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MONEY

EXPLAINED: Everything you need to know about Austria’s climate bonus payment

Residents in Austria will receive up to €200 to compensate for the increase in energy and fuel prices created by the eco-social tax reform. Here's what you need to know.

EXPLAINED: Everything you need to know about Austria's climate bonus payment
Austrian Minister for Climate Protection, Environment, Energy, Mobility, Innovation and Technology Leonore Gewessler. Photo: Alex Halada/AFP

The climate bonus, or Klimabonus in German, is an essential part of Austria’s eco-tax reform, a larger project with several measures to incentivise environmental choices such as riding the public transport.

The bonus would offset some of the costs brought by a new CO2 tax in Austria.

READ ALSO: Austrian government unveils ‘eco’ tax reform

“With the Klimabonus, we ensure that climate-friendly behaviour is rewarded and the people in our country are relieved. If you take good care of the climate, you pay less CO2 tax and end up having more of this money left”, Climate Minister Leonore Gewessler (Greens) said on Twitter.

The Austrian government plans to set up a web site with more information on the bonus in June. Until then, here is what you need to know about the new compensation and how to get it.

Who is entitled to the payment?

Anyone who has had their primary residence in Austria for at least 183 days will be entitled to the bonus. Children are also entitled, but if they are younger than 18 years old, they will receive 50 per cent of the respective amount of the climate bonus.

READ ALSO: EXPLAINED: How to get your €500 Kurzarbeit bonus in Austria

“This is the first time that all people, regardless of age, place of residence, regardless of employment or pension or training status, have received a federal payment,” said Gewessler on Friday in the Ö1 broadcast.

What is this ‘respective amount’?

Not everyone will receive the same amount of money. The value changes depending on where the recipient lives and what is the offer of public transport there. Viennese, then, will receive the lowest amount of money: a one-off € 100 payment.

READ ALSO: EXPLAINED: How to claim your €200 voucher for electronics repair in Austria

There are four levels of payment depending on the municipality: €100 for urban centres with the highest-ranking development (which is only Vienna), €233 for urban centres with good development of public transport, €167 in centres and surrounding areas with good basic development of the public system, and € 200 for rural municipalities.

If you live in Austria’s second-largest city, Graz, you fall into the second category and should expect a €133 bonus.

Some exceptions to the geographical rule apply, so people with disabilities who cannot use public transport will receive the total climate bonus (€200) regardless of where they live.

The Federal Government had already stated it estimated that a third of Austria’s population would receive the highest bonus.

How to get the bonus?

The payment is pretty straightforward; there is no need to apply for it, and it will be done directly into your bank account, just make sure that you have it up to date on the FinanzOnline website – the final date to do so is June 30th.

Those who receive a pension and other benefits will receive the bonus in that same bank account.

READ ALSO: EXPLAINED: How freelancers in Austria can pay four times less in social insurance

It is worth mentioning that the bank account doesn’t necessarily need to be from an Austrian bank.

People who don’t have a registered bank account will receive a letter with a voucher that can be redeemed in shops or exchanged for cash at a bank, Gewessler said.

According to the Ministry, payments should start at the beginning of October, and those receiving a transfer will not have to wait for long to see the money in their bank accounts. However, people receiving letters with the vouchers could have to wait a few weeks.

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POLITICS

How much do Austrian politicians earn as a monthly salary?

Politicians in Austria are getting a 5.3 percent salary increase in 2023 as inflation rises in the country. So how much will they earn?

How much do Austrian politicians earn as a monthly salary?

The rising inflation rate, which is expected to be at 10.6 percent in November, is reflected in the salaries of politicians in Austria, according to the official gazette of the Wiener Zeitung.

According to Austrian law, all salaries are calculated based on the income of the members of the National Council, the Austrian Parliament. Next year, they will receive €9,873 gross per month – €497 more than their salaries in 2022. The values were rounded to the whole euro amount. 

READ ALSO: How much do you need to earn for a good life in Austria?

So, how much are the leading politicians going to earn as a monthly gross salary in 2023?

  • Bundespräsident: the head of the Austrian State (Federal President) will earn €26,701 per month. Alexander Van der Bellen was reelected to the position and should stay in the job for six more years
  • Bundeskanzler: the head of the Austrian government (Chancellor) will earn €23,840 per month. That’s the salary of Karl Nehammer (ÖVP), who is expected to run for reelection in the next national elections set for 2024
  • Vizekanzler: the current vice-chancellor is Werner Kögler (Greens), and he is set to earn €20,979 from 2023
  • NR-Präsident: this refers to the leader of the National Council (Nationalrat, in German), who earns €20,026. Wolfgang Sobotka (ÖVP) holds the position
  • Landeshauptleute: this German word literally means “main persons of the province”. (Land means country, but it actually refers to the bundesländer, the country’s states or provinces). These are the current governors of the Austrian provinces, such as Michael Ludwig (SPÖ), mayor of the city-state of Vienna. They’ll earn €19,072 per month
  • Ministerin/Minister: Ministers of the federal government, including Health and Social Minister Johannes Rauch (Greens), will earn €19,072 every month
  • Landesrätin/-rat: the provincial councillors should earn €17,771 every month from 2023
  • Staatssekretärin/-sekretär: State secretaries, who play the part of Ministers in the provincial level, will earn €17,165
  • Bundesratsmitglieder: a “member of the Bundesrat”, which is the upper house in the Austrian parliament, will earn €4,936 per month

READ ALSO: Explained: How to understand your payslip in Austria

In Austria, hired employees are paid 14 times per year, with extra salaries ahead of summer holidays and Christmas.

Unless the National Council decides against the pay rise, the increase will come into effect on January 1st 2023.

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