Why unpaid care work in Austria remains a risk to retirement provision
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In Austria, many people perform unpaid work every day by looking after children or supporting dependent relatives. This so-called "care work" is indispensable for the functioning of society, yet it is not financially remunerated. Experts are once again warning that this important activity has long-term negative consequences for those involved.
The main problem lies in the gap in retirement provision. Anyone who reduces their working hours or gives up their job entirely to care for family members pays less into the statutory pension insurance scheme. As a result, many people—predominantly women—have to get by on a significantly lower pension in old age than those who were employed continuously.
The current debate shows that the social system in Austria has so far only insufficiently compensated for these services. Although there are creditable periods for child-rearing and care leave models, these often do not fully cover the actual loss of earnings. Many of those affected are therefore at risk of falling into poverty in old age.
Policymakers are now faced with the challenge of finding solutions to this structural injustice. Possible approaches could include greater financial recognition of care periods or improved options for private pension provision. The discussion on how care work can be fairly valued in the future therefore remains a central issue for Austrian social policy.