AMS to repay €135 million after contribution errors

Austria’s Public Employment Service (AMS) will repay more than 100,000 people a total of €135 million after wrongly calculated unemployment insurance contributions were withheld from low-income earners, ORF reported. The number of people affected in Carinthia is still being determined, but the AMS says payments will be made automatically.

The AMS in Carinthia said repayments would cover contributions withheld from people on low incomes through January 2024. No application is required. The payments follow a ruling by Austria’s Administrative Court, which found that contributions had been withheld from people who were not required to pay them.

The case was brought by a low-income woman who had three per cent deducted from her contribution despite not being liable to pay. The court said the law should have stated more clearly who was required to contribute.

Carinthian AMS head Peter Wedenig said the service would review cases automatically. A three-year limitation period applies, so periods outside that window will not qualify for repayment.

A jobless person whose previous gross monthly income was €2,000 could receive €28.50 for each eligible month. The AMS is still checking how many people in Carinthia are affected.