European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case AT-2020-16/474 Updated – measures in Austria

Company subsidy for fixed costs including entrepreneur's wage

Fixkostenzuschuss

Country Austria , applies nationwide
Time period Temporary, 15 April 2020 – 31 December 2020
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Bernadette Allinger (Forba) and Eurofound
Case created 10 April 2020 (updated 12 May 2020)

Background information

For companies affected by business closures, a €15 billion COVID-19 crisis fund ('Nothilfefonds') is available, which consists of several measures (see other cases in Austria on bank guarantees, state support for tourism), among them the subsidy for fixed costs. To cover fixed costs, non-repayable subsidies are granted to companies that suffer substantial sales losses of at least 40% due to the consequences of the corona crisis.

Eligible are those companies that fully meet the following conditions:

  • Companies that have their management or a permanent establishment in Austria;
  • Companies that have to bear fixed costs from their operating activities in Austria;
  • Companies that were healthy before the Corona crisis;
  • Companies which, in the course of the Corona crisis, have suffered a loss of turnover of at least 40%;
  • Enterprises which take all reasonable measures to achieve sales which help to reduce fixed costs and maintain jobs in Austria.

Content of measure

The following fixed costs of the company are eligible:

  • Rent of business premises
  • Insurance premiums
  • Interest expenses
  • Licence costs
  • Payments for electricity, gas and telecommunications
  • Other contractual payment obligations
  • Entrepreneur's salary up to a maximum of €2,000 per month (analogous to the regulations from the hardship fund)
  • Loss of value of perishable/seasonal goods, provided that these lose at least 50% of their value during the corona measures

The fixed cost subsidy is staggered and depends on the company's loss of sales:

  • loss of 40 to 60%: 25% compensation of fixed costs
  • loss of 60 to 80%: 50% compensation of fixed costs
  • loss of 80 to 100%: 75% compensation of fixed costs

The fixed-cost subsidy does not have to be reimbursed - provided that all the provisions of the guidelines are complied with. The subsidy is limited to a maximum of €90 million per company.

Updates

The following updates to this measure have been made after it came into effect.

13 May 2020

On May 13, the new Corona Aid Fund guidelines for fixed-cost grants were published in the form of a regulation by the Austrian Ministry of Finance. Further improvements were announced on May 21, 2020. The novelties include:

  • Payment of an advance (first tranche) of up to 50%
  • Fixed-cost subsidy is granted from an amount of €500 upwards
  • Payments from the Hardship Fund are no longer counted.
  • Assertion of reasonable tax consultant, auditor and accountant costs up to €500 for applications with a grant amount below €12,000
  • Companies that were 'companies in difficulty' under EU state aid law on December 31, 2019 can apply for a grant of up to €200,000 under the de minimis state aid scheme, provided that no insolvency proceedings have been opened or the conditions for this have been met

The observation period stated in the 1st application cannot be changed afterwards (2nd and 3rd installment).

Use of measure

Measure has not yet been implemented at the time of writing (start: 15 April 2020).

Target groups

Workers Businesses Citizens
Self-employed
Solo-self-employed
One person or microenterprises
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement Consulted
Form Not applicable Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Only employers' organisations
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Employer organisation was consulted and is involved in the implementation.

Views and reactions

The Austrian Chamber of Economics section 'Young economy' highlighted that the reduction of the minimum threshold of the grant from €2,000 to €500, together with the fact that it can be obtained in addition to any payments from the hardship fund, are an important improvement in supporting solo-self-employed, micro and small enterprises.

Sources

Citation

Eurofound (2020), Company subsidy for fixed costs including entrepreneur's wage, case AT-2020-16/474 (measures in Austria), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.