Österreichische Post to pay 47.8 million euros to Austria in settlement

Österreichische Post AG has reached a settlement with the Republic of Austria to pay 47.8 million euros, resolving a long-standing dispute regarding social security contributions for civil servants.

The disagreement centered on payments made to the Familienlastenausgleichsfonds (FLAF) for employees serving between May 1996 and May 2008. While a 2015 ruling by the Austrian Supreme Administrative Court (VwGH) determined that the company and its predecessors had no legal obligation to make these specific contributions—leading to the reimbursement of certain funds to the company between 2015 and 2019—the settlement addresses potential compensatory obligations to the state.

By agreeing to the 47.8 million euro payment, the company avoids further litigation with the Finanzprokuratur, the legal representative of the Austrian Chancellery. Österreichische Post stated that the settlement will not create an unexpected financial burden, as provisions for such payments have been set aside since 2018, and the final amount is lower than the reserves allocated.