Business Federation Expects 800 Million Euro Relief for Companies in 2028

Although the gross relief volume amounts to around 2 billion euros, as Graf further explained, the net result is a relief of 800 million euros for 2028, with this figure expected to rise in subsequent years. Offsetting measures include, among others, a bank levy of 300 million euros as well as the temporary restriction of the profit exemption allowance in the amount of 200 million euros.

Gross and Net Relief in Detail

The gradual increase in corporate income tax, which is intended to contribute to offsetting the costs, according to the ÖVP only affects companies with profits exceeding one million euros. For smaller businesses, this burden therefore does not apply. At the same time, the previous contribution exemption for employees over 60 will be eliminated, meaning that the FLAF contribution will be collected uniformly for all employee groups from 2028.

According to Business Federation calculations, a company with 20 employees can save around 7,600 euros per year. For a business with 100 employees, the figure already reaches 38,000 euros. Savings increase disproportionately with company size and total payroll.

Impact on Individual Company Sizes

Business Federation President Barbara Eibinger-Miedl spoke in this context of significant relief for the economy. She referred to a study by the economic research institute EcoAustria, according to which a reduction in non-wage labor costs by one percentage point could create up to 12,000 new jobs. This model calculation supports the Business Federation's argument for the reduction.

Eibinger-Miedl also emphasized that she did not believe the contribution for employees aged 60 and over would run counter to the government's goal of increasing employment among older workers. This assessment had previously been criticized by the Greens. The elimination of the contribution exemption for those over 60 was discussed controversially in the political debate.

Debate About Older Workers

The reduction in non-wage labor costs is part of a larger package with which the federal government aims to relieve companies while simultaneously consolidating the budget. The offsetting is carried out through several pillars, including the bank levy, the restriction of the profit exemption allowance, and the increase in corporate income tax for large companies.

The Business Federation sees the package of measures as an important impulse for Austria as a business location. In addition to the FLAF reduction and the Aktivpension, further reform steps are being called for to strengthen the competitiveness of domestic companies in international comparison.

The impact on the labor market could be significant according to the EcoAustria model calculation. Up to 12,000 additional jobs are possible through the reduction in non-wage labor costs, according to the study. The actual effects, however, depend on economic developments and the response of companies.