Family burden equalization fund
The Family Relief Fund (FLAF) of the Republic of Austria is one of the Ministry of Finance managed funds for family policy . It was founded at the time of the sole government of the ÖVP by Federal Law Gazette No. 376/1967, which came into force on January 1, 1968, in order to partially compensate the families for the additional work caused by children. As a "three-generation contract", the FLAF, into which the employer pays 3.9% (until December 31, 2016: 4.5% or 2017: 4.1%) of the gross wage bill for each employee, is the counterpart to Pension insurance . The contribution rate has been reduced over time - in favor of other social benefits .
The FLAF's most important benefit is child benefit (child or family allowance ), which is paid to parents for each child up to the end of vocational training (up to a maximum of 26 years of age) and is slightly progressive for families with multiple children . Since the 1970s , other services have also been financed from the fund, which was partly controversial in partisan politics . a. free travel for schoolchildren and parts of the maternity or parental leave allowance . From a legal point of view, the fund is set up as a purpose-specific management in the federal budget , for which the finance minister is responsible.
The socio-economic goal of the FLAF is to balance the maintenance burdens and care services of those people who, as mothers and fathers, have to care for children. The primary redistribution function of load balancing is a horizontal one: the FLAF distributes between those who currently have childcare obligations and those who do not.
Since the 1980s, however, it has been shown that the type of budgeting also entails vertical redistribution. The FLAF supports the lower income brackets much more than the upper ones. The bottom quarter of the income recipients receives more than 3 times what they (indirectly) pays in. The top quarter, on the other hand, only receives half of the amount retained. The self-employed do not have to pay a contribution, but are nevertheless entitled to the benefits.
Individual evidence
- ↑ Employer contribution to the family burden compensation fund (DB) at wko.at