The course has been set

These tax bonuses are available for pensioners

The party leaders played poker and have now presented an agreement.(Bild: APA/HELMUT FOHRINGER)

The Council of Ministers will set the course for Austria's pensioners on Wednesday. From 2027, there will be tax incentives for working in old age. A total of 15,000 euros per year can then be earned tax-free. In addition, a separate employment package for older people is being put together to keep working senior citizens in employment.

Better late than never: shortly before Christmas, the federal government agreed on the incentives for working in old age that were promised in the government program. However, some of the goodies will not come into effect next year, but only from January 1, 2027. Here are all the measures and dates in detail:

• As reported, the tax-free allowance will amount to 15,000 euros a year from 2027 - for additional earnings in retirement or gainful employment after retirement age. 

• Employee contributions to pension insurance will be abolished from 2027 for those in employment at standard retirement age. This applies regardless of whether they are already drawing a pension or not, as well as for employees and self-employed persons.

• Tax-free overtime will also be extended for older employees in 2026. Until the end of 2026, the first 15 hours of overtime per month up to 170 euros will be tax-free.

• Holiday pay will be tax-free up to 400 euros per month from 2026 . With the new regulation, pay for work on public holidays will once again be tax-privileged and remain tax-free up to 400 euros per month. This will bring more net from gross, clear rules and legal certainty for employees and companies.

• A new employment package for older people is intended to keep even more people over 60 in employment in future and will come into force as early as 2026. The aim is to get and keep more people over 60 in employment - through prevention, age-appropriate jobs and a monitoring and incentive system. From summer 2026, monitoring will be expanded and the employment of older people will be regularly observed. From 2027, companies will receive targeted information and support so that people can remain healthy and qualified in employment for longer. An additional 100 million euros per year will be made available from 2027 for an effective mix of measures to promote the labor market for older people.

• Company pension schemes will become simpler and accessible to all employees from 2027. The reform aims to make company pension schemes more straightforward and accessible to all employees. From 2027, employees will be able to voluntarily transfer their severance pay NEW to a pension fund free of charge and thus build up an additional, lifelong pension.

Stocker: "Performance pays off"
"We are creating greater fairness for Austrians and at the same time providing an important boost for our country's recovery. This is a package of measures that puts the focus on the countless hard-working people in our country and makes it clear: performance pays off," says a satisfied ÖVP Federal Chancellor Christian Stocker.

"We are investing 100 million euros per year in active labor market policies for older people. And that's because we can see today: Very many people are not even in employment until they reach retirement age. Too many lose their job before then - and then, often after months or years of unemployment, have to go straight from unemployment to retirement. This is hard for those affected, and it is a loss of experience and know-how for companies," adds SPÖ leader Andreas Babler. 

The party leaders played poker and have now presented an agreement.(Bild: APA/HELMUT FOHRINGER)

Meinl-Reisinger: "This is a breakthrough"
And Foreign Minister Beate Meinl-Reisinger (NEOS) adds: "By strengthening the second pillar, we are strengthening our entire pension system. With a general pension fund agreement, we are creating the opportunity for all working people to build up an additional pension in the second pillar. For the first time, not just a privileged few, but all employees will have access to a company pension. This is a breakthrough in the pension system that will strengthen old-age provision in the long term and reduce inequalities."