Vienna, April 15, 2026 The government has agreed to introduce tax incentives for seniors who continue working beyond retirement age, including a €15,000 annual tax-free allowance for self-employed individuals and waived employee social insurance contributions.
## Tax Relief and Social Insurance Changes Starting next year, self-employed seniors will benefit from a €15,000 tax-free allowance annually, a measure aimed at encouraging continued workforce participation. Additionally, employee contributions to social insurance will be eliminated, though employers will still be required to pay their share. The changes are expected to alleviate financial burdens on older workers who previously faced high taxation and pension contributions while earning supplemental income.
Social Minister Korinna Schumann emphasized the voluntary nature of the policy, stating in German: *"man ermögliche ohne Zwang, dass am Ende des Monats deutlich mehr Geld lukriert werden könne"* ("it enables people, without coercion, to earn significantly more money by the end of the month"). The government estimates that 150,000 individuals will immediately benefit from the reforms, with that number projected to grow in coming years.
## Political Reactions and Future Adjustments VP club chairman August Wöginger highlighted the perceived unfairness of the previous system, where seniors working post-retirement faced dual financial pressures. He cited an example: a retiree receiving a €2,000 pension who earns an additional €2,000 could save €7,000 annually under the new rules.
NEOS club chairman Yannick Shetty welcomed the changes but criticized past policies for penalizing those who wished to keep working. Shetty confirmed his party would continue advocating for an increase in the statutory retirement age, which he predicted would be addressed in the next legislative period.
By 2033, the pension age will be equalized for men and women, removing gender-based disparities in retirement requirements. The reforms aim to balance fiscal sustainability with support for an aging population seeking flexible work options.