Austria and Germany tighten unemployment benefit rules in 2026

Austria will restrict the ability of unemployment benefit recipients to earn additional income starting 1 January 2026. The new rule limits side‑earnings to the marginal‑employment threshold of €551.10 per month and allows exceptions only for certain groups: those already holding a marginal job for at least six months before unemployment, long‑term unemployed who can take a limited‑term marginal job for up to 26 weeks, persons over 50 or with a disability who may work marginally without time limits, and long‑term sick recipients who can also work for up to 26 weeks. Any marginal job not covered by these exceptions must end by 31 January 2026, otherwise unemployment support will cease.

In Germany, the Bürgergeld system provides a basic allowance for job seekers and includes various subsidies such as housing, health‑insurance contributions, travel costs for approved training, and benefits for families, single parents and pregnant women. The Bundestag approved a reform on 5 March 2026 that will rename the benefit “Grundsicherungsgeld” and introduce stricter sanctions, with the changes scheduled to take effect on 1 July 2026. The reform aims to tighten eligibility and increase conditional support while maintaining the existing ancillary benefits for recipients.