Vienna seeks repayment after AMS underpaid benefits

Vienna plans to seek reimbursement from the federal government after Austria’s Public Employment Service (AMS) underpaid about 250,000 people by a total of roughly 135 million euros, ORF reported. The city says its social assistance payments made up some of the shortfall.

The underpayments followed a ruling by the Administrative Court. A low-income woman challenged the calculation of her unemployment benefit because the AMS had deducted a three per cent unemployment insurance contribution from her former salary, even though she was not required to pay it.

The ruling set a precedent, requiring the AMS to make payments to those affected. In many cases, social assistance from Vienna had compensated for the lower benefits.

Vienna’s Freedom Party (FPÖ) estimates that the shortfalls caused the city around 330 million euros in losses over the past 18 years. The office of Social Affairs Councillor Peter Hacker said the city had been in contact with the AMS and the ministry for about two weeks and expected a prompt solution.

The city said several federal states were affected and that the money was due to the states. It could not yet say whether Vienna had suffered a financial loss or how much it might amount to, unlike the FPÖ estimate.