AMS reforms: The rule changes long-term unemployed people in Austria need to know
Austria's unemployment agency supports people in long-term unemployment, but the rules are about to change as the government presents measures to fight the labour shortage by encouraging part-time work. Here's what you need to know.
Austria's labour shortage has been affecting the country for years now - at the height of the pandemic, there were 120,000 vacancies registered with the country's Employment Agency AMS, though that has reduced to 90,000 in recent months, according to a Der Standard report.
Still, as the economy picks up again, economists expect the shortages to affect all sectors of the Austrian labour market. The federal government has announced several measures to incentivise people to work longer hours and for longer, with incentives created for people who postpone their retirement, for example.
READ ALSO: Why job sectors in Austria are short of workers
Now, Austria's Ministry of Labour has presented an initiative to encourage those who have been unemployed for a long time to find a new job - even if on a part-time basis.
So what's changing?
The AMS already supports people who have been unemployed for more than half a year or are over 50 and have been unable to find a new full-time job for more than three months with a "wage supplement".
The rule has been that anyone who starts a job and works at least 20 hours a week can apply to the AMS to increase their net wage. The AMS pays the person concerned a supplement to bring their income to a level that corresponds to 130 percent of the unemployment benefit or unemployment assistance to which they are entitled.
For example, if you are entitled to € 1,000 per month in unemployment benefits, take on a 20-hour job, and earn € 900, you will receive an additional € 400 from the AMS, making a total of € 1,300. This increases the amount to 130 percent of the unemployment benefit.
READ ALSO: Taxes, benefits and price increases: the money changes in Austria in 2024
In future, the AMS will generally only provide support if the employee is employed for at least 30 hours a week. However, employees will receive a higher supplement, up to 55 percent.
Anyone working 30 hours a week in the above example would receive a wage of € 1,350, which is just as lucrative as working 20 hours and applying for combined wage support. Thanks to the higher bonus, income can rise to up to € 1,550 in future with the support.
There are also new rules for people with disabilities, for whom the obligation to be looking for a job for six months will no longer apply.
They can apply for the allowance from day one, the report added. Those with caring responsibilities can continue to make use of the old model and apply for a top-up of 20 hours per week.
READ ALSO: How long do I have to work for in Austria to get unemployment benefits?
Last year, there were around 5,700 new applications for the "combined wage subsidy".
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Austria's labour shortage has been affecting the country for years now - at the height of the pandemic, there were 120,000 vacancies registered with the country's Employment Agency AMS, though that has reduced to 90,000 in recent months, according to a Der Standard report.
Still, as the economy picks up again, economists expect the shortages to affect all sectors of the Austrian labour market. The federal government has announced several measures to incentivise people to work longer hours and for longer, with incentives created for people who postpone their retirement, for example.
READ ALSO: Why job sectors in Austria are short of workers
Now, Austria's Ministry of Labour has presented an initiative to encourage those who have been unemployed for a long time to find a new job - even if on a part-time basis.
So what's changing?
The AMS already supports people who have been unemployed for more than half a year or are over 50 and have been unable to find a new full-time job for more than three months with a "wage supplement".
The rule has been that anyone who starts a job and works at least 20 hours a week can apply to the AMS to increase their net wage. The AMS pays the person concerned a supplement to bring their income to a level that corresponds to 130 percent of the unemployment benefit or unemployment assistance to which they are entitled.
For example, if you are entitled to € 1,000 per month in unemployment benefits, take on a 20-hour job, and earn € 900, you will receive an additional € 400 from the AMS, making a total of € 1,300. This increases the amount to 130 percent of the unemployment benefit.
READ ALSO: Taxes, benefits and price increases: the money changes in Austria in 2024
In future, the AMS will generally only provide support if the employee is employed for at least 30 hours a week. However, employees will receive a higher supplement, up to 55 percent.
Anyone working 30 hours a week in the above example would receive a wage of € 1,350, which is just as lucrative as working 20 hours and applying for combined wage support. Thanks to the higher bonus, income can rise to up to € 1,550 in future with the support.
There are also new rules for people with disabilities, for whom the obligation to be looking for a job for six months will no longer apply.
They can apply for the allowance from day one, the report added. Those with caring responsibilities can continue to make use of the old model and apply for a top-up of 20 hours per week.
READ ALSO: How long do I have to work for in Austria to get unemployment benefits?
Last year, there were around 5,700 new applications for the "combined wage subsidy".
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