NATIONAL LABOUR MARKET POLICIES
Basic Information Reports
2.5.1.1.Unemployment benefit
(Arbeitslosengeld)
The qualifying conditions for receipt of unemployment benefit are:
- Unemployment; this applies where the claimant's income falls below the non-significant income level (e.g. in 1998 less than ATS 3,830 monthly for dependent employment); persons who fulfil the conditions for entitlement to benefits from old-age pension insurance or are already in receipt of such benefits are not considered unemployed.
- Availability for placement; this means that the claimant must be in a position to and must take up employment, provided he/she is fit for and willing to work and is unemployed. Persons who are in a position to take up employment are defined as those who
1. are ready to take up and engage in the type of employment normally offered on the labour market, which is reasonable, subject to compulsory insurance and meets the relevant legal and collectively agreed regulations; and
2. are authorised to reside in Austria for the purpose of engaging in dependent employment.
- Willingness to work is defined as the readiness to take up reasonable employment, to participate in a labour market policy scheme (e.g. training) or to seek work independently.
Employment is considered reasonable if it is fairly paid (observance of collectively agreed or legal stipulations), does not exceed the physical abilities of the unemployed person and does not entail a danger to his/her health or moral standards. Placement in a job which does not correspond to the beneficiary's preceding employment is permissible, provided that it does not significantly impede a return to his/her previous occupation.
Should the beneficiary refuse a job or obstruct his/her placement or the success of a training scheme, his/her unemployment benefit is suspended; this has the additional consequence of a reduction in the duration of benefit (of at least six weeks, and of eight weeks for repeated offences).
- Fitness for work; unemployed persons who are fit for work are neither invalids nor occupational invalids as defined under pension law.
- Minimum period of employment with compulsory contributions to unemployment insurance: 52 weeks' employment within the 104 weeks prior to assertion of the first claim; the required minimum duration of employment is reduced to 26 weeks within one year in the event of repeated claims and for young people (aged under 25 years).
In calculating the duration of previous employment, certain special periods are included (e.g. substitute military service, military service, employment abroad - provided certain treaties or EU regulations, etc. apply); the framework period may be extended in certain circumstances.
The rate of unemployment benefit is calculated on the basis of the previous earned income (basic rate). Family allowances granted to persons who are supported by the unemployed beneficiary are also taken into consideration:
The basic rate is derived from the gross wage earned during the preceding calendar year (including pro rata special payments) and is usually equal to 57% of the previous net income.
Unemployment benefit for older unemployed persons (men aged over 50, women aged over 45) is calculated on the basis of the most favourable classification and not on the basis of previous earnings, the purpose being to enable such persons to enter employment which pays less than their previous wage without suffering disadvantages if they draw benefits at a later date.
There is an upper limit on the benefit rate which is linked to the maximum basis of assessment for contributions. The basic monthly rate amounts to ATS 13,962 given a previous gross monthly wage of upwards of ATS 37,779 (including special payments) (1998; calculated on the basis of a daily rate of ATS 465.40 for 30 days).
A monthly family supplement of ATS 651 (30 days) is granted for both children and partners, provided that the partner's net income does not exceed ATS 14,000 monthly. Any surplus income is deducted from the basis of assessment for the family supplement.
Unemployment benefit has a minimum duration of 20 weeks; the duration is
- 30 weeks in the event of three years' employment within the preceding 260 weeks;
- 39 weeks in the event of six years' employment within the preceding 520 weeks, if the unemployed person is at least 40 years of age;
- 52 weeks in the event of nine years' employment within 15 years, if the unemployed person is at least 50 years of age.
Under certain circumstances the duration of benefit may be extended by a maximum of four years for members of employment foundations.
Unemployment benefit is payable from the date of application; persons who voluntarily quit their employment, who are dismissed through their own fault or who are entitled to dismissal compensation, compensation for leave due or severance pay usually receive their first payment four weeks after the date of application (no reduction of duration).
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