AK against further reductions in so-called ancillary wage costs, because this endangers the social security of employees

Linz (OTS) – The reduction in so-called ancillary wage costs repeatedly demanded by entrepreneurs and their representatives is in reality a demand for cuts in benefits in the welfare state. Gradually reducing these by 2030 is a massive attack on the tried and tested Austrian social system. “The AK therefore gives a clear and definitive rejection of Chancellor Nehammer’s plans. Instead of the constant attack on social security, what is needed is the protection of benefits“, says AK President Andreas Stangl.

With such a massive reduction in social contributions, as Chancellor Nehammer wants, entrepreneurs will save money at the expense of employees. “Apparently, employers want to shirk their responsibility for solidarity-based financing of social security and the common goodAK President Stangl is annoyed. Because insurance in the event of illness, accident, unemployment and families is at risk. According to calculations by the AK Upper Austria, the Chancellor’s plans that have already been leaked would deprive social security of around six billion euros by 2030. This corresponds to the sum of the family allowance for three years.

Social security has already been cut massively in the past: the family burden equalization fund (FLAF) has already been cut from 4.5 to 3.9 percent. The accident insurance contribution was reduced from 1.4 to 1.1 percent, and the insolvency insurance surcharge was reduced from 0.7 to 0.1. Since 2016 alone, entrepreneurs have been given more than 7.3 billion euros. In addition, corporate tax was reduced and companies were given a tax gift worth millions.

The Upper Austrian Chamber of Labor demands:

• A clear commitment from the Federal Chancellor and business representatives to a social and health system financed by solidarity.
• Austria needs secure financing of the social system, for example in order to close the gaps in care in the health sector, to shorten the long waiting times for operations and to finally relieve the burden on health and nursing staff.
• Reversal of the reduction in the accident insurance contribution rate and the increase again to at least 1.4 percent.
• Instead of cuts, in view of the economic difficulties and the challenges ahead, more budget is needed for labor market policy.

Questions & Contact:

Chamber of Labor Upper Austria – Communication
Mag. Rainer Brunhofer
+43 (0)50 6906 2185
rainer.brunhofer@akooe.at
ooe.arbeiterkammer.at