Austria’s new 2025–2026 budget includes big changes that will affect pensions, healthcare, education leave, and job support. The government plans to save money while also investing in key programs. The Ministry of Labor, Social Affairs, Health, and Consumer Protection must cut spending by €134.7 million in 2025 and €177.5 million in 2026.
To help reach these savings, some social benefits will no longer increase with inflation in 2025 and 2026. This includes rehab and retraining support, but not health or nursing care benefits.
One major change is to early retirement rules. Starting soon, people will need to be 63 years old with 42 years of insurance to retire early, instead of 62 and 40 years. Also, in the first year of retirement, pensions will only receive half of the inflation adjustment.
The education leave program will end in April 2025. A tougher version will begin in 2026 with a smaller budget.
The E-Card service fee will rise from €13.80 to €25 in 2026, and even retirees will have to pay it by 2027, unless they receive a minimum pension. The money will go to the health system. Also, retired people will pay more for health insurance, increasing from 5.1% to 6%.
However, there will be some relief, such as a new cap on medicine costs for people who need many prescriptions.
Long-term unemployed people will still be able to earn a small income while looking for full-time work, especially older workers.
At the same time, the government will increase funding for jobs, disability support, outpatient care, women’s health, and youth mental health.
Overall, the budget aims to save and invest wisely, with equal spending cuts and support measures planned for 2025.
