The new minimum income – less money for large families
The new minimum income law in Austria is causing widespread controversy, as it promises to increase financial support for some groups while imposing cuts and stricter rules on others. The reforms were presented two weeks ago and are being promoted as a way to make social assistance more targeted and encourage people to enter the labor market.
Under the new rules, low-income retirees and people with disabilities will receive greater financial support. However, those with subsidiary protection and citizens of third countries will not be eligible for the minimum benefits. Large families will also be affected by significant cuts, and the reform introduces new penalties that could even lead to the complete cancellation of benefits.
The DOWAS social organization has strongly criticized these reforms, stating that they are based on the assumption that many beneficiaries "are lounging in a social hammock." In reality, about 70% of minimum income recipients are "supplementary beneficiaries," meaning they are already working or receiving unemployment benefits or pensions but do not earn enough to live. The organization believes that the government, instead of addressing low wages and strengthening the labor market, is placing the burden on vulnerable families. In Tyrol alone, 43% of beneficiaries live with children in the same household, and they are the group that will be most affected by the cuts.
The federal government plans to introduce a new framework titled Sozialhilfe NEU, with stricter rules for migrants, a waiting period, and limited benefits during the so-called "integration phase." The government also emphasizes a greater focus on supporting children. These changes are set to take effect in 2027. Vienna tops the list of states in the number of social assistance beneficiaries, having already spent around one billion euros annually, with over 142,000 eligible individuals in 2023.
The task of implementing the new rules will fall on the federal states, although they retain some flexibility in how to apply them. This has already led to significant differences in how social assistance is distributed across the country. In Tyrol, for example, there are 8,920 eligible beneficiaries, with spending amounting to 49 million euros, but the state still lacks a comprehensive law on social assistance, making payment rates different from the rest of Austria. Critics warn that these new cuts may deepen the social gap and put greater pressure on families that are already struggling.