The Austrian government has recently introduced a “Labour Market Package” which aims to promote older workers and to reintegrate them into the labour market. The key elements of these measures are directed towards small and medium sized businesses and provide employment incentives by reducing non-wage employment costs for employees aged 50 or above.

The most significant reductions are that, from 1 July 2014, accident insurance contributions will be reduced from 1.4% to 1.3% of the employee’s gross salary and, from 1 January 2015, the employer’s contribution to the Austrian Insolvency Remuneration Fund will be reduced from 0,55% to 0,45% of the employee’s gross salary.

Over and above these reductions, additional funds will be provided to the Labour Market Service to enable them to offer extended support to the long term unemployed aged  50 or older.