Employing People with Disabilities: What Companies Need to Know

Tax Benefits for Employers

Companies that employ a “registered disabled person” ("begünstigt behindert") may benefit from several exemptions from payroll-related taxes. However, official notification confirming that the person belongs to the group of registered disabled persons is required. A disability ID alone is not sufficient. If the official notification is not yet available, it can be requested from the Austrian Social Ministry Service (“Sozialministeriumservice”).

The following payroll-related employer charges do not apply to registered disabled employees:

• Employer contribution to the Family Burden Equalisation Fund (Dienstgeberbeitrag zum Familienlastenausgleichsfonds = DB)
• Surcharge on the employer contribution (Zuschlag zum Dienstgeberbeitrag = DZ)
• Municipal tax
• Vienna employer tax (Wiener Dienstgeberabgabe = "U-Bahn-Steuer")

As a result, ongoing personnel costs can be reduced noticeably.

Compensatory Levy („Ausgleichstaxe”)

Employers with at least 25 employees are required to employ one registered disabled person for every 25 employees. If this employment obligation is not met, a monthly compensatory levy is payable.

By hiring a registered disabled person, the compensatory levy no longer applies to the corresponding filled mandatory position. In 2026, the levy for companies with up to 99 employees is EUR 344 per month for each unfilled mandatory position.

The amount of the compensatory levy for 2027 had not yet been published by the Austrian Federal Ministry.

Particularly noteworthy: in certain cases, for example for blind persons with disabilities or young registered disabled persons, an individual is counted twice for the purpose of meeting the employment obligation. This can reduce the compensatory levy further.

Attractive Subsidies

1. AMS Integration Subsidy (“Eingliederungsbeihilfe des AMS“)

Under certain conditions, companies may receive an integration subsidy from the Austrian Public Employment Service (AMS) when hiring a person with a disability. It is particularly important that the application be submitted before the employment relationship begins.

Following an AMS integration subsidy, companies that are subject to the employment obligation may also apply for the inclusion subsidy. This subsidy amounts to 30 % of the monthly gross salary and can therefore cover a significant share of payroll-related employer costs in many cases.

2. Inclusion Subsidy and Inclusion Subsidy Plus (“Inklusionsförderung” and “InklusionsförderungPlus”)

Both the Inclusion Subsidy and Inclusion Subsidy Plus are generally granted by the Social Ministry Service (SMS) for a period of twelve months. To qualify, the monthly gross salary must exceed the applicable marginal earnings threshold. In addition, the AMS must first grant, or must already have granted, an integration subsidy for the employee.

The inclusion subsidy amounts to 30 % of the ongoing gross salary, excluding special payments. The subsidy is capped at EUR 1,000 per month.

Companies with fewer than 25 employees may claim Inclusion Subsidy Plus. It amounts to 37.5 % of the ongoing gross salary, excluding special payments, and is capped at EUR 1,250 per month.

Since 2020, Inclusion Subsidy Plus has always applied when women with disabilities are employed, irrespective of the size of the company.

3. Wage Subsidy for Disability-Related Reduced Performance (“Entgeltzuschuss bei behinderungsbedingter Minderleistung”)

Where disability results in a documented reduction in performance, a wage subsidy may be granted to compensate for the disability-related limitation.

Depending on the assessed extent of the reduction in performance, the subsidy may amount to up to 50 % of the assessment basis, but no more than three times the applicable compensatory levy (2026: EUR 1,032). The calculation is based on monthly gross remuneration excluding special payments, plus a flat-rate allowance for payroll-related employer costs of up to 50 %. Approval is granted for a maximum of two years at a time and may then be reassessed.

The employment relationship must, however, have existed for a specified period. The subsidy is granted upon application to the Social Ministry Service. It can be claimed either following an inclusion subsidy from the 19th month of employment onwards or, if no AMS integration subsidy or inclusion subsidy has previously been received, from the 13th month of employment.

4. Job Retention Subsidy (“Arbeitsplatzsicherungszuschuss”)

If the job of a person with a disability is at risk, a job retention subsidy may be granted.

The risk of the job may arise for economic reasons or from other circumstances and must be substantiated by the employer. Applications are also submitted through the Social Ministry Service. The subsidy is granted for a period of one year at a time and may be claimed for a maximum of three years.

The maximum subsidy here is also 50 % of the assessment basis, but no more than three times the applicable compensatory levy. The calculation is based on monthly gross remuneration excluding special payments, plus a flat-rate allowance for payroll-related employer costs of up to 50 %. The subsidy may also be granted for part-time employees.

5. Support for Training and Qualifications

Training and education costs may also be subsidised under certain conditions. Depending on the circumstances, funding is provided by the AMS or the Social Ministry Service.

This can generate significant cost savings, particularly when onboarding new employees or implementing professional development measures.

6. Free Advice for Companies

Companies do not have to navigate the path to inclusion alone. Various advisory services provide support with hiring people with disabilities and retaining them in employment over the long term.

The NEBA Business Service, an initiative of the Social Ministry Service, offers companies free advice tailored to their individual needs. Further support is available through services including workplace assistance, job coaching and integration counselling.

Special Protection Against Dismissal

In addition to the numerous subsidies, employers should also be aware of the applicable employment law framework. The Austrian Disabled Persons Employment Act (“Behinderteneinstellungsgesetz”) does not provide special protection against summary dismissal. Registered disabled employees generally benefit from special protection against ordinary termination from their fifth year of employment with the company, if evidence of their status was available when they joined. If registered disabled status is determined during the employment relationship, the special protection generally applies after six months of employment. Ordinary dismissal then requires the approval of the Disability Committee.

Approval is generally granted only where substantial grounds exist, for example if:

• the position is permanently eliminated, and no reasonable alternative employment is available;
• the employee is permanently unable to perform the contractually agreed duties and recovery of the ability to work cannot be expected;
• the employee has repeatedly and seriously breached their duties.
  
  

Other Protective Provisions for Registered Disabled Persons

In addition to special protection against ordinary dismissal, the following protective provisions should be observed:

• Protection of remuneration: Salary or wages may not be reduced because of the disability.
• Enhanced duty of care: Companies have an enhanced duty of care towards registered disabled persons. To the extent permitted by the specific workplace and working conditions, every possible consideration must be given to their state of health.
• Disability representative (“Behindertenvertrauensperson”): In businesses that permanently employ at least five registered disabled persons, a disability representative and a deputy must be elected.

Important: Depending on the sector, collective bargaining agreements often provide additional entitlements for registered disabled persons, such as additional leave, extended continued remuneration, more favourable dismissal rules, priority consideration for transfers or special company benefits.

Conclusion

Employing people with disabilities offers companies numerous advantages. In addition to tax benefits and attractive subsidies, employers benefit from a more diverse workforce and make an important contribution to an inclusive labour market.

At the same time, companies are advised to review potential subsidies before hiring, as some forms of support are subject to specific requirements.

Would you like to know which subsidies may be available to your company? Our team will be pleased to assist you in reviewing eligibility requirements and applying for available subsidies.