Austria: new minimum integration allowance stirs up debate on increasing minimum wage to 1,300 euros

Minimum wage with a door to employment. After months of uncertainty regarding the conditions for its application, the flagship reform of the SPÖ (social democrats), the party of the Austrian Chancellor, is finally on track. The ministerial cabinet agreed to introduce the “Mindestsicherung,” the new national allowance which will replace, as of September 1, the current ‘patchwork’ of regional social welfare benefits (see our dispatch No. 100006). Only the land of Upper Austria, the most industrialized region in the country, decided to postpone this introduction to January 1, 2011. The new allowance will amount to €744 a month across Austria (regions may add to it). Unlike previous social welfare benefits, it will be managed by the AMS and the beneficiaries will be offered more opportunities to access the labor market. They will also have obligations, depending on their level of employability. 270,000 people should receive the Mindestsicherung – mostly Austrian people but also EU citizens who have workers and lived in the country for at least 18 months, or even third-country citizens in Austria for at least 5 years.
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lowance which will replace, as of September 1, the current ‘patchwork’ of regional social welfare benefits (see our dispatch No. 100006). Only the land of Upper Austria, the most industrialized region in the country, decided to postpone this introduction to January 1, 2011. The new allowance will amount to €744 a month across Austria (regions may add to it). Unlike previous social welfare benefits, it will be managed by the AMS and the beneficiaries will be offered more opportunities to access

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