CMS NewsMonitor Employment | Episode 43
published 01.10.25
The previous model for educational leave and part-time education expired in spring 2025. Since 15 September 2025, a ministerial draft for new regulations has been available, which is to come into force on 1 January 2026. In view of the budgetary situation and increased costs, a new ‘further education allowance’ has been created: there will no longer be a legal entitlement to this in future. If certain income limits are exceeded, employers will also be required to contribute financially.
Overview
In future, a ‘further training allowance’ (formerly ‘further training grant’ or ‘part-time training grant’) can be granted for both educational leave and part-time education in accordance with
§ 37e AMSG. The budget for this further training allowance will be reduced to 150 million euros per year. This means that significantly less funding will be available than was previously the case.
There is no longer a legal entitlement to this further training allowance. An application for further training allowance can be submitted three months before the start of educational leave. The Labour Market Service (AMS) decides on the granting of the allowance on a case-by-case basis. In future, the AMS must check whether the further training measure makes sense in terms of labour market policy.
The specific requirements regarding the amount and duration of the further training allowance are to be laid down in an AMS guideline in the form of a tiered model. The AMS will be given considerable discretion in designing the guidelines – the exact details remain to be seen. All changes are to come into force on 1 January 2026.
Changes to labour law from 2026
It remains unchanged that educational leave can be agreed in accordance with Section 11 AVRAG without pay for a period of at least two months up to one year. Whereas previously only six months of continuous employment was sufficient for this, this period is to be increased to twelve months. A new educational leave can be agreed upon after four years have elapsed since the start of the last educational leave.
The agreement on educational leave or part-time education must include the level of education, the measure, the objective and, in the case of part-time work, the start, duration, extent and location of the part-time work – for better verifiability.
As there will be no legal entitlement to further training allowances in future, the validity of the agreement between employees and employers on educational leave will depend on whether it is approved. Employees must therefore inform their employer without delay of the (non-)approval, as the employment relationship will continue without educational leave if it is not approved.
New requirements for receiving further education allowances
In future, employees must have been employed for a continuous period of twelve months subject to unemployment insurance in order to be eligible for further education allowances. Periods during which weekly benefits and childcare allowances were received will continue to count towards this waiting period, but not if they fall within the last 26 weeks before the start of educational leave or part-time education. This is intended to prevent the previously popular extension of parental leave by means of educational leave.
Employees who have already completed a master's or diploma degree must, by way of derogation, have been employed for at least four years and subject to unemployment insurance in order to receive further training assistance.
The requirements for further training measures for which further training allowances are granted are also increasing. These must
· be at least 20 hours per week
· for persons with care responsibilities, at least 16 hours per week
For studies completed during educational leave, a minimum of 20 ECTS credits must be demonstrated after six months, or at least 16 ECTS credits for persons with care responsibilities.
Target group focus and employer subsidy
The new continuing education allowance is intended to provide targeted support to ‘less qualified’ employees. Therefore, employers will also be required to contribute 15% of the continuing education allowance for employees whose gross monthly income (2025) exceeds €3,225. The AMS continuing education allowance will be reduced by this amount. The employer subsidy, including any additional voluntary subsidies, may not exceed the marginal earnings threshold (€551.10 per month in 2025) and is therefore capped at this amount. Social security contributions will be paid by the AMS.
Employees with an income below half of the maximum contribution base (i.e. less than €3,225 gross in 2025) must complete educational counselling before beginning further training.
It remains to be seen whether the NEW educational leave and further training allowance will actually be implemented in this form.
We will be happy to continue advising you on all questions relating to labour law and on the drafting of agreements on educational leave and part-time education.
