Austria plans €800 million payroll tax cut and up to €250 million in industry electricity subsidies

The Austrian ÖVP‑Business Union estimates that lowering the employer contribution to the Family Burden Equalisation Fund from 3.7% to 2.7% in 2028 will generate a net relief of about €800 million for companies, after offsetting the measure with a temporary banks levy and a limited corporate‑tax increase that targets only firms earning over €1 million. The cut also ends the exemption for workers aged over 60, making the contribution uniform for all employee groups.

In the 2027‑2028 budget, the Ministry of Economy proposes additional support for energy‑intensive industries: a CO₂ electricity‑cost compensation scheme worth €75 million in 2028 and a new industrial electricity price amounting to €175 million per year from 2027 to 2029. Together, these measures allocate roughly €250 million annually to about 500 firms, aiming to keep Austrian industry competitively priced on the international market. The overall economic budget is set to rise to €1.29 billion in 2028.