No repayment

Insolvency Fund Chief Received 30,000 Euros in Excess Salary

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21.10.2026 19:28

Due to an error, the managing director of the Insolvency Fund received too much money; according to the ministry, it is not legally possible to reclaim the funds. And this despite the fact that the fund is already on the verge of bankruptcy.

The Austrian Insolvency Fund, which protects employees when their employer becomes insolvent, is facing bankruptcy. As reported, Labor Minister Korinna Schumann (SPÖ) expects a shortfall of 155 million euros by 2027.

The Court of Auditors criticized this, as the fund is required by law to maintain sufficient reserves. President Margit Kraker therefore considers an increase in contribution rates over the next two years to be necessary. Schumann also intends to do this. However, the coalition partners are resisting the move.

Margit Kraker, President of the Federal Court of Auditors, shares Minister Korinna Schumann’s ...
Margit Kraker, President of the Federal Court of Auditors, shares Minister Korinna Schumann’s view: contribution rates must be raised.(Bild: Achim Bieniek)

The ÖVP and NEOS insist on first reviewing the fund’s expenditures and structure, in the hope that this will allow them to save the missing funds. However, there will likely be no way around providing additional funds for the fund.

As the “Krone” has learned, a subsidy from the budget—which is actually just as tight—is currently being discussed as an alternative option. This would allow the fund to be replenished without increasing non-wage labor costs.

No Repayment Due to “Good Faith”
Against this backdrop, another point of criticism raised by the Court of Auditors caused a stir: The fund’s managing director was overpaid by just under 30,000 euros—and the money was not reclaimed.

The additional payment resulted from an adjustment to the salary seniority. By the time it became clear that the calculation was too high, the money had already been “spent in good faith.” The department takes the legal position that a demand for repayment is therefore not possible.

This article has been automatically translated,
read the original article here.

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