Amounts are fixed: Pensions will increase by this much in 2026

Spread the love

Read Time:1 Minute, 57 Second

Austria: Pension increase in 2026: Small and medium-sized pensions will increase by 2.7 percent, with a cap on pensions above €2,500. The government presents a compromise.

There has been intense debate in recent days about pension increases for 2026. Now the package has been finalized, and the minister responsible, Korinna Schumann (SP), plans to present it on Friday morning at the Ministry of Social Affairs.

During the ORF summer interview on September 1, the chancellor announced his intention to increase pensions below the inflation rate (currently 2.7 percent) in light of the need for austerity measures. He aimed to inject €300 million into the cash-strapped state coffers. The Neos party took the same line.

The SPÖ, with its influential regional leaders, put up fierce resistance. Now it seems that the Reds in the coalition have reached a compromise for their important core constituency.

According to information published by “Heute,” small and medium-sized pensions up to a gross monthly amount of 2,500 euros will increase by the full 2.7 percent. However, there will be a cap on these €2,500 pensions—something that the ÖVP and Neos parties have vehemently pushed for. All pensions above this amount will receive a flat rate of €67.50 per month, which corresponds to 2.7 percent of €2,500. Calculated over the whole of 2026, this amounts to an increase of €945.

What does this mean in concrete terms? Seventy percent of statutory pensions will benefit from the full 2.7 percent increase. Here, the SPÖ was able to avert further savings at the last minute (pensioners had already had to accept the rise in health insurance contributions). However, if civil servants are included, one-third of seniors will receive an increase below the inflation rate—which was essential to the People’s Party in view of the long-term security of the pension system and in the interests of the national budget.

“Preventing the worst”—this was the motto with which the senior citizens’ representatives entered the critical phase of negotiations on the pension increase for 2026, as reported in detail. For Birgit Gerstorfer (SPÖ-affiliated Pensioners’ Association) and Ingrid Korosec (ÖVP Seniors’ Association), “the worst” would be an agreement below the legally stipulated 2.7 percent for all.