The family allowance will be increased in 2025.
©APA/HELMUT FOHRINGER
Family allowance is significant financial support for families in Austria. Around two million children benefit every month from the state benefit, which will be increased by 4.6 percent in 2025.
Social and family benefits will increase by 4.6 percent in 2025. This corresponds to the average inflation from August 2023 to July 2024. Affected by this automatic inflation adjustment are the family allowance, the child tax credit and the additional child allowance as well as the childcare allowance and family time bonus.
Sickness benefits, rehabilitation and reintegration benefits, retraining benefits, study allowances and study grants will also be adjusted. The automatic adjustment will take place for the third time in a row in 2025.
Family allowances will increase by 4.6 percent in 2025
From January 1, 2025, family allowances will increase by 4.6 percent. Depending on the child's age, there will be up to 3,255 euros per child in the coming year:
- From birth: from 132.30 to 138.40 euros
- From 3 years: from 141.50 to 148.00 euros
- From 10 years: from 164.20 to 171.80 euros
- From 19 years: from 191.60 to 200.40 euros
In addition, the child tax credit, which is transferred together with the family allowance, will be increased to 70.90 euros.
Social assistance will also increase in 2025
The standard rates for social assistance will also be increased by 4.6 percent. For single people and single parents, the amount of social assistance increases from a maximum of 1,156 to 1,209 euros net. For couples, the maximum amount increases from around 1,618 to 1,692 euros net. These amounts are granted twelve times a year.
According to the Ministry of Social Affairs, a single parent with two children who works part-time and receives social assistance will benefit from an increase in social and family benefits by around 1,100 euros next year.
The earning limit for students is automatically increased
For the first time, the earning limit for students is automatically adjusted to inflation at the beginning of the year. In the future, you can earn up to 17,212 euros per year without losing your right to family allowance (2024: 16,455 euros).
Single earners and single parents with children up to 18 years of age who only have a low income will receive a supplement to the child tax credit from 2025 – namely 60 euros per month per child. The cash benefit represents a continuation of the support from the package of measures against child poverty; like the other benefits, this will be adjusted annually to inflation from 2026.
This article has been automatically translated, you can read the original article here.
