Austrian labor unions propose bonus-malus system for older workers

The Chamber of Labour (AK) and the Austrian Trade Union Federation (ÖGB) have proposed a new incentive system to encourage the employment of older workers. The model suggests that companies employing an above-average number of people aged 60 to 64 within their industry should receive a bonus.

Conversely, companies that fail to meet specific target quotas would face a monthly penalty of approximately 615 euros per missing position. Based on 2026 data projections, labor representatives estimate that roughly 10,000 companies would be required to pay a total of 266.4 million euros annually under this system.

The proposal suggests that half of the collected funds be redistributed to companies as bonuses, while the remaining half be invested into employment measures through the Public Employment Service (AMS). The AK and ÖGB noted that the necessary data for annual accounting is already available through the main association of social security providers, which would prevent additional bureaucratic overhead. Small businesses with fewer than 20 employees would be exempt from the proposal.