At the centre of the legislation is the new Aktivpension, which would introduce a tax-free allowance of up to €1,250 per month, or €15,000 annually, for eligible workers from 2027.

Under the proposal, employees who have reached retirement age and continue working would no longer have to pay their own pension-insurance contributions. Self-employed workers would also benefit, although they would remain responsible for the notional employer share of those contributions.

Eligibility would generally require at least 40 insurance years before retirement. A transitional arrangement would apply to women, reflecting the gradual increase in Austria’s statutory retirement age. The scheme would cover people who postpone drawing their pension as well as pension recipients who continue working in either dependent employment or self-employment.

The government has presented the measure as a way to make later-life employment more attractive amid demographic changes and labour shortages. Austria’s Parliament and public broadcaster ORF have reported that the proposal is expected to take effect from January 2027 if approved.

Wednesday’s parliamentary agenda also includes changes to occupational pensions, including provisions concerning the investment of contributions under the country’s “Abfertigung Neu” severance-pay system.

Lawmakers are additionally expected to consider new rules governing family benefits for people displaced from Ukraine and for individuals with subsidiary protection. The proposed changes address eligibility for family allowance and childcare benefits, including the relationship between those payments and Austria’s basic welfare support system.

The parliamentary session is part of the first regular sitting of Austria’s 2026–27 legislative year, with several other social, economic and administrative measures also scheduled for discussion.