Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure AT-2020-16/789 – Updated – measures in Austria
Country | Austria , applies nationwide |
Time period | Temporary, 15 April 2020 – 31 December 2020 |
Context | COVID-19 |
Type | Legislations or other statutory regulations |
Category |
Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme |
Author | Bernadette Allinger (Forba) and Eurofound |
Measure added | 25 April 2020 (updated 19 June 2023) |
For companies affected by business closures, a €15 billion COVID-19 crisis fund ("Nothilfefonds") is available, which consists of several measures (see the cases 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 (see case AT-2020-16/474 ). As part of this package, also an entrepreneurs' salary can be claimed.
Eligible for the subsidy of fixed costs are those companies that fully meet the following conditions:
Among the different components of fixed costs which can be subsidised, an entrepreneur's salary is included. This is calculated on the basis of the last assessed previous year and amounts to a minimum of €666.67 and a maximum of €2,666.67 per month.
The following updates to this measure have been made after it came into effect.
18 December 2020 |
On 23 November 2020, the European Commission approved the extension of the fixed costs subsidy (phase II) after weeks of uncertainty. Companies may now receive a subsidy of up to €3 million to cover their fixed costs. For the time being, applications for up to €800,000 can be made. Similar to phase I, the entrepreneur's wage falls under the costs covered in the same amount as in phase I. |
16 June 2020 |
On their 2-day working meeting on 15 and 16 June 2020, after which further COVID-19 support measures worth €19 billion were announced, the extension of the company subsidy for fixed costs by six months was decided. Thus, the qualifying time for the measure (phase 2) is expected to be extended to March 2021 and the threshold for loss of sales is expected to be lowered from 40% to 30%. At the time of writing (9 July), no legal regulation has been published, thus, further specifications are yet unknown. |
At the beginning of December, over 45,000 applications for phase one were submitted for the total amount of €625 million. Thus far, over 39,000 have been approved and €380 million have thus far been paid (with an average of €9,742).
In the first week of applications for the second phase of the fixed costs subsidy, 812 applications were submitted with a volume of €9.8 million. Almost €10,000 paid on average per application.
Workers | Businesses | Citizens |
---|---|---|
Self-employed
|
SMEs
One person or microenterprises |
Does not apply to citizens |
Actors | Funding |
---|---|
National government
|
National funds
|
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:
The Federal Economic Chamber was consulted in the design of the measure.
Both sides of the social partners are supportive, as the subsidy also supports workers as employment may be retained.
Citation
Eurofound (2020), Entrepreneur's wage (part of the company subsidy for fixed costs), measure AT-2020-16/789 (measures in Austria), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/AT-2020-16_789.html
Share
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.
Article12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.
Article12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.
Article5 July 2022
This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.
ArticleDisclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.