Austria’s National Council approved tax and social insurance incentives for people who continued working after reaching the standard retirement age, with the measures set to apply from 1 January 2027.
Austria’s National Council approved a bill on 23 September 2026 introducing tax and social insurance incentives for people who continue working after reaching the standard retirement age.
The bill provides an activity tax allowance of up to EUR 1,250 per month or EUR 15,000 per year, reducing taxable income for eligible individuals.
Employees who continue working after reaching the standard retirement age will also be exempt from employee pension insurance contributions.
Self-employed individuals will instead receive a reduction in their pension insurance contributions under the scheme.
The bill was approved with support from the coalition parties and must now be approved by the Federal Council before taking effect.
The measures are due to take effect from 1 January 2027.
