Adjustment factor 2027 remains at 1.0: Regulation suspends valorization

The Federal Minister for Labour, Social Affairs, Health, Care and Consumer Protection has set the adjustment factor for the year 2027 at 1.0. The ordinance was promulgated on October 22, 2026, in the Federal Law Gazette for the Republic of Austria, Part II, under the official reference BGBl. II No. 308/2026. Through this mechanism, the linked amounts will not be increased in the coming year.

The legal basis is § 108 Para. 5 in conjunction with § 108f of the General Social Insurance Act (ASVG), BGBl. No. 189/1955. The ordinance is issued “with the consent of the Federal Government” and explicitly “taking into account the reference value according to § 108f Para. 2 and 3 ASVG”. The text of the ordinance does not state the specific numerical value of the reference value; only the factor 1.0 is established. The announcement is signed with the name “Schumann”.

The adjustment factor is the central parameter of the annual valorization in social security. A value of 1.0 mathematically means multiplication by one, thus a “zero round” (no increase) for all amounts linked to this factor.

No increase in the linked amounts

• Adjustment factor for the calendar year 2027: 1.0
• Legal basis: § 108 Para. 5 in conjunction with § 108f ASVG
• Promulgation: Federal Law Gazette Part II, BGBl. II No. 308/2026, issued on October 22, 2026
• Participation: Consent of the Federal Government

Affected, among other things, is the contribution amount to the Labour Market Reserve according to § 15 of the Labour Market Service Act (AMSG). The Budget Accompanying Act 2027-2028, BGBl. I No. 62/2026, provides for 230 million euros for 2027 and 215 million euros each for 2028 and 2029; from 2030 onwards, this amount is to be multiplied annually by the adjustment factor of the respective calendar year. With a factor of 1.0, it remains nominally unchanged.

The revaluation of the contribution bases follows a separate parameter. According to § 108 Para. 3 ASVG in the version of the Budget Accompanying Act 2027-2028, the maximum contribution base for 2027 amounts to 231 euros per calendar day, multiplied by the revaluation figure for 2027 plus 5 euros. The revaluation figure is not the subject of Ordinance BGBl. II No. 308/2026.

Pensions will still be increased in 2027 – by federal law

The ordinance regarding the factor 1.0 does not automatically mean a zero round for pensioners. The Budget Accompanying Act 2027-2028 contains its own “Pension Adjustment 2027” in § 427 ASVG, which is explicitly to be applied “deviating from § 50 Para. 1 first sentence as well as Para. 2 and 2a” and “not with the adjustment factor”:

• Total pension income up to 6,930 euros per month: increase by 2.95 percent
• Total pension income over 6,930 euros per month: increase by 204.44 euros
• Equalization supplement rates including rate increase for children: multiplication by 1.033
• Bonus according to § 156a ASVG: multiplication by 1.0295

Parallel regulations are contained in the Budget Accompanying Act for the Commercial Social Insurance Act (GSVG) in § 427 and for the Farmers’ Social Insurance Act (BSVG) in § 421, each with the same amounts of 6,930 euros, 2.95 percent, and 204.44 euros. For survivor’s pensions for which no payout amount results as of December 31, 2026, a multiplication by the factor 1.0295 is provided.

In the previous year, the indexation was still positive

The fact that the factor is above one in other years is shown by the Student Grant Indexation Ordinance 2026 (BGBl. II No. 305/2026) of October 16, 2026. It reset the amounts of the Student Grant Act 1983 with effect from September 1, 2026, “based on the adjustment factor of § 108f applicable for this year,” for example:

• § 4 para. 4: from 6,821.00 to 7,005.00 euros
• § 9 para. 1a: from 1,845.00 to 1,895.00 euros
• § 12 para. 6: from 10,230.00 to 10,506.00 euros

With the factor 1.0, the automatic indexation mechanism of the social security system remains ineffective for 2027; increases result only from the special rules explicitly stipulated in the Budget Accompanying Act 2027-2028. For insured persons and pensioners, this means: the 2.95 percent pension increase is an individual decision by the legislator, not the result of the annual adjustment – and all amounts that are linked solely to the adjustment factor remain nominally unchanged in 2027.

Source: Federal Law Gazette for the Republic of Austria, Part II, No. 308 of October 22, 2026, Ordinance: Determination of the adjustment factor for the year 2027 (official reference: BGBl. II No. 308/2026).