Vienna Becomes First Federal State to Abolish Increased Training Allowance

On June 30, 2025, Vienna will officially eliminate the increased training allowance as part of its welfare system, becoming the first federal state in Austria to implement this change. This decision aligns with the city's long-standing advocacy for a uniform national regulation of minimum security measures, which aims to improve integration into the labor market and address child poverty.

The decision to discontinue the increased training allowance was made following evaluations by both the federal government and the Vienna city government regarding the effectiveness and reliability of minimum security provisions. The allowance, introduced by the previous ÖVP-Green coalition government, was intended to incentivize individuals receiving minimum security to participate in training programs offered by the Public Employment Service (AMS). However, the city of Vienna has expressed skepticism regarding its actual impact on labor market integration.

Social Affairs Councilor Peter Hacker noted that the allowance was initially proposed without adequate review or consultation, which hindered any assessment of its potential benefits. The city welcomed the federal government's decision to abolish this measure, acknowledging that its effectiveness was dubious.

Financially, the removal of the increased training allowance is projected to save Vienna approximately 20 million euros annually. The city incurred costs of 9.7 million euros from November 2024 until June 2025 due to payments related to this allowance. The new resolution will be discussed in the city's committee for social affairs, health, and sports on June 18, 2025, followed by a formal vote in the state parliament on June 26, 2025.

The increased training allowance was designed to motivate individuals receiving minimum security to engage in AMS training, with the stipulation that these funds would not be deducted from their minimum security payments. However, no significant improvement in labor market integration was observed, prompting the city's decision to rescind the allowance.

As Vienna prepares to implement this change, it reflects a broader commitment to reform social support systems in a manner that prioritizes effectiveness and accountability in public spending. The forthcoming adjustments are expected to pave the way for more targeted approaches to social welfare that directly address the pressing issues of poverty and unemployment.