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Jan 2, 2026

Tighter rules for combining unemployment benefits and side jobs take effect in Austria

Tighter rules for combining unemployment benefits and side jobs take effect in Austria
An amendment submitted by the governing coalition and expected to sail through parliament before the Christmas recess has come into force on 1 January 2026, restricting when job-seekers may hold marginal (‘geringfügig’) jobs while drawing Arbeitslosengeld or Notstandshilfe. Under the new regime, only two categories of benefit recipients may earn up to the marginal-employment ceiling for up to 26 weeks:
• long-term unemployed who have received benefits for at least 365 consecutive days; and
• individuals returning from at least one year of sickness, rehabilitation or retraining support.

Crucially for global mobility, the law also covers non-EU nationals with the right to work, including dependants on Red-White-Red Card plus permits who may claim benefits at the end of an assignment. Those outside the two privileged groups are now barred from side jobs while on benefits, forcing them to choose between keeping a marginal role and receiving state support.

In practice, foreign workers finishing a local contract – for example at the end of a plant-construction project – often register with the Public Employment Service (AMS) while they look for the next posting. Previously they could maintain a few consultant hours with the same employer under a mini-job. That pathway has narrowed, prompting companies to revisit off-boarding strategies and consider severance packages that bridge the income gap.

Tighter rules for combining unemployment benefits and side jobs take effect in Austria


For employers and expatriates navigating these changes, VisaHQ can simplify the immigration side of the equation. Its Austria-dedicated portal (https://www.visahq.com/austria/) provides step-by-step assistance with Red-White-Red Card applications, extensions and dependent permits, ensuring that visa status remains secure while HR teams restructure contracts or arrange departures.

Corporate tax and immigration advisers stress that any breach of the new rule can trigger repayment claims and jeopardise future benefit entitlements. HR teams should brief outgoing staff in advance and, where appropriate, convert marginal contracts into fully insured part-time roles.

The AMS plans to publish detailed guidance in February; until then, regional offices may interpret edge cases differently. Mobility managers should therefore track case law and seek written rulings where assignments end during the transition period.
VisaHQ's expert visas and immigration team helps individuals and companies navigate global travel, work, and residency requirements. We handle document preparation, application filings, government agencies coordination, every aspect necessary to ensure fast, compliant, and stress-free approvals.
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