# Austrian pension and family benefit reforms

> Live situation record from CLSTR: https://clstr.news/situations/austrian-pension-and-family-benefit-reforms
> Updated: 2026-09-22T07:18:02.000Z. Sources: 3. Developments: 2.

The Austrian government has detailed budget regulations for 2027 and 2028 that introduce significant changes to family financial support and retirement incentives. 

Regarding family benefits, core payments including Familienbeihilfe, Kinderbetreuungsgeld, Familienzeitbonus, Schulstartgeld, and Mehrkindzuschlag will not be adjusted for inflation in 2028. This marks the third consecutive year these payments remain at 2025 levels. Changes to the Familienbonus Plus starting in 2027 will mandate that the tax advantage—up to 2,000 euros annually—be split between both parents once a child reaches age four, though single parents remain exempt. The Catholic Family Association has criticized these changes, suggesting they could disadvantage multi-child and single-earner families.

To address labor shortages, the ‘Aktivpension’ policy will launch in 2027. This measure allows pensioners to earn up to 15,000 euros in annual income from active employment tax-free, while exempting them from personal pension insurance contributions. Economic Minister Wolfgang Hattmannsdorfer defended the policy as a way to incentivize extending working lives, despite criticism from the Momentum Institute that higher-income pensioners benefit more in absolute terms. The Freedom Party (FPÖ) has opposed the framework, arguing it may disadvantage heavy laborers; they are seeking amendments to ensure tax exemptions are calculated annually and to allow men to access benefits regardless of reaching age 65, provided insurance requirements are met.

Additionally, the financing of the Family Burden Equalization Fund (FLAF) will be restructured in 2028 by decreasing employer contributions from 3.7 percent to 2.7 percent, a move expected to create a two-billion-euro revenue shortfall to be offset by higher state allocations and increased contributions from older employees.

## Timeline

### 2026-09-22: Austria introduces 'Aktivpension' tax incentives for retirees

Austria is introducing 'Aktivpension' to incentivize retirees to work, offering up to 15,000 euros in tax-free annual income, despite opposition from the FPÖ and criticism regarding benefit distribution.

2 sources. https://clstr.news/cluster/austria-introduces-aktivpension-tax-incentives-for-retirees

### 2026-09-20: Austrian Nationalrat resumes sessions with pension and family allowance reforms

The Austrian Nationalrat resumes sessions, focusing on ‘Aktivpension’ tax incentives for retirees and new regulations for family allowances affecting Ukrainian refugees.

2 sources. https://clstr.news/cluster/austrian-nationalrat-resumes-sessions-with-pension-and-family-allowance-reforms

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Cite as: Austrian pension and family benefit reforms. CLSTR, https://clstr.news/situations/austrian-pension-and-family-benefit-reforms