Commission approves €60 million Austrian wage subsidy scheme to support seasonal businesses affected by the coronavirus pandemic

The European Commission has approved a €60 million Austrian wage subsidy scheme to support seasonal businesses affected by the coronavirus pandemic and the mandatory closure measures that the Austrian government imposed  between 22 November and 12 December 2021 (17 December 2021 in Upper Austria) to prevent the spread of the virus. The scheme was approved under the State aid Temporary Framework. Under the scheme, the public support will take the form of wage subsidies covering part of the wage costs for those employees that started the employment relationship between 3 November and 12 December 2021 (17 December for Upper Austria).

The measure aims to provide transitory support until the eligible companies will be able to apply for the short-time work program (called ‘Kurzarbeit'), covering the wage costs of workers that have been employed for at least one full calendar month of salary. The measure will help seasonal businesses to cover their wage costs, to resume their activities and to avoid lay-offs. The Commission found that the Austrian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the measure will assist companies that are particularly affected by the coronavirus outbreak and is aimed at avoiding layoffs; (ii) the monthly wage subsidies will not exceed 80% of the monthly gross salary of the benefitting personnel; and (iii) the aid will be granted no later than 30 June 2022.

The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measure under EU state aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case numbers SA.101086 in the state aid register on the Commission's competition website.

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