Read news from:
Austria
SHARE
COPY LINK
For members

COST OF LIVING

What is the new cost of living ‘credit’ for self-employed people in Austria?

An "extraordinary credit contribution" will be applied to the next social insurance payment for eligible self-employed people in Austria. Here's what you need to know.

Published: 3 November 2022 10:05 CET
What is the new cost of living 'credit' for self-employed people in Austria?
Some eligible self-employed people will receive a cost-of-living "credit" in their next social insurance bill. (Photo by Karolina Grabowska)

As part of the Austrian federal government’s ongoing package of measures to cushion the impacts of inflation, some self-employed people will receive a credit in their next social insurance bill.

The aim of the scheme is to help low income self-employed people with the rising cost of living, and those eligible will receive between €100 and €500.

The one-time credit will be applied by SVS (the social insurance organisation for self-employed in Austria) to the next advance payments in Q4, which will be distributed in November.

READ ALSO: EXPLAINED: How and when to change your Austrian e-card for a photocard

How much credit an eligible person receives will depend on their income and how much they pay to SVS.

If the SVS contribution base is €566, a credit of €160 will be applied to the Q4 payment. For contributions between €1,200 and €2,100, the credit will be €500. 

The credit amount is then reduced on a sliding scale to €100 for contributions of more than €2,100 and up to €2,900.

Those that pay more than €2,900 or less than €566 in social insurance payments are not eligible for the credit.

More information about the scheme and how much credit self-employed people can expect to receive can be found at svs.at.

READ MORE: EXPLAINED: How freelancers in Austria can pay four times less in social insurance

Eligible self-employed people for the scheme

Two types of self-employed people in Austria are eligible for the upcoming social insurance credit:

  • Those insured under the Commercial Social Insurance Act (GSVG) as of 31st August 2022. This includes traders, business partners, new self-employed and freelancers.
  • People insured under the Farmer’s Social Insurance Act (BSVG) as of 31st May 2022. This group includes operators of agricultural and forestry businesses and their family members who work full time in the business.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

COST OF LIVING

Austria to hike amount to be paid out for 2024 ‘Klimabonus’ payment

Austrian authorities will soon start sending out the so-called Klimabonus payment, and it will be a higher amount than last year.

Published: 15 May 2024 14:57 CEST
Austria to hike amount to be paid out for 2024 'Klimabonus' payment

The Klimabonus or climate bonus is a part of Austria’s eco-social tax reform, a set of measures to promote climate protection.

One such action includes a tax on CO2 emissions, which increases fuel prices and affects Austrian drivers. The annual Klimabonus payment aims to offset this expense. 

The payment of this year’s climate bonus will see an increase due to the higher CO2 pricing, and so will range between €145 and €290. Last year, the bonuses varied from €110 to €220. The new figures were announced by the Austrian government after the meeting of the Council of Ministers on Wednesday, May 15th, reported ORF.

Payments will be made after the summer

You will receive the bonus if you have had your main residence in Austria registered for more than six months.

As during the precious years, the payment will be made after the summer – by bank transfers and postal deliveries via RSa letter. If you received the payment to your bank account last years, you should update your account details to finanzonline.at to ensure that everything is in order.

READ ALSO: Vienna reveals new plan for how to move away from gas heating

How much will you get?

The idea is that people who live in cities where they can rely on eco-friendly public transportation will receive a lower portion of the bonus. Those who instead have limited access to public transportation and need to pay higher costs, such as for using their car for travelling, will receive a larger portion of the bonus.

The government has created four different categories which decide how much residents in different locations will receive.

  • Category 1: Urban centres with very good infrastructure and excellent public transport facilities, such as Vienna. In Category 1 regions, there is no additional regional compensation, so the payment remains at the base amount (€145 per person).
  • Category 2: Urban centres with good infrastructure and solid public transport facilities, including cities like Graz, Salzburg, Klagenfurt, or St. Pölten. In Category 2 regions, the regional compensation is 33 percent of the base amount (€195 per person).
  • Category 3: Urban centres and surrounding areas with basic public transport facilities or good basic public transport options. Examples of category three regions are Groß-Enzersdorf, Wolfsberg, or Mittersill. In Category 3 regions, the regional compensation is 66 percent of the base amount (€245 per person).
  • Category 4: Rural communities and communities with only basic public transport facilities. Examples of category four regions include Mariazell, Werfen, and Sölden. In Category 4 regions, the regional compensation is 100 percent of the base amount (€290 per person).

READ MORE: Austria climate activist aims to take fight to Brussels

SHOW COMMENTS