It’ll soon be that time of the year again: corporate provision companies are sending their annual account information out to millions of Austrian households. Employers pay an amount of 1.53% of your gross salary every month into a corporate provision company (Betriebliche Vorsorgekasse) for all employment relationships that started since 1 January 2003, which forms a severance fund. As of 30 September 2024, there were over 11 million severance fund entitlements, (including people with multiple entitlements), that stand on average at approximately € 1,860.
A fundamental principle behind the “Abfertigung neu” (new severance scheme), in contrast to the previous scheme, is the “rucksack principle”, whereby contributions from a previous job are “taken with you” and can then be claimed in one go. There are precise rules and time frames for pay-outs, as well as for combining multiple entitlements held at difficult corporate provision companies into a single one, to obtain a clearer overview and avoid unnecessary paperwork. The current edition of “Let’s talk about money”, the FMA’s monthly publication for consumers is dedicated to this issue.
This edition and previous editions of “Let’s talk about money” can be found on the FMA website.
Current information about corporate provision companies (in German only) can be found here.
Journalists may address further enquiries to:
Boris Gröndahl (FMA Media Spokesperson)
Telephone: +43 (1) 249 59-6010
Mobile: +43 676 8824 9995
E-Mail: [email protected]