Working in Austria Over 50: Support and Partial Retirement

Finding work can become more difficult after the age of 50, but Austria offers several measures to support older workers and the companies that employ them. This guide explains the main support available in 2026, how Altersteilzeit works before retirement and what may happen if you become unemployed.

What is Altersteilzeit?

Altersteilzeit allows older workers to reduce their working hours during the years before retirement while retaining a significant part of their income. Working hours can be reduced by between 40 and 60 per cent.

Half of the lost wage difference is replaced by a wage supplement called Lohnausgleich. With a 40 per cent reduction in working hours, you continue to receive 80 per cent of your previous income.

The employer continues to pay health, pension and unemployment insurance contributions based on the previous full amount. This means that these entitlements are not reduced. The amount of severance pay, or Abfertigung, is also not affected by the reduced working hours.

The arrangement can also benefit the employer because part of the wage costs is covered by the AMS through Altersteilzeitgeld. Altersteilzeit is based on an agreement with the employer; it cannot be requested unilaterally.

Eligibility and duration changes from 2026

Altersteilzeit can begin no earlier than five years before reaching the regular retirement age, known as the Regelpensionsalter. For agreements starting after 31 December 2025, the maximum period for which Altersteilzeitgeld is paid is gradually reduced:

• Agreements starting after 31 December 2025: up to 4.5 years
• Agreements starting after 31 December 2026: up to 4 years
• Agreements starting after 31 December 2027 and before 1 January 2029: up to 3.5 years
• Agreements starting from 1 January 2029: up to 3 years

From 1 January 2029, Altersteilzeit can only be agreed three years before the conditions for Korridorpension are met or before reaching the regular retirement age.

From 2026, the required period of employment with unemployment insurance also increases in stages, from 780 weeks to 884 weeks.

Continuous or block arrangement

The level of reimbursement paid to the employer also depends on how the working time is organised:

• Continuous Altersteilzeit (kontinuierliche Altersteilzeit): between 2026 and 2028, the reimbursed share is 80 per cent; from 2029, it is 90 per cent.
• Block arrangement (Blockzeit): the reimbursed share has been decreasing each year since 2024. No Altersteilzeitgeld is payable for block agreements starting from 2029.

Support for employers hiring people over 50

If you are looking for work, knowing about these measures may help when discussing your employment with a potential employer.

• Eingliederungsbeihilfe: AMS may provide wage-cost support to an employer that hires an unemployed person over 50 in employment with full insurance coverage. The amount and duration are agreed between AMS and the employer on a case-by-case basis.
• Qualifizierungsförderung für Beschäftigte: further training for employees over 50 may be supported with 50 per cent of the course costs, up to a maximum of 10,000 euros per person and application. The course must last at least 16 hours, and the application must be submitted to AMS no later than one week before the course begins.
• Kombilohnbeihilfe: this may help people return to work part-time.

Beschäftigungsinitiative 50+

Since 2018, AMS has provided 165 million euros annually for the labour-market integration of older workers through the Beschäftigungsinitiative 50+.

The programme is intended for people who are at least 50 years old and have been registered with AMS for more than 90 days. In cases involving health restrictions or a longer absence from the labour market, such as returning to work after a career break, it may also be available before the 90-day period has ended.

How long can unemployment benefit be paid after 50?

The basic entitlement to Arbeitslosengeld is 20 weeks. A longer insurance record and older age can extend this period:

• Basic case: 20 weeks
• 156 weeks of insured employment: 30 weeks
• Over 40, with at least 312 weeks in the previous 10 years: 39 weeks
• Over 50, with at least 468 weeks in the previous 15 years: 52 weeks

If you apply for a pension, a pension advance called Pensionsvorschuss may be available while you wait for the decision. The conditions for Arbeitslosengeld or Notstandshilfe must be met, apart from the work-capacity requirement. The amount is based on the relevant benefit.

Lower contributions at older ages

• Accident insurance: the 1.1 per cent contribution ends from the month following your 60th birthday, but the insurance cover remains in place. This does not affect your net wage because the contribution is paid only by the employer.
• Unemployment insurance: compulsory insurance ends when all conditions for the old-age pension have been met, except for Korridorpension, and no later than one year after reaching the minimum age for Korridorpension.
• Bonusphase: if you continue working after reaching retirement age instead of drawing your pension, the employer and employee shares of the pension insurance contribution are reduced by half. However, your pension account is credited based on the full contribution base.

Frequently asked questions

Can I request Altersteilzeit on my own?

No. Altersteilzeit is based on an agreement with the employer.

Will Altersteilzeit reduce my pension?

The employer continues to pay pension insurance contributions based on the previous amount, so this entitlement is not reduced.

Who applies for Eingliederungsbeihilfe?

The employer receives the support from AMS. The employer and AMS agree the details between themselves.

When is 52 weeks of Arbeitslosengeld possible?

If you are over 50 and had employment covered by unemployment insurance for at least 468 weeks during the previous 15 years.

Practical steps

1. Ask your employer whether an Altersteilzeit agreement is possible and whether the continuous or block arrangement would apply.
2. Check the agreement start date, the applicable maximum duration and the required insurance period.
3. If you are looking for work, ask AMS whether Eingliederungsbeihilfe, Qualifizierungsförderung für Beschäftigte, Kombilohnbeihilfe or Beschäftigungsinitiative 50+ may apply.
4. If you become unemployed, register with AMS and check your entitlement period based on your age and insurance record.
5. If you have applied for a pension, ask whether Pensionsvorschuss is available while your application is being decided.
6. For an individual assessment, consult an employment-law, social-security or other relevant professional. This article is based on information available online and is not professional advice.

Source: oesterreich.gv.at