NATIONAL LABOUR MARKET POLICIES
Basic Information Reports
2.5.3.1.Parental allowance
Parental allowance is payable as an income compensation for the duration of the period in which a parent cares for his/her young child if this entails interrupting his/her employment or a reduction in his/her normal working hours.
As for unemployment benefit, applicants must have been in contributory employment for at least one year; shorter periods of employment suffice after the first claim (26 weeks) and for persons aged under 25 (20 weeks). Unemployed parents are also eligible for parental allowance.
Fathers who reside in the same domicile as their child are only eligible for parental allowance if they fulfil the qualifying conditions and the mother of the child forfeits her entitlement.
Parental leave may also be shared between parents; in this case each parent may avail of leave only once for a minimum duration of 3 months.
The monthly parental allowance is equal to at least ATS 5,565 (basis of assessment: 30 days), regardless of the previous gross wage earned. Single parents and parents whose partners have a low income are entitled to a monthly bonus of ATS 2,500. However, the bonus must be refunded by the parent who has not drawn parental allowance or the parent with the low income if his/her income later exceeds a specified limit.
Instead of taking parental leave and thereby forfeiting income from employment, parents may opt for continued employment on a part-time basis, drawing a reduced parental allowance at the same time. Reduced parental allowance amounts to 40% of the rate due when working hours are reduced to at least 60% of statutory normal weekly working time. Parents have no legal entitlement to part-time employment - unlike parental leave, it is subject to the agreement of the employer.
Parental allowance is payable until the child has reached 18 months of age or until it is three years old in the case of part-time employment. However, if the parents share the parental leave, i.e. the other parent also claims leave or works part time, the parental allowance is payable until the child is aged two, or aged four in the case of part-time employment.
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