University budget 2028–2030: FAQs

The total effective budget earmarked for all 23 public universities for the 2028–2030 period amounts to €16.003 billion. In nominal terms, this is equivalent to the budget for the current 2025–2027 period (€15.994 billion). Of this amount, €15.893 billion has been allocated to the universities in the federal budget, while €110 million has been earmarked for relief measures (a reduction in non-wage labour costs of €50 million and a deferral of BIG [Federal Real Estate Company] rent payments of €60 million). The university budget is therefore €235 million higher than the amount originally set out in the Federal Medium-Term Expenditure Framework Act (€15.658 billion).

In nominal terms, the total effective budget for the universities remains unchanged. From 2025 to 2027, universities also had around €16 billion available: the original figure was €16.3 billion (including salary increases for doctors), but this was reduced to €15.994 billion through savings (€129.47 million less) and the universities’ solidarity contribution to the Research, Technology and Innovation Pact (€150 million less).

The necessary framework is now in place and the total effective budget for all 23 public universities has been set. The total amount under § 12 para 2 of the Universities Act 2002 (UG)has also been determined on this basis and must be finalised by 31 October. This amount will provide the framework for the performance agreements with the 22 public universities under the Universities Act 2002 and will be distributed through the three-pillar model of university funding. However, there are also other legal obligations that must be financed (in part) from the university budget, but which are not included in the total amount (such as the development of the Faculty of Medicine in Linz).

Universities now have a clear picture of the overall financial situation. As autonomous legal entities, the universities themselves are responsible for the efficient use of public funds. The rectors know their own universities best. Strategic decisions are now required, particularly with regard to cooperation and efficiency improvements, to ensure that the €16 billion is used as effectively as possible. The shared goals and priorities for the 2028–2030 period are set out in the performance agreements negotiated jointly by the universities and the Federal Ministry of Women, Science and Research.

A distinction needs to be made: the Federal Government has now agreed on a total effective budget for all 23 public universities. The total amount under § 12 (2) of the Universities Act is derived from this figure and is allocated to the universities through the performance agreements. From this, each university receives its performance agreement budget or global budget – in other words, the amount it will actually receive. The universities will be informed of the proposed amounts in advance of the actual performance agreement negotiations, which usually begin in the autumn of the relevant negotiation year, i.e. autumn 2027. However, on the basis of the total effective budget for all 23 universities, universities can already gain an initial indication of what this means for them individually.

The Federal Government has decided to reduce the rate of employer contributions to the Family Burdens Equalisation Fund (FLAF) from 3.7 per cent to 2.7 per cent. This will result in a reduction in non-wage labour costs of approximately €50 million over three years (2028–2030). This reduction is included in the total effective budget as a relief measure.

This refers to the financial relief resulting from measures taken by BIG, particularly the deferral of rent payments and associated investment expenditure totalling €60 million. This is also factored into the total effective budget.

These terms describe different stages of university funding:

• Total effective budget (€16.003 billion): everything that financially benefits the 23 public universities from 2028 to 2030 – the university budget (€15.893 billion) and the relief measures (€110 million).
• Total amount under § 12 (2) of the Universities Act: the framework derived from this for the performance agreements with the 22 public universities under the Universities Act 2002. This is divided among three budget pillars. Other legal obligations, such as those relating to the Faculty of Medicine in Linz, are not included.
• Performance agreement budget: the budget of a university as set out in a performance agreement. The combined total of the budgets of all 23 performance agreements is also referred to as the performance agreement budget.
• Global budget (§ 12a UG): describes how the performance agreement budget is used. Universities have the autonomy to allocate their funding as they see fit in order to achieve the objectives and plans set out in the performance agreements.

A graphic illustrating this can be found on the University Funding page.

The university budget essentially consists of the performance agreement budget (the combined total of the budgets agreed with the individual universities in all performance agreements) and other legal obligations, such as those arising from agreements under Article 15a of the Federal Constitutional Act (e.g. the Faculty of Medicine in Linz).

The total amount under § 12 (2) of the Universities Act, and thus the performance agreement budgets of the universities under the Universities Act 2002, comprises three pillars: Pillar 1 – component for teaching; Pillar 2 – component for research and the advancement and appreciation of the arts; and Pillar 3 – infrastructure and strategic development, which covers the universities’ special expenditure (such as rent). Only the first two pillars are calculated on the basis of indicators, i.e. target values. This three-pillar model does not apply to the University for Continuing Education Krems (§ 40e UG) or to IT:U, the Interdisciplinary Transformation University Austria (IT:U Act), although their performance agreement budgets are included in the performance agreement budget of all universities.

The most important target value for teaching is examination activity, defined as the number of degree programmes with at least 16 ECTS credits per academic year in which students are actively taking examinations. The research component (basic research performance) is based on the number of scientific and artistic staff employed by the university.

Yes, it is. It was also included in the 2025–2027 period. However, its performance agreement budget is not calculated according to the three-pillar model of university funding set out in §§ 12 and 12a of the Universities Act, but rather in accordance with the IT:U Act. The same applies to the University for Continuing Education Krems (§ 40e UG).

Yes, in a welcome move, the universities are contributing €150 million for 2027 to help ensure funding for the Research, Technology and Innovation Pact.

The money will not be lost to science and research: it will be channelled through the Austrian Science Fund (FWF) to research projects on a competitive basis and will primarily return to the universities themselves.

Over many years, the Federal Ministry of Women, Science and Research has developed a comprehensive toolkit of governance instruments that play a key role in monitoring, steering and developing the higher education system.

They include:

• the Austrian Higher Education Plan 2030 (HoP)
• the development plans of the individual higher education institutions, particularly those of the public universities
• the Austrian National Development Plan for Public Universities (GUEP)
• the Strategy for Research, Technology and Innovation (RTI Strategy)

These are then translated into specific objectives and plans during the performance agreement negotiations. This determines the budget required by each university to implement these measures. The budget set out in the performance agreement is the performance agreement budget for the individual university; the combined total of the budgets of all 23 performance agreements is also referred to as the performance agreement budget. It is known as the global budget (§ 12a UG) because universities have the autonomy to allocate their funding as they see fit in order to achieve the objectives and plans set out in the performance agreements.

The Federal Government has ruled out increasing the existing tuition fees or introducing tuition fees for all students: the budget will not be consolidated at the expense of students. Student grants will therefore continue to be adjusted annually for inflation in order to provide financial support to those who need it, particularly at this time.

Within the scope of their autonomy, the universities themselves will determine which specific measures to implement. This also applies to the issue of how degree programmes and teaching can be organised efficiently without compromising on quality.

As part of the upcoming negotiations on performance agreements, the universities and the Federal Ministry of Women, Science and Research will jointly set out the objectives and priorities for the 2028–2030 period.

No; the Federal Government has ruled out increasing the existing tuition fees or introducing tuition fees for all students. By contrast, student grants will continue to be adjusted for inflation, despite the need for budget consolidation.

The admission regulations under §§ 71a to 71d of the Universities Act are currently being evaluated and the results will be available shortly. A decision will then be made on the future framework. The current regulations will remain in force until 31 December 2027.

There is no one-size-fits-all answer to this question. In principle, responsibility for staffing lies within the autonomy of the universities. Rectorates decide where specific savings can be made. Staffing will therefore certainly be a key issue in the performance agreement negotiations, in which the universities and the Federal Ministry of Women, Science and Research will negotiate the shared priorities and objectives for the 2028–2030 period.

However, the Federal Ministry of Women, Science and Research also expects universities to exercise their staffing responsibilities professionally, sensibly and in a socially responsible manner. A large number of staff are due to retire in the coming years, which may well provide some flexibility. Above all, this means that any potential for structural efficiency should be utilised first. Savings at the expense of early-career academics and researchers must be avoided.

Yes; the Federal Government has made it clear that doctors’ salaries at the medical universities and the Faculty of Medicine in Linz are safeguarded. These salaries are included in the total effective budget of €16 billion. The Federal Government, in particular Federal Minister Eva-Maria Holzleitner, has emphasised the importance of doctors at the medical universities for healthcare provision in Austria.

The actual salary agreements for doctors are negotiated between employer and employee representatives. The Federal Ministry of Women, Science and Research does not play an active role in this process. The relevant collective contracts for the university sector and the employees' council agreements at the individual medical universities form the basis of these negotiations. Responsibility for staffing lies within the autonomy of the universities.

Healthcare is a matter of national responsibility. The hospital maintaining bodies (which fall under the remit of the federal states) are responsible for providing it, with support from the medical universities. The Federal Ministry of Women, Science and Research is aware of the sensitivity of this area, particularly when it comes to cuts. The Ministry expects universities to act within their budgetary constraints and to exercise moderation in fulfilling their responsibilities.

Healthcare is a matter of national responsibility. The hospital maintaining bodies (which fall under the remit of the federal states) are responsible for providing it, with support from the medical universities. The universities provide all medical staff (doctors) in Vienna (University Hospital Vienna) and half of all doctors in Graz and Innsbruck (regional hospitals). Relevant agreements are in place between the Federal Ministry of Women, Science and Research, the Federal Ministry of Finance and the federal states or the City of Vienna, and these agreements will naturally remain in force. As the doctors’ employers, the universities are responsible for implementing these agreements.