Pension bonus – Parliament has decided to encourage longer working hours

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A recent survey shows that people in Austria retire significantly earlier than many other developed industrial countries. The federal government now wants to use additional incentives to keep people working longer. A package of measures was adopted in the National Council on Wednesday.

With the votes of the government parties, it has been decided to provide a higher pension supplement for people who continue working after the standard retirement age. This annual bonus will be increased from 4.2 to 5.1 percent and can be received for a maximum of three years. The federal government will also cover part of the pension contributions of employees who work alongside their pension – initially for a limited period of two years.

You only have to pay pension contributions for that part of your additional income that is above twice the marginal income limit. In 2024, this is expected to be around 1,037 euros. A step is being taken to make the transition phase from work to retirement more flexible, according to Minister of Social Affairs Johannes Rauch (Greens).

There will be a tolerance limit for permitted additional earnings for people who receive a corridor or heavy work pension. If the monthly marginal income limit is only slightly exceeded, this no longer automatically leads to the loss of pension benefits. This tolerance limit is expected to be around 207 euros in 2024.

The opposition sees no step towards a sustainable pension system
The opposition disagreed. Dagmar Belakowitsch (FPÖ) criticized the fact that although there were no pension contributions to be paid, unemployment insurance had to be paid. Social spokesperson Gerald Loacker of NEOS complained that even more money was being pumped into the pension system. SPÖ social spokesperson Josef Muchitsch saw no step towards a sustainable, safe and fair pension system. Those who can no longer work due to their health do not benefit from the measures.

Zero pay round for top politicians
The introduction of a zero pay round for top politicians – namely those from all parliamentary parties except the FPÖ – received considerably more support. In the coming year, the salaries of the Federal President, members of the government, the presidents of the National Council, the club presidents, the President of the Court of Audit and the ombudsmen will not be increased.

If salaries had been adjusted for inflation, they should have increased by 9.7 percent. Members of the National Council and members of the Federal Council receive half of the inflation adjustment and therefore a salary increase of 4.85 percent. There were no requirements for top politicians in the states. People don’t like to dictate anything to them, said Green MP Eva Blimlinger.

Healthcare reform as the most important decision
The most important decision of the last week of the plenary session concerns healthcare reform. More money should be available, especially for private practices and outpatient care in hospitals. Health Minister Rauch emphasized in advance that the number of primary care units is already increasing significantly. His approach was to guarantee good medical care, without additional insurance or credit card, quickly and close to the patient’s home: “That is exactly what we are doing now.”

Source: Krone

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