Austria is preparing a new policy aimed at encouraging people to remain in the workforce longer, as the country faces the growing challenges of an ageing population, according to Kurier. Labour and Social Affairs Minister Korinna Schumann has announced that the government is developing an incentive system designed to motivate companies to employ and retain workers over the age of 60.
The initiative, first announced in December, is expected to be completed by early 2027. According to the Federal Ministry of Labour and Social Affairs of Austria, the proposed system will introduce sector-specific targets for employing older workers. Businesses that meet or exceed these benchmarks could receive incentives or other advantages.
Officials say several models are currently being examined to find the most effective approach. The goal is not only to reward companies that keep experienced employees in their workforce, but also to change attitudes toward older workers. Many policymakers believe that the knowledge, skills and reliability of senior employees are often underestimated in today’s labour market.
To support the new policy, the government plans to launch a nationwide information campaign in July 2026. The campaign will focus on explaining the benefits of hiring and retaining older workers and will provide information about advisory services and funding opportunities offered by the Public Employment Service Austria (AMS). These services are intended to help companies better integrate older employees into their workplaces.
The ministry has also confirmed that from 2027 onward, about €100 million per year will be invested in active labour market policies. This funding will support job seekers and employees aged 60 and above, helping them stay active and competitive in the labour market.
The discussion comes at a time when demographic changes are becoming increasingly visible in Austria. Johannes Kopf, head of the AMS, recently warned that the labour market is likely to face growing pressure as the population ages. He emphasized that additional measures will be necessary to maintain a stable workforce in the coming years.
At the same time, new monitoring data on employment among older people has been released. The report provides updated figures on employment and unemployment rates for people aged 50 and above, with statistics separated by gender. Policymakers hope the data will help guide future decisions and ensure that older workers remain an important and valued part of Austria’s economy.
