"Risk of Misincentives": Court of Auditors Criticising the Insolvency Compensation Fund
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The Court of Auditors warns against falling reserves and possible misincentives to the insolvency compensation fund. At the latest in 2028, higher employer contributions are expected to become necessary. However, opinions differ widely on the right path. AUSTRIA. The insolvency compensation fund (IEF) secures open claims of employees when a company becomes insolvent. In 2024, 33,221 people submitted an application for the first time. A total of …
Court of Auditors criticises Insolvency Fee Funds: As the system is designed, there is a risk of misincentives in some areas – an increase is required.
Graf: "The Insolvency Fee Fund needs to be reformed and financed sustainably with more accuracy and without any additional burdens on the companies." The report published today by the Court of Auditors on the Insolvency Fee Fund (IEF) clearly shows where action needs to be taken. In particular, the misincentives shown, possibilities for maximizing entitlements and structural weaknesses must be addressed quickly and consistently: "We have to star…
WIEN. The Insolvency Compensation Fund (IEF) threatens, as reported, to assume the money. According to forecasts, EUR 2027 160 million is missing. The Court of Auditors calls for an increase in the contribution rate by the employees.
The Insolvency Compensation Fund (IEF) is currently in the headlines because of a financing gap. The vehicle serves to satisfy employees' claims when an employer registers insolvency. The Court of Auditors (RH) published a report on the insolvency compensation system on Friday. "However, as the system is designed, there is a risk of misincentives in some respects," says the RH. In addition, it will need 2027/28 increases in the contribution rate.
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