Austria: bonus for employing local workers

Last week, the Austrian government set out plans for a new recruitment subsidy (Beschäftigungsbonus) for the hiring of local workers. This measure, which will be funded with 2 billion euros and is part of a wider push to reduce unemployment levels, involves halving the social security contributions companies pay, for a period of three years, for residents of Austria that they hire. The aim of the measure is to create up to 160,000 jobs. Employer groupings have welcomed the measure, but have warned that it could become a huge bureaucratic burden.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

The Austrian government has begun putting its new 36-page plan for job creation, which it presented at the end of January (see article n° 10047) after a final arbitration between the coalition parties, into practice. One of the plan’s flagship measures was adopted on Tuesday 21 February by the country’s council of ministers. The measure is a bonus paid for hiring local workers (Beschäftigungsbonus). The subsidy is geared towards fighting the rising level of unemployment in the country,...

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
Luxembourg: two pension reform bills submitted to parliament
After lengthy negotiations with the social partners, in mid-October the Luxembourg government submitted two bills to parliament aimed at reforming the pension system to ensure its long-term...
Germany: pensioners in work already common practice, study shows
As the German government steps up measures to encourage people to stay in work beyond the legal retirement age, a new study by the Institute of Economic and Social Research (WSI) – an independent...
France: social conference on labour and pensions to proceed without main employers’ group
The preparatory meeting ahead of the social conference on labour and pensions, which is set to decide on the pension system model and the funding thereof, was held on 4 November at France's labour...
Spain: already well on the way to pay transparency?
Spain is preparing for the implementation of its national law transposing the EU Pay Transparency Directive, which will take effect on 7 June 2026. The legislation marks another step forward in...
5 November 2025
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
mind RH analysis – Initial findings from CSRD social indicators
In 2025, for the first time, the universal registration documents of major European companies contain the sustainability reporting required by the EU Corporate Sustainability Reporting Directive...
2
Netherlands: ING cites AI as it plans to cut around 950 jobs
Dutch bank ING has informed the employment agency UWV that it may cut around 950 jobs by 31 December 2026. In its notification on 20 October, the lender said the planned reductions stem partly...
30 October 2025
3
Italy: European pay transparency directive, a major step forward for businesses
Italy’s labour market continues to suffer from limited pay transparency and a persistent gender pay gap. The forthcoming implementation of the EU pay transparency directive — still awaiting...
4
Germany: EU pay transparency directive to force companies to ‘get tough’
Germany introduced a pay transparency law in 2017, meaning companies are already somewhat familiar with the issue. However, the broader scope and stricter requirements of the EU directive, the...
24 October 2025
5
EU: Omnibus Directive clears key milestone in European Parliament
On 13 October, the European Parliament’s position on the Omnibus Directive was approved by its Committee on Legal Affairs by 17 votes to six. Regarding due diligence rules, the report...
13 October 2025
6
Germany: ‘active retirement’ law adopted to encourage seniors to remain in the workforce
On 15 October, Germany’s cabinet approved draft legislation on ‘active retirement‘, which is expected to pass swiftly through Parliament. The bill would allow people who continue...