Partial retirement from 1 November 2026: new rules, new application form

• Lower cap: The Austrian Public Employment Service (AMS) will only recognise pay compensation to the extent that, together with the reduced gross remuneration, it does not exceed 75% of the monthly maximum social insurance contribution base (2026: € 5,197.50; 2027: € 5,557.50). Previously, the cap was the full maximum social insurance contribution base.
• Upper reference remuneration excluding additional-hours and overtime pay: For block-model partial retirement arrangements, remuneration for additional hours and overtime (including lump-sum payments) is excluded from the upper reference remuneration. This already applied to continuous models commencing on or after 1 January 2026.

New AMS application form

To reflect these changes, the AMS has issued a new application form for partial retirement arrangements with entitlement commencing on or after 1 November 2026:

>>> Link to the german AMS form: https://www.ams.at/organisation/formulare?q=Altersteilzeitgeld

Practical guidance: amend the conditional validity clause

Some AMS offices have recently adopted a stricter interpretation of contractual clauses making the validity of a partial retirement agreement conditional on approval of the partial retirement allowance. To avoid objections, such clauses should in future be conditional on the application not being rejected by a formal administrative decision.

• Previous wording (objected to by some AMS offices):
  • “The partial retirement agreement is concluded subject to approval of the application for partial retirement allowance by the Austrian Public Employment Service (AMS).”
• Recommended wording for future use:
  • “The partial retirement agreement is concluded on condition that the Austrian Public Employment Service (AMS) does not reject the application for partial retirement allowance by a formal administrative decision.”