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Austria – Controversial adjustment of the family allowance for Austrian employees/nationals with children living in another EU or EEA country or in Switzerland, entered into force on 1 January 2019

05.02.19
1
Written by
Schima Mayer Starlinger, a modern, service-oriented law firm in Austria.

For children living in another EU or EEA country or in Switzerland, the amount of the family allowance and the child deduction has been adjusted to the price level of the country in which the child lives, using the Austrian benefit level as the reference value. For children living in countries with a lower cost of living, this may lead to a significant reduction.

The adjustment has been subject to criticism by several EU member states. The EU Commission is considering whether to open infringement proceedings about it against Austria.

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