The net salary is lower for all residents of Vienna - this is the reason
Residents of Vienna are facing a financial crisis after the approval of the austerity budget for 2026. The city administration, led by the SPÖ party, announced a plan to cut spending and increase revenues, which will lead to increased deductions from the salaries of city workers. With the inflation rate remaining at around 4% and wage increases not keeping pace, many will find themselves with a lower actual income than before.
According to the SPÖ party, the new budget aims to "secure the future of Vienna and maintain social cohesion." Regional party secretary Jörg Novomayer confirmed that the city is considered "the economic engine of Austria," noting that Vienna has previously succeeded in combining smart investment with social stability, and that the government will continue this approach through responsible management and strategic investments in sectors that ensure long-term quality of life.
While the government assures that it will not affect programs dedicated to women and children, such as kindergartens, day schools, and free lunch meals, other areas will see clear reductions. Training initiatives in the healthcare sector will continue, with a goal of hiring 16,000 nurses by 2030, and completing the projects of the Hietzing and Otakring hospitals. However, some grants and financial support will be reduced, along with the imposition of new measures to increase revenues.
One of the most controversial measures is raising the housing support deduction from 0.5% to 0.75% of the gross salary. For a person earning 3,000 euros per month, this means an additional loss of 7.50 euros per month. The city expects this step to bring in about 190 million euros to its treasury. Public transport prices will also be increased, and several major projects such as the renovation of Gumbendorfer Street and the Laerbergbad swimming pool have been canceled.
The cuts also include social assistance. People with subsidiary protection will see their benefits reduced from 1,200 euros to only 400 euros, and additional assistance for families will be abolished. Opposition leader Dominik Nepp from the FPÖ party criticized these measures, describing them as 'unlimited arrogance.' He accused the SPÖ party of burdening working citizens to finance 'luxury apartments for mass immigration,' blaming years of financial mismanagement for the current austerity policy.