Allgemeines Sozialversicherungsgesetz

   General Social Insurance Law

   (ASVG)

   Enacted in 1955, this measure brought virtually all Austrians into a single government-managed pension and social insurance network. Many of its provisions had already been part of welfare arrangements introduced by the imperial Habsburg government and the First Austrian Republic. The law, which has been repeatedly amended but not substantially altered, provides for unemployment compensation, sick pay and leave, accident insurance, and retirement pensions. It is funded through employer and employee contributions according to income. Where these contributions do not cover service costs, the state makes up the difference.

   Medical insurance includes physicians’ fees, pharmaceuticals, and hospitalization. In the case of accidental injury and death, the ASVG covers the expenses of physical therapy, disability, and survivors’ benefits. Retirement pensions are based not only on age but also on declining ability to work.