In light of demographic developments and the rising retirement age, the Chamber of Labour (AK) and the Austrian Trade Union Federation (ÖGB) are calling for a package of measures to ensure people over 60 remain employed longer. A central element is a bonus/malus system that would reward companies for employing older workers and penalize those that do not. Criticism came from the ÖVP, the Chamber of Commerce, and NEOS. The Greens welcomed the proposal.

“Thirty percent of medium and large companies with at least 20 employees — that’s 7,400 businesses — do not employ a single older person, neither man nor woman over 60,” said Wolfgang Panhölzl, head of the social insurance department at the Vienna Chamber of Labour, at a press conference on Friday. According to AK and ÖGB, the proportion of 60- to 64-year-olds in the total workforce currently stands at just around five percent — with major differences between sectors and companies. “The challenge is to bring 100,000 workers in the 60–64 age group — which makes up about 700,000 people in the population — into employment over the next few years,” Panhölzl said.

While in sectors like construction or hospitality hundreds of businesses employ no one over 60, there are also companies that hire an above-average number of older workers. This imbalance, according to Panhölzl, shows that structural measures are needed to better utilize existing potential.

Average retirement age rising

Since 2000, the average retirement age has risen from 58.5 to 62.4 years for men, and from 56.8 to 60.4 years for women. In 2024, only 22.8 percent of women aged 60 to 64 were employed (76,000 out of 340,000), and 45.6 percent of men (around 150,000 out of 330,000), according to the Chamber of Labour. The government program aims for over 100,000 additional workers in this age group by 2030, which would double the employment rate of older workers — but that goal remains far off.

The planned equalization of the retirement age between men and women means women will have to work longer in the future. For this, age-appropriate workplaces are needed, emphasized ÖGB federal managing director Helene Schuberth. In many sectors, there are hardly any options to switch from heavy to lighter tasks.

Targeted incentives instead of general contribution relief

In addition to the bonus/malus system, AK and ÖGB are demanding transparent monitoring of older worker quotas, targeted funding instead of blanket contribution relief for companies, and legally anchored measures to prevent work-related illnesses. Companies that employ older people should benefit financially — those that don’t should pay.

They are also calling for improved rehabilitation and prevention services, enforceable company agreements for age-appropriate work, health promotion measures, binding limits on lifting heavy loads, and more training for unemployed people.

Greens supportive, harsh criticism from ÖVP and NEOS

Support for the AK/ÖGB initiative came from the opposition Green Party. Their spokesperson for labor and social affairs, Markus Koza, referred to a recent motion in the National Council to develop a bonus-malus system for employing older workers. Unfortunately, he said, it was rejected by the governing parties.

Representatives of the coalition parties NEOS and ÖVP criticized the proposal from the labor representatives, who are considered close to the Social Democrats. Jochen Danninger (ÖVP), Secretary General of the Austrian Economic Chamber, pointed out that the government program already includes support for healthy and longer working lives. “There’s no mention of a bonus-malus system.” He also sees increased bureaucracy for businesses in this “ideologically motivated punishment model.” “Such a bureaucratic system is not only unnecessary but harmful.” To support older unemployed people, he suggests expanding AMS tools like the integration subsidy.

Johannes Gasser, NEOS spokesperson for labor and social affairs, said: “It’s the wrong approach to create new penalties for businesses in an already challenging economic environment.” What’s needed, he said, are “incentives for both sides.”

Criticism from the business sector

Just the day before, UNIQA CEO Andreas Brandstetter had called on social partners and political parties to take the issue of longer working lives seriously. He stressed the urgent need to go beyond old habits and do things differently. An automatic adjustment to increasing life expectancy, like in Denmark, would be appropriate. “Pension costs weigh heavily on this country.” The facts are overwhelming, and businesses must also be ready to do their part so that people can stay healthy and work longer.