Austria Boosts Care Allowance as Germany Plans Pension Cuts for Caregivers

Austria announced that from 2027 the state care allowance will rise for 508,897 recipients, a rise financed by an additional €120 million in the federal budget. The increase matches full inflation adjustment and is presented as a safeguard for people dependent on care.

In Germany, the government’s draft Pflegeneugordnungsgesetz proposes to cut the pension‑insurance contributions that caregiving relatives currently receive from the care insurance. Starting 1 January 2027 the contribution share would be lowered to about 70 % of the current level, a measure expected to save roughly €1.8 billion in 2027 and over €2 billion annually thereafter. The reform is part of a broader effort to address a projected deficit of more than €7.5 billion in the care insurance fund.