The family allowance is a significant financial support for families in Austria. Around two million children benefit monthly from the state benefit, which will be increased by 4.6 percent in 2025.
Social and family benefits will increase by 4.6 percent in 2025. This corresponds to the average inflation from August 2023 to July 2024. Affected by this automatic inflation adjustment are the family allowance, the child tax credit and the multiple child supplement, as well as the child care allowance and the family time bonus.
Also adjusted will be sickness, rehabilitation and reintegration money, retraining money, study aid and student aid. The automatic adjustment will take place for the third time in a row in 2025.
Family Allowance Increases by 4.6 Percent in 2025
From January 1, 2025, the family allowance will increase by 4.6 percent. Per child, there will be up to 3,255 euros in the coming year, depending on the age of the child:
- Ab Geburt: von 132,30 auf 138,40 Euro
- Ab 3 Jahren: von 141,50 auf 148,00 Euro
- Ab 10 Jahren: von 164,20 auf 171,80 Euro
- Ab 19 Jahren: von 191,60 auf 200,40 Euro
In addition, the child tax credit, which is transferred together with the family allowance, will be increased to 70.90 euros.
Social Assistance Also Increases in 2025
The guideline rates for social assistance will also be increased by 4.6 percent. For single individuals and single parents, the amount of social assistance will increase from a maximum of 1,156 to 1,209 Euros net. For couples, the maximum amount will increase from around 1,618 to 1,692 Euros net. These amounts are granted twelve times a year.
A single parent with two children, who works part-time and receives social assistance, will benefit from the increase in social and family benefits next year by around 1,100 Euros, according to the Ministry of Social Affairs.
Earnings limit for students will be automatically increased
For the first time, the earnings limit for students will be automatically adjusted to inflation at the beginning of the year. They can earn up to 17,212 Euros per year in the future, without losing their entitlement to family allowance (2024: 16,455 Euros).
Single earners and single parents with children up to 18 years old, who only have a low income, will receive a supplement to the child tax credit from 2025 - namely 60 Euros per month per child. The cash benefit is a continuation of the support benefit from the package of measures against child poverty, this will be adjusted annually for inflation like the other benefits from the year 2026.
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