AMS Owes Low-Paid Jobless About €135 Million After Court Ruling
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Austria's public employment service AMS may have to pay back about €135 million to people who received too little unemployment benefit, according to reports on Tuesday 27 October. The figure comes from the Social Affairs Ministry, which has been calculating the impact of a recent ruling by the Administrative Court (VwGH).
The court found that the AMS calculated unemployment benefit wrongly for low earners. When working out the net income used as the basis for the benefit, the AMS deducted the standard 3 percent unemployment insurance contribution. But people with low wages do not pay that contribution in full. In 2026 no contribution is due up to €2,225 gross per month, and a reduced rate applies up to €2,630.
The case began with a woman from Upper Austria who received €21.09 a day. After the court ruled in her favour, she is due roughly €20 to €30 more per month, plus her legal costs of €1,346. Reports now say the same error affects a six-figure number of cases, covering both unemployment benefit (Arbeitslosengeld) and emergency assistance (Notstandshilfe), not just a few thousand as first assumed.
Under the unemployment insurance law, a wrong calculation can be corrected backwards for three years. Affected people with a low previous income can ask the AMS to review their benefit and pay the difference.
Social Affairs Minister Korinna Schumann has promised a proper process. In her words, the questions are now to be handled carefully, with a legally secure solution and an orderly implementation. How and when repayments will be made is still open, and the law itself may be changed.
Who is affected: anyone who received Arbeitslosengeld or Notstandshilfe in the past three years after earning a low wage. What changes: the AMS is expected to recalculate benefits and pay arrears. What to do: if you were on benefits with a low previous income, you can request a review from your regional AMS office.
Sources: Salzburger Nachrichten (APA), Die Presse
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