Austria Proposes Family Bonus Restructuring

The Austrian Family Ministry announced that starting from a child's fourth birthday, one-quarter of the lower-earning parent's salary will be used as the basis for bonus calculations. This change primarily affects women who frequently work part-time. The Ministry of Finance aims to save approximately 130 million euros through this restructuring. Government parties stated the move is intended to encourage increased labor participation while expanding childcare services. The Austrian Ministry of Family Affairs is redesigning the family bonus to incentivize more work from lower-earning parents, who are typically women in part-time roles. In 2024, the total cost for the family bonus was 2.6 billion euros. The new rules will allow one parent to claim the full amount for a child up to three years of age. Discussions include pedagogical requirements for kindergarten years and measures for inclusion in all-day schools. The plan also addresses increasing psychosocial staff in educational settings. Applicants for care allowance or occupational disability pensions remain dependent on medical assessments from the Pension Insurance Institution.