A Costly Mistake

“AMS Victims” Will Receive Up to 2,500 Euros This Year

A glitch at the AMS has costly consequences.(Bild: P. Huber)

Those affected by the AMS calculation error will soon receive an average of 1.10 euros per day, up to a maximum of 2,500 euros. The refunds are scheduled to be paid out before the end of this year. The “Krone” has the details.

As is well known, it all began with a serious calculation error. A woman from Linz was able to prove to the Public Employment Service (AMS) that there was a system error that no one had noticed—or that no one had cared about. When calculating unemployment benefits, the AMS deducted the full unemployment insurance contribution of three percent across the board. This included those who, due to their low income, shouldn’t have had to pay it at all. Ironically, the poorest were thus calculated on paper to be poorer than they actually were. The Administrative Court put an end to this on July 3.

Small amounts added up to a large sum
It is now clear what this means for the 250,000 people affected. On average, they were short about 1.10 euros per day—and on average, they can expect a retroactive payment of 400 euros. Of course, there are also those affected who will receive a much more substantial compensation. For example, anyone who received more than two euros too little per day and was on benefits continuously for three years will receive around 2,500 euros. As previously reported, a total of around 250,000 people are affected. Total costs, as reported by the “Krone”: around 135 million euros. The AMS is automatically reviewing all cases involving recipients of unemployment benefits and emergency assistance. Labor Minister Korinna Schumann (SPÖ) leaves no room for doubt: “People are entitled to this back payment.” And they don’t have to do anything themselves to receive it.

“The AMS will contact them as soon as the case has been reviewed. The money is to be disbursed by 2026 if possible,” according to the Ministry of Social Affairs. Payments will cover up to three years prior to September 22, 2026—the date on which the AMS received the information. And to ensure the agency doesn’t profit from its own slowness, the government intends to enshrine the following in law: The deadlines will be suspended from this effective date until every single case has been resolved and payments made. This is to prevent any further disadvantage.