A Austrian businessman was cut off after earning 'too much'.
A young entrepreneur in Styria lost his unemployment benefits after the Austrian public employment service ruled that his small business was making too much profit, leaving him struggling to pay rent and basic bills.
According to the Klein Zeitung, the man tried to build his own business while working at a rental company. He expected to be hired permanently after six months, but his contract ended in October 2025 because the employer did not want to combine paid work with part-time freelance work.
He then applied for unemployment benefits and also sought to join the startup program. However, he was rejected from the program, and the Austrian labor agency later decided that his income from business made him ineligible for additional support.
Between July and December 2025, he earned a total of 3,309 euros. AMS considered this amount as regular income by distributing it over twelve months, which pushed him above the marginal profit threshold. As a result, his unemployment status was canceled and payments stopped.
The entrepreneur says that the number does not reflect his true financial situation. He states that a large part of the money went towards materials and operating costs and that he had no income at all in December. Without benefits, he missed the rent payments for November and December and has already received a warning from his electricity provider.
AMS stated that it cannot comment on individual cases but clarified that new businesses practiced as a primary profession and capable of providing financial security are the only ones eligible for the startup program. Individuals classified as marginally self-employed or exempt from mandatory insurance are excluded.
The Styrian man feels abandoned by the system. He says he has always worked and applied for every job offered to him, and he just wants a system that clearly distinguishes between revenue and actual income. His case, reported by journalist André Wilding, has reignited criticism about how Austria supports people trying to transition from unemployment to self-employment.