#Model inshort shorts png full#

#Model inshort shorts png full#

Apprentices receive full compensation (100% net replacement rate).For previous gross monthly earnings of above €5,370, there is no public compensation.

For previous gross monthly earnings of above €2,686, the payment amounts to 80% of previous net earnings.For previous gross monthly earnings of up to €2,685, the payment amounts to 85% of previous net earnings.For previous gross monthly earnings of up to €1,700, the payment amounts to 90% of previous net earnings.In detail, the net replacement rates during short-time work are as follows: Depending on the former income level, the model grants income compensation of between 80% and 90% (including special remunerations). After these three months, it is possible to prolong short-time work for another three months if necessary. Employees only have to carry out on average 10% of their normal working time within a time period of three months and it is possible to block that working time, for example at the end of the period. It even includes the possibility of a temporary reduction to as few as zero hours. The short-time work model allows a reduction in working hours while maintaining the employment relationship and granting almost full wage compensation. Net replacement rates between 80% and 90% of previous income The budget for public income compensation was first limited to €400 million1 and has been raised €1 billion on 28 March,2 which is about 0.25% of Austrian GDP.įigure 1 Rise in unemployment after announcement of confinement measures To counter this rapid increase in unemployment, the Austrian social partners negotiated a new short-time work model which was introduced on March 20. Moreover, personnel leasing workers have seen a rise in unemployment by 39%. The most affected sectors were accommodation, where the number of unemployed persons climbed by 178% within two weeks, and construction (+64%). After the Austrian government introduced massive confinement measures on 16 March 2020, unemployment soared by roughly 180,000 individuals within two weeks, from a total of 400,000 unemployed at the end of February (see Figure 1). The current crisis and the measures to mitigate the pandemic, however, have hit labour markets notably harder than in the Great Recession. In 2009, roughly 1.2% of employees in Austria worked short-time, compared to almost 4% in Germany.

While there is ample empirical evidence that short-time work effectively reduced lay-offs during the Great Recession (Gehrke and Hochmuth 2017, 2020, Cahuc and Carcillo 2011, Boeri and Bruecker 2011, Mandl 2011), there was only a small share of employees that were affected by the policy in Austria. These measures aim at avoiding the social and monetary costs of unemployment, maintaining company-specific knowledge, and stabilizing consumer demand. The public sector then provides the remuneration for the reduced hours up to predefined thresholds. The idea is straightforward: in order to stabilise employment and income, companies in need should reduce working hours temporarily rather than dismissing their employees (Giupponi and Landais 2020). Like many other OECD countries, Austria had already introduced short-time work (STW) during the Great Recession of 2008 (Hijzen and Denn 2011). This policy is one of the key measures to mitigate the consequences of the Covid-19 economic crisis (Baldwin and Weder di Mauro 2020, Caldera et al. In order to tackle skyrocketing unemployment in Austria, social partners have developed a new model of subsidized short-time work that could become an international role model. While the countermeasures to reduce infections are largely undisputed among experts, the ways to deal with the economic crisis are very different across countries. The global spread of coronavirus has led to a shutdown of vital functions of the economy and a massive increase in unemployment. Like many other countries, Austria is currently facing unprecedented disruptions to everyday life.