Austria: introduction of a hiring bonus and a rise in tax-free employee profit sharing

The call for early elections to be held on 15 October has forced the government to adopt several measures before the parliamentary summer recess. Among these is the Beschäftigungsbonus, or hiring bonus that will allow companies to pay only 50% of their new employees’ social contributions for a period of three years. In addition there will also be a law raising the tax-free threshold for companies’ discretionary employee-profit-share schemes. Both measures will come into force on 01 July 2017.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

Two billion euros for the Hiring Bonus. In the week of June 19 Austria’s parliamentary economics committee adopted, albeit without the Ecology Party’s support, the creation of the Hiring Bonus that seeks to ‘strongly encourage hiring’. This bonus will enable companies to hire staff and as a result receive 50% relief on their new employees’ social contributions for a period of three years. The federal government has earmarked €2billion to finance this measure over the period 2017-2023.

Attributio

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
France: sectors feel economic slowdown to differing degrees
The latest data on France’s occupational sectors (branches professionnelles), covering the year 2023, show how employment trends are shaping workplace dynamics. After a more favourable period for...
United Kingdom: Parliament finally passes Employment Rights Bill
The UK Labour government's flagship reform of employment rights was passed by both houses on 16 December after a turbulent parliamentary process. The bill introduces numerous changes to labour...
18 December 2025
EU: social partners in telecoms sign joint statement on AI
On 16 December, the social partners in Europe's telecommunications sector unveiled a joint statement on artificial intelligence. They propose an action plan for skills and commit to raising...
18 December 2025
EU: MEPs demand directive on algorithmic management
Members of the European Parliament have called for a directive on algorithmic management. Such legislation would introduce obligations for companies to inform employees, assess health and safety...
17 December 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
Spain: new terms and conditions for in-company training contracts
On 25 November, Spain's Council of Ministers approved a regulation on training contracts. This text defines the terms and conditions for hosting work-study students and interns doing professional...
2
EU: Commission issues first recommendation on human capital as part of European Semester
In parallel with the European Semester adopted on 25 November, which proposes guidelines to member states on economic policies for the coming year, the European Commission has adopted an...
3
France: sectors feel economic slowdown to differing degrees
The latest data on France’s occupational sectors (branches professionnelles), covering the year 2023, show how employment trends are shaping workplace dynamics. After a more favourable period for...
4
Germany: apprenticeship openings fall sharply in manufacturing and chemicals
From 1 January 2026, Dutch collective agreements for temporary employment agencies will alter the employment conditions of temp workers. Agencies will be required to pay these workers at least the...