibility requirements for partial retirement. He also found the compensation for part-time employees who were not informed regarding full-time positions available to be positive.
The opposition, on the other hand, saw little good in the proposed law.
Dagmar Belakowitsch (FPÖ) described the idea of people retiring later as a “noble goal”, but described the solution as clumsy. In your opinion, working hourly alongside your pension is not attractive. She found the higher bonus for people who retire later positive. For Peter Wurm (FPÖ), the changes are not a step in the right direction, but “at most a stumble”. In principle, there is nothing wrong with people working voluntarily alongside their pension. But he sees the big problem as “unqualified immigration,” while the labor market is desperately looking for skilled workers.
Josef Muchitsch (SPÖ) said that it is not working in retirement, but rather working before retirement that needs to be made more attractive. But the government is not worried regarding that. There are no improvements in working conditions so that people can work healthily for longer. For him, the proposed regulations do not bring fairness. He also once once more described the aliquoting of the first pension increase as not fair. He therefore pushed for a resolution to abolish the aliquoting of the first pension adjustment – retroactively to the beginning of 2022. The motion remained in the minority. Alois Stöger (SPÖ) criticized the fact that only a few will benefit from the innovations. There won’t be many construction workers or nurses who can continue working following 65, he said.
Gerald Loacker (NEOS) also mightn’t find anything good regarding the coalition’s proposal. The fact that the Republic covers the pension contributions for that “privileged group who are in good health” to work alongside their pension has nothing to do with justice. Like Muchitsch, Loacker was also convinced that people should not work longer in retirement, but before it.
Rules for corona tests, medication and vaccines extended
With an amendment submitted during the debate, the coalition factions also initiated changes in another area. Accordingly, the regulations for carrying out COVID-19 tests in private practice will be extended until the end of March 2024. Pharmacies should also receive the flat fee for dispensing corona medication for longer than planned, namely until the end of January 2024. The budgetary authorization for the Minister of Health to dispose of COVID-19 vaccines will also continue to exist with the change and will apply until the end of June 2024. The deadline for authorization for corona medicines is the end of April 2024. All regulations affected by the amendment would have expired at the end of 2023. (Continuation of the National Council) kar
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