Partial retirement allowance

Partial retirement allowance supports companies throughout Austria in retaining employees during their final working years and gradually accompanying them into retirement. Employers receive a reimbursement of up to 90% of the additional expenses incurred through a contractually agreed wage compensation (up to the maximum contribution basis) and the payment of social security contributions based on the previous salary. The prerequisite is a reduction of working hours by 40 – 60% for employees who have reached the qualifying age for partial retirement and can demonstrate a minimum period of employment. Both continuous models and block-time models are possible, with the funding rate being gradually adjusted for the latter. On request, a transitional pension secures 100% compensation, while from 2029 no expense reimbursement will be granted for block-time models. The funding volume is unlimited, the project duration is up to 60 months, and payments are made quarterly.

Applications can be submitted at any time and are open without limitation. Only expenses for wage compensation and the associated social security contributions are eligible for funding. For submission, the completed partial retirement allowance application form, a copy of the contractual partial retirement agreement, and confirmation from the pension insurance provider must be provided. With this funding, the AMS promotes the sustainable employment of older workers (especially 50+) and relieves companies during the transition to retirement. Further details on eligibility criteria and procedures are available at AMS regional offices and on the official AMS website.