Austria curbs side-income for long-term unemployed from 2026
Austria is tightening rules on marginal work for long-term unemployed residents from 2026, a policy shift that alters supplementary income options for foreign workers and affects the non-wage labour costs funding the system.
From 2026, Austria will no longer allow most people claiming long-term unemployment benefits to take on marginal part-time work without losing their state support. Previously, recipients could earn up to €551.10 per month alongside their payments. Under the new rules, this exemption will only apply to individuals who already held a marginal job for at least 26 weeks alongside a fully insured main job before becoming unemployed.
The change affects recipients of Notstandshilfe, Austria's emergency assistance for the long-term unemployed. This benefit is granted after standard unemployment insurance expires, which typically lasts 20 weeks but can extend to 52 weeks depending on age and employment history. Notstandshilfe generally pays 95 percent of the previous benefit. However, for 2026, payments exceeding a new reference rate of €1,308.39 per month will be reduced to 92 percent of the basic unemployment benefit.
Notstandshilfe is funded through Lohnnebenkosten, or non-wage labour costs. By restricting the ability to top up state benefits with side income, the government is tightening the conditions of a system that directly impacts these labour costs.
Claimants must remain fit for work, available to the employment service, and accept suitable work offered to them. The benefit is paid in fixed 52-week increments and requires renewal applications, though it can technically continue for an unlimited period.
These welfare rules apply broadly to foreign nationals working in Austria. Eligibility for both standard benefits and emergency assistance is based on compulsory insurance through employment, not Austrian citizenship.
EU citizens and third-country nationals with work rights qualify under the same criteria as citizens, though specific thresholds vary. A first-time claim requires 52 weeks of employment in the past two years, while subsequent claims require 28 weeks in the past year. Those aged 25 and under need only 26 weeks.
Self-employed individuals can also qualify for these benefits. However, they must have previously opted into Austria's voluntary unemployment insurance scheme.
The intersection of welfare and immigration law means the new income restrictions carry uneven risks. While EU citizens retain broad free movement rights, third-country nationals on work-tied permits like the Red-White-Red card can see their status threatened by job loss. Limiting their ability to earn supplementary income while on emergency assistance could further complicate their efforts to remain in the country.
