Austria is preparing a major reform of its social welfare system, with the government promising stronger protection for those in need while placing greater emphasis on integration, education and employment.
Social Affairs Minister Korinna Schumann of the Social Democratic Party (SPÖ) has presented the main points of the proposed “New Social Assistance” to her coalition partners. The plan would create a common national framework for welfare payments, replacing the current system in which Austria’s nine federal states largely decide how social assistance is organised, reported by oe24.
Under the proposal, adults would receive fixed welfare payments based on the level of the equalisation supplement, commonly known as the minimum pension. Nationwide minimum rates would also be introduced for children. Rules concerning savings recipients are allowed to keep, additional needs and assessments of people’s ability to work would become more consistent across the country.
The reform would also introduce stronger incentives for people who are able to work. A new Integration Benefit, or IBH, would link full social assistance to two additional bonuses. The first could be earned through measures such as completing compulsory education, learning German and taking part in courses on Austrian values. The second would be connected to employment, with recipients qualifying after 13 weeks in a fully insured job or participation in an AMS labour-market programme.
These requirements would not apply to children, people with disabilities or those officially exempt from work, including people with certain care responsibilities and those who have reached retirement age. People with disabilities over 25 would also no longer be expected to take legal action against their parents to claim maintenance.
Children are another central focus of the reform. Their support would be divided between cash payments and benefits in kind, with the latter delivered through a digital benefit card. The aim is to guarantee every child a basic level of support, regardless of where in Austria they live.
The government is also planning a “Participation Card” for low-income families who earn too much to qualify for social assistance. From 2027, €60 million is planned for the scheme, helping families with school, sports and hygiene products as well as services such as learning support and leisure activities. The child tax credit would also rise from €700 to €1,000.
Schumann says the goal is to build a welfare system that offers a safety net without becoming a permanent destination, giving people both protection in difficult times and a clearer path towards an independent life.
