Austrian Pension and Minimum Pension

The Austrian pension system is one of the most advanced and comprehensive in Europe. However, for those with low incomes or other reasons that result in a low traditional pension amount, there is a benefit available in the country that is often referred to as “Mindestpension” or minimum pension.

There is no official minimum pension in Austria, there is supplementary assistance

One characteristic of the Austrian pension system is that there is no universal minimum pension. Therefore, there is no amount that every pensioner would receive guaranteed. Instead, those who receive extremely low pensions and face social needs may be eligible for a supplementary equalization allowance, known as Ausgleichszulage.

Compensation Allowance

The Ausgleichszulage can be received by those who legally reside in Austria and have a monthly income of less than 1,217.96 euros as a single person, or less than 1,921.46 euros for couples (as of 2024). These amounts may change from time to time depending on living conditions and inflation. The Ausgleichszulage is therefore not a fixed amount, but a supplement that represents the difference between the target amount determined in a given year and the pension. As a result, eligible pensioners’ pensions will reach 1,217.96 euros (for a single person, 2024 amount) or 1,921.46 euros (for couples, 2024 amount) even if the pension would be lower.

• Single or widowed pensioners: €1,217.96 individual pension
• Retired couples living together with their spouse: €1,921.46 couple’s pension

Examples:

• if a retiree’s pension is 1000 euros, then the Ausgleichszulage amount is 217.96 euros, to reach the reference minimum amount of 1217.96 euros
• if a retired couple’s joint pension is 1850 euros, then the Ausgleichszulage amount is 71.46 euros, to reach the reference minimum amount of 1921.46 euros

Upon retirement, the pension application also qualifies as an Ausgleichszulage request, which does not need to be separately applied for. However, the Ausgleichszulage must be applied for separately:

• if the entitlement arises later or
• becomes eligible due to a decrease in income.

When calculating the Ausgleichszulage, they look not only at the pension but also at all other income. So it can happen that someone loses a supplementary income, and their pension falls below the specified annual target amount, at which point they become eligible for the Ausgleichszulage.

Compensation Allowance Bonus

The Ausgleichszulagenbonus is an additional option for those who have paid contributions to pension insurance for many years. This bonus can be received by those who have acquired at least 30 years of contribution time in pension insurance. Eligibility is determined by the Pensionsversicherungsanstalt, or the Pension Insurance Institute. The reference amount for the Ausgleichszulagenbonus is 1,325.24 euros, and the bonus can be up to 180.31 euros (as of 2024).

With this, the Austrian state rewards those pensioners with an extra amount who continued working and paid their contributions in Austria. For those who do not have an individual pension of 1,325.24 euros but have 30 years of eligibility, their pension will be supplemented with the provision that the maximum amount of the Ausgleichszulagebonus can be 180.31 euros per month.

Austrian pensions are paid 14 times a year, so there is a 13th-month pension and a 14th-month pension. Any potential Ausgleichszulage and Ausgleichszulagebonus are also paid 14 times a year.

Austrian Pension Eligibility

However, it is important to note that persons born after January 1, 1955, must meet strict conditions for eligibility for the Austrian pension:

• They need 180 months of insurance time, which corresponds to 15 insurance years.
• In addition, they must spend at least 84 months working, which corresponds to 7 years.

It is important to note that periods such as caring for a disabled child, caring for a close relative (starting from at least the 3rd care level), and family hospice quarantine are also counted as employment time.

However, it should also be remembered that a pension cannot be claimed before the Austrian retirement age. Currently, the retirement age for men is 65 years, while for women it can vary between 60 and 65 years (as of 2024).

The Austrian pension system offers numerous opportunities for retirement and support for those who need it. The Ausgleichszulage and Ausgleichszulagenbonus provide opportunities for low-income individuals to access appropriate support, while adhering to legal regulations helps maintain the system and ensure fair retirement.

How many years of work experience are required for retirement in Austria?

In summary: Austrian pension is available after 15 years of insurance coverage, of which at least 7 years must be employment. Pension can only be claimed after reaching the retirement age, which is currently 65 for men and between 60-65 for women. Additionally, various supplementary support is available for those with low pensions.

How Much Pension Do You Receive in Austria After 10 Years of Employment?

After 10 years of employment, a pension in Austria is only granted if there is a total of 15 years of insurance period.

What happens with service time acquired outside of Austria?

According to EU law, all pension entitlement periods acquired in EU member states are taken into account for pension purposes. This means that in every country where someone had pension entitlements, pension contributions are preserved until the person reaches pension eligibility according to the laws of that country.

However, EU law does not require one country to transfer pension entitlement periods acquired in another country. Therefore, already paid contributions are not transferred to another country.

When someone claims old-age pension at their place of residence or has acquired the last pension eligibility period in the country, they must indicate that they have also acquired pension eligibility periods abroad. However, it is not necessary to apply for a pension separately in each contracting state. The pension provider to which the application is submitted will automatically initiate the process of determining cross-border pension eligibility. If the employee has had pension eligibility for at least one year, each country will pay a pension separately according to the applicable rules, once the person reaches the relevant pension eligibility age.

This means that Hungarians living in Austria will receive their potential Hungarian pension from the Hungarian state, according to the currently valid Hungarian legal regulations and extent. Meanwhile, the Austrian state will pay an Austrian pension according to the Austrian legal regulations and extent at that time. The years acquired in different countries cannot be combined; they will always be assessed separately, by country, by the local pension provider.