The Austrian Federal Economic Chamber (WKÖ) has criticised the timing of parliamentary approval for Austria's Aktivpension (Active Pension) legislation, arguing that an autumn vote would create challenges for employers ahead of its planned introduction on 1 January 2027.

Following the bill's formal introduction to parliament on 10 July, WKÖ president, Martha Schultz, welcomed the reforms but said it was disappointing that the National Council was not expected to approve the legislation until the autumn.

She said this is particularly late for the Aktivpension, which is due to take effect on 1 January 2027.

"This creates challenges for company payroll departments. Approval before the summer would have provided greater planning certainty," she stated.

The Aktivpension legislation forms part of the government's wider pension reform package announced in April, which also includes measures to strengthen Austria's occupational pension system.

Under the Aktivpension, people who continue working after reaching the statutory retirement age, as well as pensioners who work while receiving their pension, will be eligible for an annual tax exemption of €15,000 from 2027.

The measure will require individuals to have 40 years of pension insurance contributions, while women will require 34 contribution years when the scheme is introduced.

It will also remove the employee pension insurance contribution for workers who continue working beyond retirement age, with self-employed workers receiving equivalent relief.

"We have long advocated for people to work longer, and with the Aktivpension we have achieved an important milestone: thanks to the annual tax exemption of €15,000, there is now an effective incentive to remain professionally active for longer. This will become increasingly important given demographic developments," she said.

She said the reforms would encourage people to earn additional income during retirement and create incentives to postpone retirement, strengthening the "long-term stability of the pension system".

Schultz also highlighted as a success that the new rules will include self-employed workers.

"From the outset, it was clear to us that the Aktivpension should apply regardless of employment status. Whether employed or self-employed, anyone willing to continue working should benefit from the scheme," she said.

Schultz also welcomed measures aimed at strengthening Austria's second pillar, with employees set to receive the option to convert severance pay entitlements into pension savings.

"This benefits individuals while also helping to place the pension system on a broader and more sustainable footing," Schultz said.

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