New austerity: AMS cancels the education allowance!
The Austrian government announced a set of new austerity measures aimed at reducing the budget by 6.4 billion euros in 2025 and 8.7 billion euros in 2026. In this context, a budget-related law was introduced that includes 72 legal amendments, the most notable of which are the cancellation of social benefits and the reduction of certain advantages previously provided by the state.
One of the most controversial measures is the cancellation of what is known as the "Bonus for Social Assistance Recipients" or the education bonus for beneficiaries of social assistance, which had been provided since 2024. This bonus was awarded up to 300 euros per month, with a maximum of 3,600 euros annually, to participants in long-term training programs offered by "AMS" (Austrian Employment Office). The government justified the cancellation by citing organizational complexities and administrative overlaps with "AMS", leading to what it described as "duplication in implementation".
A clause in the law that stated this bonus does not affect the amount of social assistance has also been canceled, meaning that beneficiaries may now lose part of their assistance when receiving any additional educational support.
In addition, the government has imposed new restrictions on the ability to work part-time while receiving unemployment benefits or emergency assistance. From now on, limited work will only be available in exceptional cases, such as for those who have been unemployed for more than a year or who have received sick benefits for more than 52 weeks, where they can earn limited income for up to 26 weeks.
Despite these restrictions, there are permanent exceptions for people over the age of 50 who have been unemployed for long periods, as well as for those with disabilities. People who have worked part-time for at least six months before losing their jobs are also exempt, provided there is no interruption in that work.