Calculated Incorrectly
AMS Underpaid: Back Pay for Those Affected
The Public Employment Service (AMS) has been paying unemployed people too little—and has been doing so for several years. A ruling by the Administrative Court (VwGH) shows that unemployment benefits were calculated incorrectly. Numerous people may now be entitled to back payments.
Kronen Zeitung als bevorzugte Google-Quelle hinzufügen The case was initiated by a complaint from a woman in Upper Austria who had been receiving unemployment benefits since 2022. The AMS had set her daily benefit at 21.09 euros—based on a gross monthly salary of 1,123.86 euros plus pro-rated special payments.
The woman disagreed: In her view, the AMS had deducted excessive social security contributions from her previous income and, as a result, calculated her unemployment benefits too low, as reported by *Die Presse*.
Legal Dispute: Court Initially Ruled in Favor of the AMS
At the heart of the legal dispute was the question of how unemployment insurance deductions should be factored into the calculation of the net assessment basis. The AMS systematically applied the regular maximum employee rate. Initially, the court ruled in favor of the Employment Service because a flat-rate average calculation is used when determining unemployment benefits.
Woman Ultimately Prevailed
However, following an extraordinary appeal to the Administrative Court, the Administrative Court has now ruled that the calculation of unemployment benefits must also take into account the reduced unemployment insurance contributions for people with low incomes. A flat-rate average calculation to the detriment of the insured person contradicts the statutory goal of aligning unemployment benefits as closely as possible with actual net earnings.
For gross incomes up to 2,225 euros, no personal unemployment insurance contribution is due in 2026; reduced rates apply up to 2,630 euros. The exact legal implications are currently being analyzed, and guidelines for the AMS are being developed, the Ministry of Social Affairs told the “Presse.”
Ruling Could Also Be Relevant for Others
The ruling could also be significant for other low-income individuals: Since incorrect calculations can be corrected retroactively for up to three years, those affected with low prior income have the option to apply to the AMS for a review and a corresponding back payment.
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