"Asking is not enough"

Minister wants a quota for older workers in companies

Unemployment among older workers is high, Minister Schumann is putting new proposals on the table.(Bild: Zoran Zeremski - stock.adobe.com)

Social Affairs Minister Korinna Schumann is making a new push for older people to work longer. Similar to the quota for the disabled, a quota for older people is to be introduced for companies with a bonus-malus system. The aim is to keep people over 60 in employment. There was a prompt outcry of disapproval from the business community.

The budgetary situation and the need for consolidation are forcing the government to consider further measures to increase the employment rate of older workers. The government program provides for an incentive system to increase the employment of older people.

A "bonus-malus system" is not explicitly mentioned, but is a possibility for Schumann. Specifically, benefits for employers from the Family Burdens Equalization Fund (FLAF) could be linked to an older person quota.

Various elements can be added based on a basic model (see info box). Employers who meet the target quota continue to benefit from the current tax exemptions - such as exemptions from contributions to the social security system, the FLAF, accident insurance and unemployment insurance. If the employer quota is not reached, the tax exemptions for older employees will no longer apply for these companies in the coming year.

The basic model

• Based on the estimated additional employment of older workers required to achieve the pension sustainability path, industry target quotas for 60-plus employment are set.
• These industry target quotas are the benchmark for employer quotas for 60-plus employment.

An additional reduction in contributions to the FLAF is also possible for all 55- to 59-year-old employees of the employer if the employer reaches the target quota, as well as compensation payments for companies with more than 20/25 employees that have no or too few employees aged 60 and over. A one-off recruitment bonus of around 1000 euros per person in the 55+ age group is also conceivable for Schumann, as she said on ORF's "Pressestunde". In any case, the model should be revenue-neutral for the federal budget.

Unemployment rate particularly high among older people
Unemployment is particularly high in the 55+ age group. "Simply asking me to hire more older people will not be enough," said the Minister of Social Affairs, explaining why an "incentive system" is needed for companies. Quota regulations also exist for people with disabilities. 

Simply asking me to hire more older people will not be enough.

Sozialministerin Schumann setzt nicht auf Freiwilligkeit.

Bild: APA/HELMUT FOHRINGER

Trade union supports minister's proposal
Support came promptly from the trade union, Schumann's political home. Around 30 percent of companies with more than 20 employees do not employ anyone over 60, criticizes the ÖGB. An "older worker quota", in which companies with over 20 employees receive support if they reach this level and pay compensation if they do not, is "not only a question of justice, but also a matter of economic common sense. The ÖGB will support all political initiatives that initiate such an incentive system," emphasizes Federal Managing Director Helene Schuberth.

Outcry from business and industry 
Naturally, the reaction of the Wirtschaftsbund was completely different. There is no need for "moralizing" and "entrepreneur bashing from the last century", were the sharp words of Secretary General Kurt Egger. Instead, he called for a "fairness package" with measures to combat benefit fraud, as did Chamber of Commerce Secretary General Jochen Danninger on Saturday. The Federation of Austrian Industries also takes a negative view of the proposal: "This would be another measure that would burden companies, many of which are already struggling to survive, even more with bureaucracy," said Secretary General Christoph Neumayer.