From pocket money to fair wages: An important step towards more inclusion

Fair pay for people with disabilities benefits everyone

People with disabilities who do work in day care and occupational therapy facilities only receive a small allowance as remuneration, not a fair wage, even though in many cases the work they do is very similar work to that of people in regular jobs.

Against this backdrop, the Austrian Ministry of Social Affairs raised a fundamental question: What financial changes would result from a system change, switching from pocket money to fair wages? To answer this question, the ministry asked WU Vienna’s Competence Center for Nonprofit Organizations and Social Entrepreneurship to take a closer look at the financial effects that would result from paying true wages that are subject to social security law. During two years’ work, the NPO Competence Center analyzed large amounts of data and calculated the relevant scenarios.

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The result? Regular wages result in noticeably higher incomes for the people affected – even though this means that they are no longer eligible to receive certain types of social security benefits and financial support. At the same time, the federal government and social security funds also benefit from the switch to regular wages because it creates cost savings and flows of money back to the public coffers.

The findings of the research project show that fair wages for people with disabilities are a win-win model – for the people affected, for the economy, and for the stakeholders involved in providing the social services. Fair working conditions increase the employment rate, and they create long-term cost savings for the government thanks to higher public revenues and reduced spending on social security benefits.

Based on these research findings, the Ministry of Social Affairs presented its Inclusive Work Guidelines (Richtlinie Inklusive Arbeit) in July 2024. This program is intended to make it easier for people with disabilities to transition into the regular labor market. In addition to fair pay, this also means full social security coverage, including pension entitlements.

Preliminary results from pilot projects are already showing some positive developments. People with disabilities are becoming more financially independent and more self-confident, and their social integration is improving as well.

All this shows that an important step has been made to increase the primary labor market participation of people with disabilities.

Pressekonferenz zum Thema "Lohn statt Taschengeld"

“For many years, we’ve been calling for collective bargaining agreement wages and full social security coverage for people with disabilities who work in day care or occupational therapy centers. Thanks to this study, we now finally have a clear picture of the effects that regular wages and social security coverage have on the relevant financial flows.”

Klaus Widl, President of the Austrian Disability Council

Key Facts

  • Project duration/start: 2021–2023

  • Competence Center for Nonprofit Organizations and Social Entrepreneurship

  • Further WU staff and partners involved: Selma Sprajcer, Christian Grünhaus

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