Neue Regelungen für die Beschäftigung älterer Arbeitnehmer:innen

In dieser Folge des Arbeitsrecht-Podcasts diskutieren Isabel Firneis und Sarah Haubmann die wesentlichen Änderungen bei der Beschäftigung älterer Arbeitnehmer:innen in Österreich, die am 1. Januar 2026 in Kraft getreten sind. Diese Reformen zielen darauf ab, Arbeitnehmer:innen länger im Erwerbsleben zu halten, die finanzielle Belastung des Pensionssystems zu verringern und Kosten zu reduzieren sowie die Arbeitgeber:innen dabei zu unterstätzen, den Fachkräftemangel zu bewältigen. Die Folge konzentriert sich auf zwei zentrale Instrumente: das reformierte Modell der Altersteilzeit und die neu eingeführte Teilpension.

New rules for employing older employees

In this episode of our Arbeitsrecht podcast, Isabel Firneis and Sarah Haubmann discuss the major changes to the employment of older employees in Austria that took effect on 1 January 2026. These reforms are intended to keep employees in the workforce longer, reduce the financial burden on the pension system, save costs and support employers in managing skilled labour shortages. The episode focuses on two central instruments: the reformed system of the partial retirement model (“Altersteilzeit”) and the newly introduced partial pension (“Teilpension”).

New partial retirement model

Partial retirement continues to allow older employees to remain in the workforce while reducing their working hours. The new rules apply to so-called “continuous partial retirement arrangements” concluded after 31 December 2025. In addition, there is another model: the so‑called blocked partial‑retirement model, for which the current regulations generally continue to apply.

In general, partial retirement entails additional costs for the employer. Social security contributions must still be paid based on the original full‑time contribution base. Under the revised system, employers also remain responsible for so-called “wage compensation.. A significant change concerns the calculation of this wage compensation: overtime pay and overtime allowances are no longer included. This creates challenges for employees with all‑in contracts, where the allocation of overpayment to overtime and other benefits is often unclear.

Subsidies under the new model

Under the new model, employers may continue applying to the Public Employment Service (AMS) for reimbursement of part of their additional costs, but the reimbursement rate has been reduced from 90 (or in certain cases 100) to 80 percent for agreements commencing between 2026 and 2028. From 2029, the rate is currently intended to return to 90 percent.

The permitted duration of subsidised partial retirement will be gradually reduced. Agreements starting in 2026 may last up to 4.5 years, those beginning in 2027 up to 4 years and those starting in 2028 up to 3.5 years. From 2029 onwards, only a three‑year duration will be possible and only for employees within three years of meeting the requirements for corridor pension or statutory retirement age. Furthermore, eligibility conditions are tightening: the required period of employment subject to unemployment insurance will gradually rise from fifteen to seventeen years by 2029.

Additional employment

Another change affects secondary employment. From 1 January 2026, employees in partial retirement may no longer undertake additional employment for another employer, including marginal employment, unless they already carried out this activity during the year preceding the start of partial retirement. This ban on secondary employment also applies to ongoing partial retirement arrangements as well as to the blocked partial retirement model. Existing secondary employment that is no longer permissible must be terminated by 30 June 2026. In any case, it is advisable for employers to include certain provisions related to this matter in the partial‑retirement agreement.

Partial pension

The partial pension was introduced on 1 January 2026 as a new instrument intended to encourage employees who qualify for certain pensions to continue working while reducing their working hours. Instead of retiring fully, eligible employees may reduce their working time by between 25 and 75 percent and receive a partial pension alongside their part‑time salary. The intention is to allow older employees to remain employed longer while already drawing part of their pension, thereby accumulating further insurance periods for the portion of salary they still earn.

The amount of the partial pension depends on the extent of the reduction in working hours, the already accrued pension account and age‑related factors, such as deductions or supplements depending on the timing of the pension claim.

Implementation and challenges

In order to take partial pension, a written agreement between employer and employee is required. Under the partial pension model, employers do not pay wage compensation or fictitious social security contributions. They only pay for the hours actually worked, meaning an employee reducing their working time receives a correspondingly reduced salary without any supplement. In addition, to receive the partial pension, the employee must submit an application to the pension insurance institution, providing proof of the reduction in working hours.

In connection with partial pension agreements, several legal questions arise. For example, it must be considered that overtime and additional work are permitted only to a very limited extent. Excessive working hours can lead to the loss of the partial pension. Employees, therefore, have a right to reject overtime and additional work. This must be considered in particular for employees with high all‑in agreements, as the question arises whether a partial pension agreement is economically attractive or whether changes to the all-in remuneration agreement should be considered.