Austria AMS to pay 135 million euros in unemployment benefit corrections

The Austrian Public Employment Service (AMS) is set to pay approximately 135 million euros in back payments to roughly 250,000 individuals. This follows a ruling by the Administrative Court which determined that the agency had incorrectly calculated unemployment benefits and emergency aid.

The error stemmed from a systemic calculation flaw where a three percent unemployment insurance contribution was deducted from the daily benefit entitlements of low-income earners, even though these individuals were legally exempt from paying such contributions. This practice resulted in claimants receiving less money than they were entitled to.

On average, affected persons were underpaid by about 1.10 euros per day, leading to an average repayment of approximately 400 euros. However, some individuals who were underpaid by more than two euros daily over a three-year period may receive up to 2,500 euros.

Eligible recipients, including those receiving unemployment benefits and emergency aid, do not need to submit an application. The AMS will review cases automatically and initiate transfers. The Social Ministry aims to complete these payments by 2026, covering periods up to three years prior to September 22, 2026. Legal measures will be implemented to ensure that processing times do not negatively impact the claims of those affected.