Statutory schemes of social security (Directive 79/7)

• Author: Thomasberger, Martina
• Pages: 41-43

41

7 Statutory schemes of social security (Directive 79/7)

7.1 General (legal) context

7.1.1 Surveys and reports on the practical difficulties linked to statutory schemes of social

security (Directive 79/7)

The persistent gender pay gap in Austria and widespread p art-time work by women

contribute to a signi ficant gender pension gap. On average, stat utory pensions received

by women are between 40 % and 50 % lower than those received by men. Both the pay

gap and the pension gap are significantly smaller for public servants.112 Statutory pensions

and pensions for public servants are calculated on the basis of either lifelong work earnings

or on an average of the best years of income in combination with the overall duration of

income above the social security threshold without any gender-specific rules. The

differences in pension amounts largely result from lower wages, from longer breaks in

employment, e.g. for childcare or for care of elderly relatives, and from the significantly

higher rate of female part-time work.

7.1.2 Other relevant issues

An important factor that contributes to the gender pension gap is the lower retirement age

of female employe es in the private sector (see also Section 7.5) which results in shorter

contribution periods and consequently in lower pensions. The lower pension age of women

also contributes to a greater impact of age discrimination on women in the labour market.

7.1.3 Overview of national Acts

Austria’s social security system is separated into statutory systems that cover health

insurance, old age pensions, occupational accidents and health risks, and disability

benefits according to the activity status of the insured person.

Employees and unemployed persons fall un der the scope of the General Social Security

Act (Allgemeines Sozialversicherung sgesetz, ASVG), which also covers mandatory health

insurance for pensioners.

Statutory social security for business persons and self-employed persons i s regulated in

the Trade and Industrial Social Security Act (Gewerbliches Sozialversicherungsgesetz,

GSVG) and for farmers in the Famers’ Social Security Act

(Bauernsozialversicherungsgesetz, BSVG).

Statutory health insurance for federal and provincial public servants is regulated by

specialised legislation (Beamten-Kranken- und Unfallversicherun gsgesetz, B-KUVG).

Employees have mandatory unemployment insurance under the Unemployment Insurance

Act (Arbeitslosenversicherungsgesetz, AlVG), which also offers an option for self-employed

persons.

All social security systems are contribution based with monthly contributions paid by both

employers and employees or by self-employed persons based on legally mandated

percentages of annual taxable earnings.

The personal scope of Article 2 is completely covered b y national legislation.

112 Official pension statistics published by Statistik Austria,

https://www.statistik.at/web_de/statistiken/menschen_und_gesellschaft/soziales/gender-

statistik/pensionen/index.html; see also European Commission (2013), The gender gap in pensions in the

EU, Luxembourg, p. 79, available at: http://ec.europa.eu/justice/gender-

equality/files/documents/130530_pensions_en.pdf.