# Vienna labor market and employer levy policy

> Live situation record from CLSTR: https://clstr.news/situations/vienna-labor-market-and-employer-levy-policy
> Updated: 2026-10-19T16:56:40.000Z. Sources: 6. Developments: 2.

In September 2026, employment in Vienna rose to 946,692 people, a 0.6 percent increase from the previous year. This growth was largely driven by an increase in workers over the age of 55, a demographic that saw a 3.2 percent rise. While sectors like healthcare and gastronomy grew, the retail sector saw a decline in jobs.

Following these demographic shifts, the Vienna city government, led by the SPÖ and supported by NEOS, announced plans to expand the employer levy to include employees over the age of 55. City Councilor Barbara Novak defended the decision, stating that previous exemptions were no longer appropriate and that lower non-wage labor costs would not impact job creation for older workers.

The proposal has faced criticism from ÖVP opposition members, who argue that increasing labor costs burdens the economy and hinders job creation. Critics Ingrid Korosec and Hannes Taborsky claimed the policy contradicts the administration’s goal of maintaining employment until retirement age.

## Timeline

### 2026-10-19: Vienna government expands employer levy to workers over 55

Vienna's city government plans to expand the employer levy to workers over 55, a move the ÖVP criticizes as a burden on the economy and older employees.

4 sources. https://clstr.news/cluster/vienna-government-expands-employer-levy-to-workers-over-55

### 2026-10-16: Vienna employment rises as older workforce grows

Vienna's employment rose to nearly 947,000 in September 2026, with significant growth seen among workers over age 55 despite declines in the retail sector.

2 sources. https://clstr.news/cluster/vienna-employment-rises-as-older-workforce-grows

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Cite as: Vienna labor market and employer levy policy. CLSTR, https://clstr.news/situations/vienna-labor-market-and-employer-levy-policy