Equalisation Supplement & Pension Bonus/Equalisation Supplement Bonus
Ausgleichszulage und Pensionsbonus/Ausgleichszulagenbonus
Coverage
- Persons legally residing in Austria whose pension entitlement according to the statutory pension insurance schemes does not reach a certain minimum level.
- Civil servants born after 31/12/1975 or appointed after 31/12/2004 (civil servants appointed under old law can apply for a so-called supplementary allowance (Ergänzungszulage) under similar conditions as for the equalisation supplement).
Financing
- The equalisation supplement and the pension bonus/equalisation supplement bonus are part of the statutory pension schemes but are tax-financed out of the general federal budget.
Administration
- Self-administered federal pension carriers take administrative responsibility for all affairs related to the scheme.
- The ‘Federal Pension Insurance Institution’ is responsible for employees and equally treated groups.
- The ‘Social Insurance Institution of the Self-Employed’ is responsible for self-employed persons including farmers and their families.
- The ‘Insurance Institution for Civil Servants, Railways and Mining’ (Versicherungsanstalt öffentlich Bediensteter, Eisenbahnen und Bergbau) administers the pension scheme for federal civil servants.
Qualifying Conditions
- Legal residence in Austria and entitlement to statutory pensions benefits (according to the Austrian statutory pension scheme but also the schemes of other EU Member States).
- Income below the reference level (Ausgleichszulagenrichtsatz) defined by law as (a kind of) subsistence level.
- Benefits are means-tested based on monthly pension income (gross) and other income (net, including maintenance claims) of the elderly person and his/her spouse/registered partner.
- Additional pension bonus/equalisation supplement bonus (i.e. application of a higher reference rate) is granted in case of 30/40 years of insurance.
- Uniform rules for all persons entitled to statutory pension benefits according to the statutory pension insurance (type of employment/respective pension scheme not relevant).
Benefits
- The amount of benefits is based on the reference level minus income.
- If the elderly person is married or in a registered partnership, a higher reference level is applicable; in return the income of the spouse/partner is also taken into account; the reference level is also higher if the recipient has children.
- Higher benefits are granted if the person qualifies for the pension bonus/equalisation supplement bonus.
- The flat-rate benefit rates are adjusted yearly based on changes in prices/incomes (inflation rate) or a special law that provides for a higher adjustment.
- Benefits are granted 14 times per year as long as qualifying conditions persist; benefit payments are suspended if the beneficiary leaves Austria for a period exceeding 60 days.
- Benefits are subject to income tax (as far as above the income tax limit).
Coverage
Financing
Administration
Qualifying Conditions
Benefits
- Persons legally residing in Austria whose pension entitlement according to the statutory pension insurance schemes does not reach a certain minimum level.
- Civil servants born after 31/12/1975 or appointed after 31/12/2004 (civil servants appointed under old law can apply for a so-called supplementary allowance (Ergänzungszulage) under similar conditions as for the equalisation supplement).
- The equalisation supplement and the pension bonus/equalisation supplement bonus are part of the statutory pension schemes but are tax-financed out of the general federal budget.
- Self-administered federal pension carriers take administrative responsibility for all affairs related to the scheme.
- The ‘Federal Pension Insurance Institution’ is responsible for employees and equally treated groups.
- The ‘Social Insurance Institution of the Self-Employed’ is responsible for self-employed persons including farmers and their families.
- The ‘Insurance Institution for Civil Servants, Railways and Mining’ (Versicherungsanstalt öffentlich Bediensteter, Eisenbahnen und Bergbau) administers the pension scheme for federal civil servants.
- Legal residence in Austria and entitlement to statutory pensions benefits (according to the Austrian statutory pension scheme but also the schemes of other EU Member States).
- Income below the reference level (Ausgleichszulagenrichtsatz) defined by law as (a kind of) subsistence level.
- Benefits are means-tested based on monthly pension income (gross) and other income (net, including maintenance claims) of the elderly person and his/her spouse/registered partner.
- Additional pension bonus/equalisation supplement bonus (i.e. application of a higher reference rate) is granted in case of 30/40 years of insurance.
- Uniform rules for all persons entitled to statutory pension benefits according to the statutory pension insurance (type of employment/respective pension scheme not relevant).
- The amount of benefits is based on the reference level minus income.
- If the elderly person is married or in a registered partnership, a higher reference level is applicable; in return the income of the spouse/partner is also taken into account; the reference level is also higher if the recipient has children.
- Higher benefits are granted if the person qualifies for the pension bonus/equalisation supplement bonus.
- The flat-rate benefit rates are adjusted yearly based on changes in prices/incomes (inflation rate) or a special law that provides for a higher adjustment.
- Benefits are granted 14 times per year as long as qualifying conditions persist; benefit payments are suspended if the beneficiary leaves Austria for a period exceeding 60 days.
- Benefits are subject to income tax (as far as above the income tax limit).
Legal Basis: General Social Security Act – Fourth Part, Section V (Allgemeines Sozialversicherungsgesetz – Vierter Teil, V. Abschnitt); Commercial Social Security Act – Second Part, Section III, Subsection 3 (Gewerbliches Sozialversicherungsgesetz – Zweiter Teil, Abschnitt III, 3. Unterabschnitt); Farmers' Social Security Act – Second Part, Section III, Subsection 3 (Bauern-Sozialversicherungsgesetz – Zweiter Teil, Abschnitt III, 3. Unterabschnitt); Pension Act (Pensionsgesetz 1965); Supplementary Allowances Regulation (Ergänzungszulagenverordnung 2021); Income Tax Act (Einkommensteuergesetz 1988).