Austria: Federal Council gives final green light to new partial retirement scheme

On 17 July 2025, the Austrian Federal Council (Bundesrat) adopted the bill introducing the new partial retirement scheme by a two-thirds majority. This vote, which follows approval by the lower house, the National Council (Nationalrat), on 7 July, concludes the legislative process for the bill. The legislation’s flagship measure will allow employees to take partial retirement from 2026, reducing their working hours by 25%, 50% or 75%. Such arrangements are optional and require the...