Strict restrictions on additional income for the unemployed starting from 2026
Starting from January 1, 2026, new strict rules will come into effect at the Austrian Labor Market Service (Arbeitsmarktservice - AMS), which will fundamentally change the ability of unemployed individuals to earn additional income. According to the new regulations, the combination of unemployment benefits or social assistance with minimal additional income will generally be prohibited, except for specific cases stipulated by law. The Austrian Parliament approved this amendment in June 2025 as part of the accompanying budget law.
Until the end of 2025, unemployed individuals were allowed to earn a limited additional income, whether from dependent or independent work, without time restrictions, alongside receiving unemployment benefits or social assistance. In 2024 alone, about 28,120 people benefited from this system, which is approximately 9.5 percent of the total unemployed in Austria. However, this option will be restricted to certain categories starting in 2026.
The new rules define four categories allowed to continue earning additional income. The first category includes individuals who have worked for at least 26 weeks in a minor employment (geringfügige Beschäftigung) alongside fully insured employment before entering unemployment, as they are allowed to continue this activity. The second category includes long-term unemployed individuals, who are allowed to work for additional income once for a maximum of 26 weeks.
The third category includes long-term unemployed individuals over the age of 50 or persons with disabilities of at least 50 percent, who are allowed to work with additional income without a time limit. The fourth category includes individuals who have received sickness, rehabilitation, or retraining benefits for at least 52 weeks, and they are also allowed to work with additional income once for a period of up to 26 weeks.
Transitional periods have also been established for individuals who earn additional income when the new rules come into effect. Long-term unemployed individuals who are working with a small income on January 1, 2026, must end this work by July 1, 2026, at the latest, unless they are over 50 years old or have a disability of at least 50 percent. The same provision applies to individuals who have received sickness, rehabilitation, or retraining benefits for 52 weeks prior to January 1, 2026.
The effects of this reform are not limited to the unemployed alone, but also extend to companies. Institutions that previously relied on simple work contracts to cover peak periods will have to adapt to the new rules. Employment contracts that do not meet the conditions for exceptions must be terminated by the end of the transitional period, otherwise workers may lose their right to unemployment benefits or social assistance.
Johannes Kopf, the head of the Austrian labor market department, warned that these changes require early preparation from companies. He emphasized that employers who have relied on low-income jobs need to replan their human resources in accordance with the new legal framework.