From 1 January 2027, the Aktivpension scheme provides social insurance and tax incentives for continuing to work after reaching the statutory retirement age, both for those earning additional income while drawing an old-age pension and for those deferring retirement.
The City of Vienna plans to extend the Vienna employer levy (U-Bahn tax) to employees aged over 55, who are currently exempt. In addition, individuals working under free service contracts (freie Dienstnehmer/innen) are also to be brought within the scope of the levy.
As reported in previous months, the Budget Accompanying Act 2027–2028 introduces two changes to the calculation of pay compensation for partial retirement arrangements with entitlement commencing on or after 1 November 2026:
Between 1 July 2026 and 31 December 2026 (with payment through a retroactive payroll adjustment permitted until 15 February 2027 at the latest), employee bonuses for the 2026 calendar year of up to € 500.00 per employee may be paid free of wage tax, provided that the bonuses are based on a qualifying wage-setting instrument and meet the statutory requirement of being paid in addition to existing remuneration.
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