Schumann Warns of Insolvency Fund Crisis

Labor Minister Korinna Schumann seeks to secure the Insolvency Remuneration Fund as reserves are projected to drop sharply by 2026.

SPÖ Labor Minister Korinna Schumann is addressing a funding crisis for the Insolvency Remuneration Fund (IEF). While the fund held 385 million euros in 2024, reserves are projected to drop to 30 million by 2026, with 350 million in expenditures by 2027.

The IEF, funded by employer contributions, saw its rate halved to 0.1 percent in 2022. Although ÖVP, Neos, and employer groups oppose a return to 0.2 percent, Schumann is legally obligated to ensure funding and will issue a decree if negotiations fail.

Additionally, Austria missed the June 7 deadline for the EU Pay Transparency Directive. Schumann has submitted a draft law to the ÖVP and Neos to implement the directive, which aims to improve gender wage equity without affecting collective agreements.


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