The austerity package hits women harder
Austria’s planned budget cuts for 2027 and 2028 are expected to affect women disproportionately, according to a new Gender Budgeting Report from the Momentum Institut. Although women account for around 40% of total income, they are expected to bear 46% of the net budget consolidation between 2027 and 2031.
According to the analysis, women will lose an average of 1.58% of their net income each year from 2027 to 2031 as a result of the cuts, compared with 1.43% for men. Meanwhile, measures involving additional spending and tax reductions are expected to benefit men slightly more, with an annual gain of 0.74% of net income compared with 0.71% for women.
Overall, the budget measures are expected to reduce women’s net income by an average of 0.86% per year, compared with 0.70% for men. In 2027 alone, however, men are expected to be slightly more affected because the planned reduction in non-wage labor costs will not take effect until 2028.
The Momentum Institut says cuts to social benefits and measures affecting lower-income earners are a major reason women are more heavily affected. Women make up around 68% of low-income earners who will face higher unemployment insurance contributions. As a result, women are expected to pay an additional €441 million per year, while the additional burden for men will remain below €200 million.
Women will also be particularly affected by the failure to increase family benefits in line with inflation and by cuts to rehabilitation benefits. Men, meanwhile, will bear more of the burden from measures targeting higher incomes, including an increase in the maximum contribution base. Around 76% of those affected by that measure are men, reflecting the higher number of male top earners.
The Momentum Institut warned that the budget could make existing income differences even wider rather than reducing them. The organization criticized the government for examining the gender impact of only 11 measures and called for gender-budgeting analysis to be carried out at the beginning of future budget negotiations.
Austria’s Greens said the findings confirmed their criticism of the government’s budget plans. Women’s spokesperson Meri Disoski particularly attacked the SPÖ, arguing that a party that claims to stand for social justice and women’s rights is now supporting measures that disproportionately affect women and could deepen existing inequalities.