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Glossary

Minimum pension/ Compensatory allowance

A compensatory allowance is granted to persons who live in Austria and whose monthly income is below a certain limit. This limit is adjusted annually.

Minimum pension/ Compensatory allowance

Persons receiving a very small pension are entitled to a compensatory allowance from the state up to the amount of the minimum pension. A compensatory allowance is granted to persons living in Austria whose monthly income as a single person are below a certain, yearly adapted limit. The limit for spouses and partners living in a joint household contains a higher amount for the two of them. Since 2017 persons having acquired 360 months of contributions to the compulsory insurance based on gainful activity are entitled to a higher compensatory allowance which is also yearly adapted. The compensatory allowance is a welfare benefit by the state. All additional income/earnings are directly offset against the compensatory allowance as appropriate.

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