Background information

In November and December 2020, the federal government implemented further lock-downs, in order to reduce the dynamics of the COVID-19 infection process.

On 3 November, a so-called "lockdown light" was implemented, which essentially regulates closures of restaurants and hotels (with take-away and business overnight stays allowed), as well as fitness centres, leisure facilities and the like. This was in place until 16 November (and again between 7 and 25 December) and was followed by a "strict" lock-down from 17 November to 6 December and 26 December 2020 to 17 January 2021, which regulated additional closures (e.g. retail, personal services such as hairdressing, cosmetic studios, but also museums or libraries). In order to support the Austrian economy and all those business affected by the closures, the federal government provides a lockdown sales compensation as a further aid measure as part of the federal COVID-19 aid fund.

Content of measure

Companies that are directly affected by the imposed restrictions are eligible to the sales compensation. For different sectors (according to the NACE classification) and periods, different replacement ratios apply, so that a so-called "November sales compensation" and "December sales compensation can be differentiated:

• Companies that were directly affected by official closures in the month of November ('light' lockdown from 3 November, 'hard' lockdown from 17 November to 6 December), that is companies whose industry was affected by the ordinance according to specified NACE classes, including gastronomy and hotels, as well as personal (body related) services such as hairdressers receive a flat rate of up to 80% of the turnover of November 2019 (up to a maximum of €800,000). Any other subsidies received from the hardship fund or the fixed cost subsidy do not reduce the compensation, short-time work is also not affected. Sales which are generated through takeaway foods or overnight stays of business travellers are also taken into account, i.e. they do not reduce the subsidy. Retail companies (excluding food and drug stores or pharmacies) which were affected by the measures from 17 November onwards receive a compensation of 20%, 40% or 60% of their sales from November 2019, depending on the perishability and seasonality of the goods, the sales/earnings ratio and the probability of subsequent purchases.
• For the month of December, a turnover compensation (up to €800,000) is granted to companies which were concerned by the imposed restrictions between 7 and 31 December 2020 or between 26 and 31 December 2020. The amount of the subsidy depends on the turnover in December 2019. Directly affected companies (sectors like in November) receive 50% of the loss in turnover, retail companies 12.5%, 25% or 37.5%.

Use of measure

As of 18 December 2020, 65,499 applicants received turnover compensation in the amount of €1.422 billion. The state paid €2.9 billion overall for applications in 2020 and €495 million in 2021.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	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	Unknown	Unknown
Form	Not applicable	Not applicable

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

• Unknown
• Main level of involvement: N/A

Involvement

Social partner involvement is unknown.

Views and reactions

Organised business (especially the sectoral associations concerned by business closures) appreciates the measure.

Sectors and occupations

This case is not occupation-specific.

Sources

• 06 November 2020: 80 percent sales subsidy implemented (news.wko.at)
• 18 December 2020: Great demand for lockdown compensation (www.cofag.at)
• 30 December 2020: Turnover compensation (www.umsatzersatz.at)
• 16 February 2021: Revenue replacement II (www.umsatzersatz.at)
• 22 February 2023: Förderungsbericht 2020 (www.bmf.gv.at)
• 22 February 2023: Förderungsbericht 2021 (www.bmf.gv.at)