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Is Vienna paying out too much minimum income?

“It’s about justice”

The FPÖ’s answer is very clear. The Vienna regional party leader Dominik Nepp said in a press conference on Friday: “I have been in politics for years, but what has happened here has never happened before.” It is not about envy, but about justice. The family is getting more “without doing anything” than many people get for their full-time job, criticizes Nepp.

He announces a motion of no confidence against mayor Michael Ludwig and Social City Councillor Peter Hacker (both SPÖ) and a complaint against Hacker for abuse of office. After all, the Vienna SPÖ had promoted “internal migration” to the capital by increasing social benefits. In short: According to Nepp, Vienna has higher social benefits than other countries, which is why many people come to the city “who don’t want to work”.

At 10.8 percent, the unemployment rate in Vienna is twice as high as in the rest of Austria. The proportion of residents receiving minimum social security is also by far the highest in Vienna at 7 percent. In the other federal states it is below one percent or just above. The main reason for this – in addition to the high number of long-term unemployed in Vienna – is the high proportion of migrants.

Upper Austria and Vienna in comparison

In fact, the federal capital may be more financially attractive for people who cannot or do not want to work than other federal states.

In 2019, the turquoise-blue government failed in its attempt to introduce a nationwide uniform model at the Constitutional Court. This is why the states can decide on the surcharges themselves. The biggest difference emerged between Vienna and Upper Austria.

Upper Austria has a degressive model: if there is one minor in the family, the amount is 288.96 euros, if there are two minors, 231.17 euros each, and if there are three, 173.38 euros each. If there are five or more children, only 138.70 euros are paid out per child. In Vienna, however, city councilor Peter Hacker proclaims: “Every child is worth the same.” Therefore, regardless of family size, each child receives 312.08 euros.

In addition, the rental allowance is paid separately in Vienna and can amount to up to 30 percent of the minimum income. In Upper Austria, the housing allowance is credited towards social assistance.

For example, a Syrian family with seven children in Vienna (including rent assistance) earns 4,600 euros, while in Upper Austria the same family would only earn 2,590 euros.

There is another difference: beneficiaries of subsidiary protection (unlike asylum, not a permanent residence permit) are only entitled to basic benefits. In Vienna – and also in Tyrol – the amount is increased to the level of minimum benefits. That makes a difference of several hundred euros.

Minimum income: 500 euros per person

In the office of City Councillor Hacker, the case of the large Syrian family is put into perspective: in Vienna there are only 120 families of this size, 107 of which are only “top-up recipients”. These are employed people whose income is too low and is therefore topped up to the level of minimum social security. Only 13 families are so-called “full-time recipients”.

Im S1-Journal, Hacker calculates: 4,600 euros for nine people equals 500 euros per person. Everyone should look inside themselves and ask themselves whether they could get by on 500 euros a month, he said.

The Freedom Party’s complaint is being viewed with equanimity – nothing criminal has happened, according to Hacker’s office. The amount paid out is not a “revelation” but the current legal situation in Vienna. And there are no plans to change anything. “These sums are available to every family that needs them – including Austrian families.”

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