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 leading to a low traditional pension amount, a support known as “Mindestpension” or minimum pension is available in the country.

There is no official minimum pension in Austria, but supplementary aid is available

One characteristic of the Austrian pension system is that there is no general minimum pension. Thus, there is no amount guaranteed for all retirees. Instead, those who receive a very low pension and have a social need may qualify for a supplementary balancing aid known as Ausgleichszulage.

Ausgleichszulage

The Ausgleichszulage can be claimed by those who legally reside in Austria and whose monthly income is less than 1,217.96 euros for individuals or less than 1,921.46 euros for couples (as of 2024). These amounts may change periodically 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 set for the year and the pension. As a result, the eligible retirees’ pensions will reach 1,217.96 euros (as individuals, 2024 amount) or 1,921.46 euros as a couple (2024 amount) even if their pension would otherwise be lower.

Single, widowed retirees	1,217.96 euros individual pension
Retired couple living together	1,921.46 euros couple pension

Examples:

• If a retiree’s pension is 1,000 euros, then the Ausgleichszulage amount is 217.96 euros to meet the reference minimum of 1,217.96 euros.
• If a retired couple’s combined pension is 1,850 euros, then the Ausgleichszulage amount is 71.46 euros to meet the reference minimum of 1,921.46 euros.

When retiring, the pension application automatically includes a request for the Ausgleichszulage, so there is no need to apply separately. However, the Ausgleichszulage must be requested separately:

• If eligibility arises later, or
• if someone becomes eligible due to a decrease in income.

The calculation of the Ausgleichszulage takes into account not only the pension but also any other income. Therefore, it may happen that if someone loses a supplementary income and their pension falls below the set annual target amount, they become eligible for the Ausgleichszulage.

Ausgleichszulagenbonus

The Ausgleichszulagenbonus is an additional option for those who have paid into the pension insurance for many years. This bonus is available to those who have accumulated at least 30 years of contribution to the pension insurance. The eligibility is determined by the Pensionsversicherungsanstalt, or Pension Insurance Institute. The reference amount for the Ausgleichszulagenbonus is 1,325.24 euros, with the bonus being up to a maximum of 180.31 euros (as of 2024).

Thus, the Austrian state rewards retirees who have worked longer and continued paying contributions in Austria with an extra amount. If someone does not have an independent pension of 1,325.24 euros but has 30 years of eligibility, their pension will be supplemented, with the condition that the maximum amount of the Ausgleichszulagenbonus is 180.31 euros per month.

Austrian pensions are paid 14 times a year, so there is a 13th and 14th month pension. The Ausgleichszulage and Ausgleichszulagenbonus, if applicable, are also paid 14 times a year.

Austrian Pension Eligibility

However, it is important to note that those born after January 1, 1955, must meet strict conditions to qualify for an Austrian pension:

• They need 180 months of insurance, equivalent to 15 years of insured time.
• Additionally, at least 84 months must be spent as an employee, equivalent to 7 years.

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

However, it must also be remembered that an Austrian pension cannot be claimed before reaching the 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 various options for retirement and support for those in need. The Ausgleichszulage and Ausgleichszulagenbonus provide opportunities for low-income individuals to access adequate support, while adherence to legal requirements helps maintain the system and ensure fair retirement.

How many years of employment are needed for a pension in Austria?

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

How much pension is granted in Austria after 10 years of work?

A pension is only granted in Austria after 10 years of work if there is also a total of 15 years of insurance.

What happens to service periods acquired outside Austria?

According to EU law, all pension eligibility periods acquired in EU member states are considered for pension purposes. This means that all contributions made in each country where a person has pension rights are preserved until the person reaches pension eligibility according to the law of that country.

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

When someone applies for an old-age pension in their place of residence or the last country where they acquired pension eligibility, they must indicate any periods of pension eligibility acquired abroad. However, it is not necessary to apply separately for a pension in each contracting state. The pension provider to which the application is submitted will automatically initiate the cross-border pension eligibility determination process. If the employee has at least one year of pension eligibility, each country will separately pay a pension according to the rules applicable in each case when the person reaches the relevant retirement age.