The big picture

Salaries, cables, new deposit: What 2025 will bring us

Fees, but also relief - the coming year is full of innovations.

(Bild: Krone KREATIV/stock.adobe.com)

Another turbulent year in Austria is over. What will the next one bring? Will it be better? Politics, the economy, education, elections, salaries, pensions, health, social issues, cars and housing - the year 2025 has plenty of changes in store. You can find an overview here. Cheers, New Year!

Income increases of around four percent: wages, salaries and pensions will be adjusted or increased. As always, the benchmark is last year's inflation - and so the increase in income in most major sectors is around four percent.

• The new collective agreement for the public sector: 3.5 percent increase (with social grading, valid from January 1).

• Employees in the retail sector will receive a 3.3 percent pay rise, and in 2026 there will be a 0.5 percent increase above rolling inflation.

• Since December, around 55,000 employees in the railroad sector have already received an impressive 4.1 percent increase in collective and actual wages.

• Pensions will rise by 4.6 percent in 2025. (Those with a pension higher than the ASVG maximum pension will receive a fixed amount of just under 279 euros).

Further adjustment of the retirement age for women: Women born between July 1 and December 31, 1964 can retire at the age of 61. By 2033, the retirement age for women - like that of men - will be 65.

Social and family benefits increase by 4.6 percent: Social and family benefits will increase by 4.6 percent. In addition to the family allowance, the child deduction and the multiple-child supplement are also affected, as are the childcare allowance and the family time bonus. Sickness, rehabilitation and reintegration allowances, retraining allowances, study grants and school grants will also be adjusted. These automatic inflation adjustments will take place for the third time in a row in 2025.

Care allowance will be increased: The care allowance will be routinely increased - by the so-called adjustment factor, as it has been since 2020. For 2024, this means an increase of 4.6 percent, i.e. in line with pensions and other family and social benefits. The bonus for family caregivers will also be adjusted, amounting to 130.80 euros per month from 2025 instead of the previous 125 euros.

Hundreds of euros more for energy: The new year will bring higher gas and electricity bills. This is mainly due to higher grid costs and charges, which were reduced to a minimum during the energy crisis - and which are now back in full force. The expiry of the electricity price cap is also likely to lead to higher costs. In total, household energy bills will rise by several hundred euros a year, depending on the federal state and energy consumption.

Municipalities raise fees: Municipal services will become several euros more expensive every month - for example in Vienna. The federal capital will increase the tariffs for water supply, waste water, waste disposal and parking tickets in accordance with the Valorization Act. There will be similar increases in the provincial capitals.

Wave of inflation for motorists: In 2024, fuel was on average two to four cents cheaper per liter than in 2023. But that's where the relief ends. From January, the cost of refueling will rise, and insurance tax and standard consumption tax will also be increased. At least the mileage allowance will be increased. And: the vignette will become more expensive (it is also available in digital form). The price of the annual vignette, which remained stable last year for a change, is now rising to 103.80 euros - meaning that the annual vignette will cost over 100 euros for the first time.

More mileage allowance and tax relief: While possible new taxes - above all on wealth and inheritance - are keeping the coalition negotiators from the ÖVP, SPÖ and NEOS busy and causing disagreement, some tax changes from the previous turquoise-green federal government are already fixed: the small business limit will be increased to 55,000 euros, for example; the mileage allowance will be increased to 50 cents per kilometer from the beginning of the year.

The first four rate limits will also be adjusted from January 1st:

• The marginal tax rate for the first 13,308 euros will then be zero percent,
• 20 percent for income above this (up to 21,617 euros),
• up to 35,836 euros 30 percent,
• up to 69,166 euros 40 percent.
• Up to 103,072 euros, the marginal tax rate is 48 percent,
• 50 percent above that.

Are "sin taxes" coming? IHS Director Holger Bonin explained on "ZiB 2" on Monday evening: Provided nothing "unforeseen" happens, there are signs that things are "on the up". Consumption in Austria is slowly starting to pick up again; there are also "brighter signs" worldwide. There is a chance of slight economic growth. The state generally needs to look at the expenditure side. In addition to a reform of educational leave, for example, an increase in the so-called sin taxes on alcohol, tobacco or sugar would probably be necessary, says Bonin. Although people's incomes are growing, "they don't really trust the roast" - so a lot of savings are still being made.

Deposit on cans and plastic bottles is coming: Austria will have a one-way deposit system from 2025. Anyone who buys plastic bottles or aluminum cans will pay a 25 cent deposit. If you return the empty bottles and cans, you will also get your money back. 

Heating replacement and PV will continue to be subsidized: The current subsidies for the replacement of heating systems and the thermal refurbishment of residential buildings as well as the VAT exemption for photovoltaic systems for private individuals will continue in the coming year. Premiums for the purchase of private e-vehicles and charging infrastructure are expected to be available until May 31, 2025. You can find more information on the subsidies here.

Home office becomes "teleworking": From January 1, 2025, new regulations will apply to working outside the company. Working from home will then legally fall under the broader term "teleworking". The change will make it possible for employees to perform their work not only within their own four walls, but also with family members - or in coffee shops, for example.

An end to cable clutter at last? The coming year will also bring some changes to the design of cell phones and charging cables - finally, many will think. On June 20, an EU-wide regulation comes into force that aims to make smartphones more durable and easier to repair. This New Year's Eve should also put an end to cable clutter: From now on, all smartphones, digital cameras, headphones, tablets or video game consoles should have standardized charging ports.

Real-time transfers are coming across Europe: EU member states have agreed that instant transfers - bank transfers that take less than ten seconds - will become standard in future. This will take effect in 2025. From January 9, banks across Europe will be obliged to receive real-time transfers in euros, and from October 9, institutions will also have to enable their customers to send such transfers. From then on, no additional fees may be charged for real-time transfers.

Building society premium stable at 1.5 percent: The premiums for building society savings and state-subsidized retirement provision ("Zukunftsvorsorge") will remain stable in the coming year. The home loan and savings premium will remain at 1.5 percent in 2025, while the premium for future provisions will remain at 4.25 percent.

Real estate loans will become more affordable again: For prospective house builders who have found it difficult to obtain financing due to strict lending criteria and high interest rates, the situation is set to ease in the coming year. This is because some strict lending rules will expire in mid-2025. Interest rates are also likely to fall further, meaning that loans should generally become more affordable again.

New rules for the seizure of data carriers: The most prominent changes in the area of justice concern the seizure of cell phones and laptops. Such items must be seized in future, but unlike previously (in most cases, not in cases of imminent danger), this requires a court order. There are also stricter requirements for the evaluation of data. Apart from this, the rights of both victims and defendants will be strengthened in criminal proceedings.

First Matura with a new "final paper": For the first time, students graduating from an AHS in 2025 will be able to submit the result of a research, creative or artistic process as a "final paper" instead of a pre-scientific paper. At vocational secondary schools, however, the previous final papers will be completely abolished - instead, there will be new reflection tools in subject lessons. From the fall, new protective measures are also to protect young teachers from burnout. And: primary school teachers are to receive more practical training again from fall 2025.

Additional income limit for students automatically higher: For the first time, the additional income limit for students will be adjusted to inflation at the beginning of the year - in future, they will be able to earn 17,212 euros per year without losing their entitlement to family allowance.

More accessibility: From the middle of the year, better accessibility for people with disabilities must be ensured for various electronic articles and offers. From the beginning of the year, larger companies will be obliged to install an "accessibility officer". The first pilot projects on "wages instead of pocket money" are also to be launched.

New bishops among Catholics and Lutherans: The Archbishop of Vienna, Cardinal Christoph Schönborn, may finally retire at the beginning of the year, but a successor is not yet known. The Evangelical Lutheran Bishop Michael Chalupka is also retiring. His successor will be elected.

Intensive election year follows "super election year": After the "super election year" of 2024 with several regional elections, the EU elections and the National Council elections, 2025 will be another intensive year with many ballots:

• The mayoral election in Linz kicks off on January 12.
• January will also see the provincial elections in Burgenland (19 January) and the municipal elections in Lower Austria (26 January).
• The municipal elections in Vorarlberg (March 16) and Styria (March 23) follow in March.
• The highlight is the Vienna election in the fall. No date has yet been set. The last election in the Austrian capital was held on October 11, 2020.
• Elections will also be held in the Austrian Students' Union. This date is also yet to be set, but is expected to be between mid-May and early June.

Change of power in the USA: The foreign policy year 2025 will bring a number of milestone anniversaries, but is otherwise difficult to predict. One reason for this is the change of power in the USA, where Donald Trump will take up his second term as president on 20 January. Trump also wants to turn international relations upside down. It is eagerly awaited what accents he will set in the Ukraine war. Germany will also have a new government after early elections at the end of February.

30 years of EU accession: Austria is celebrating several anniversaries in 2025. On January 1, we celebrate 30 years of EU accession. May 5 marks the 80th anniversary of the liberation of the Mauthausen concentration camp, and three days later the official end of the war on European soil is commemorated. The Austrian State Treaty, which was signed on May 15, 1955, also celebrates its 70th anniversary in 2025.

The Austrian Armed Forces celebrate their 70th anniversary: For our army, the coming year will be dominated by "Mission Forward" and the further implementation of the reconstruction plan. For example, the successor to the Saab 105 is to be finalized, as is the signing of the contract for the procurement of the medium missile defence system for the European Sky Shield air defence system (ESSI). In addition, the Austrian Armed Forces will be celebrating their 70th anniversary in 2025.

Sources: Kronen Zeitung, APA, ORF, ministries