The Austrian parliament on Thursday unanimously approved an increase in the additional income limit for students.

The threshold will rise from €15,000 to €16,455, allowing students to earn more without losing their entitlement to family allowance.

The measure, which is retroactively effective from January 1, also includes a provision that exceeding the income limit could result in a reduction in student grants. Starting in 2025, the additional income limit will be adjusted annually in line with inflation, ensuring a consistent framework for future increases.

This decision marks a significant step in providing financial support to students as they pursue their education.

Earlier today, Austrian Chancellor Karl Nehammer announced updates to the country’s tax categories.

Read more: Austria Updates Tax Categories to Benefit Taxpayers