Austrian court rules AMS miscalculated unemployment benefits

The Austrian Administrative Court (Verwaltungsgerichtshof) has ruled that the Public Employment Service (AMS) has been systematically miscalculating unemployment benefits for low-income earners. The ruling follows a legal challenge by an individual from Upper Austria who discovered her daily unemployment allowance was being calculated incorrectly.

The error stems from how unemployment insurance contributions are applied when determining the net assessment basis. While the AMS applied standard employee contribution rates, the court found that low-income earners—those with gross monthly salaries up to €2,225 or €2,630 depending on specific criteria—should benefit from reduced or exempted rates. The court noted that while legislative intent suggested these rates should not affect benefit calculations, this intention was not explicitly reflected in the law itself.

The Social Ministry is currently analyzing the legal consequences of the decision and intends to provide the AMS with new guidelines for implementation as soon as possible. Because incorrect assessments under the Unemployment Insurance Act (AlVG) can be retroactive, there is a possibility of significant back payments totaling millions of euros to affected individuals.