Austrian Chamber of Labour demands insolvency fund contribution hike

The Austrian Chamber of Labour (AK) is calling for an urgent increase in contributions to the Insolvency Compensation Fund (IEF) to address a significant structural deficit. According to AK Chief Jurist Ludwig Dvořák, the fund's instability stems from a 2022 decision to halve employer contributions from 0.2 percent to 0.1 percent.

This reduction has resulted in an estimated cumulative loss of nearly one billion euros from the fund's reserves since 2022. Annual deficits have fluctuated, with projected shortfalls of approximately 190 million euros for 2025 and a forecasted 160 million euro gap for 2027.

The Court of Audit has also recommended a contribution increase of 0.1 percent. Such an adjustment would generate between 150 and 160 million euros, which experts suggest could cover the projected deficit assuming a slight economic recovery.