AMS subsidies for educational leave and educational part-time work – the rollout begins

Key points of the new regulation at a glance:

Employees applying for a continuing education allowance or continuing education part-time allowance must, as a rule, have been employed in the same company for at least 12 months subject to unemployment insurance contributions prior to the start of educational leave or educational part-time work. A continuing education (part-time) allowance directly following statutory parental leave is not possible (there must be at least 26 weeks of employment subject to unemployment insurance contributions in between).

The employee must clarify with the AMS whether the intended training measure is eligible for funding in terms of its scope and labour market policy criteria.

The training measure must comprise at least 20 hours per week or, for persons with care obligations for children under seven years of age, at least 16 hours per week. If the ongoing gross monthly remuneration is below 50% of the ASVG maximum contribution basis (2026: € 3,465.00), the employee must mandatorily complete an educational counselling session (at an institute commissioned by the AMS) prior to submitting the application.

A written agreement between employer and employee on educational leave or educational part-time work is required. This agreement must include the employee’s educational status, the type and duration of the training measure, the educational objective and, in the case of educational part-time work, additionally the extent and scheduling of the reduced working hours.

The agreement only becomes legally effective (as of the following day) at the time when the continuing education (part-time) allowance is granted to the employee by the AMS. The employee is obliged to inform the employer without delay of this notification (grant or refusal).

For employees whose ongoing gross monthly remuneration amounts to at least 50% of the ASVG maximum contribution basis (2026: € 3,465.00), the employer must, in the case of educational leave (but not in the case of educational part-time work), declare in advance their willingness to pay a subsidy to the AMS continuing education allowance amounting to 15% thereof—paid directly to the employee on leave. In this case, the allowance paid by the AMS is reduced accordingly.

The social security contributions attributable to the training cost subsidy are borne entirely by the AMS—therefore, from a company perspective, there is an exemption from social security contributions. Contributions to occupational pension provisions (severance pay under the “Abfertigung Neu” system) are likewise not payable, and no wage tax is due (§ 3 para. 1 no. 5 lit. f EStG). However, contributions such as the employer contribution (DB), surcharge to the employer contribution (DZ) and municipal tax (KommSt) are still payable, as no exemption provision exists. From a practical standpoint, it is also to be assumed that the training cost subsidy must be reported in the payroll account and in the annual payroll statement (Form L16) under “other tax-exempt payments”.

The AMS allowance is paid directly to the employee. The amount of the continuing education allowance for educational leave is based on an income-dependent tiered model (see the following funding table). The amount of the continuing education part-time allowance is to be calculated analogously depending on income and the reduction in working hours.

AMS flat-rate table (values for 2026)

Tiered model for determining the amount of the continuing education allowance pursuant to § 37e AMSG.

The tiered model also applies to the continuing education part-time allowance (however, without any obligation on the part of the employer to bear 15% of the allowance). The amount of the allowance corresponds to the extent of the reduction in working hours (at least 25% and at most 50%).