Active pension in committee: You get 1,250 euros tax-free per month
The National Council's Social Committee approved a legislative package of 16 laws on Wednesday that introduces a so-called active pension. Anyone who continues to work after reaching the standard retirement age will be able to earn up to 1,250 euros per month or 15,000 euros per year tax-free starting January 1, 2027. The standard retirement age is 65 for men and currently 62 for women.
The government expects that around 68,000 people who are already working alongside their pension will be affected, as well as another 22,000 who postpone their retirement. For immigrants, the regulation is significant in that it is linked to insurance periods rather than citizenship. Anyone who has acquired the necessary insurance years in Austria is subject to the same conditions.
A second part of the package concerns the new severance pay system. Starting in 2028, all employees are to have a legal right to transfer their accumulated severance pay balance into a pension fund free of charge.
The procedural status is important. The committee is not the final authority. The vote in the plenary session of the National Council is scheduled for September 23. Only then will the law be passed, and changes are possible until that time.
What you can do now: If you are close to the standard retirement age or are already receiving a pension and continue to work, check your insurance months in your pension account. Those who retired before July 1, 2026, may potentially be able to qualify for the benefit through additional insurance periods. An information letter is to be sent to those affected. Wait for this letter before changing your working hours, and if in doubt, seek advice from the Pension Insurance Institution.