2015: "The social welfare state is the most important invention of the 20th century". The General Social Insurance Act 60 years on.

Implementation: Dr. Guenther Steiner
Funded by: Hauptverband der österreichischen Sozialversicherungsträger
(Main Association of Austrian Social Security Organisations), Vienna
Completed in: November 2015

On the occasion of the 60th anniversary of the coming into force of the General Social Insurance Act on January 1st, 1956 the author has submitted an overview of the genesis of this law and its development over the last 60 years.

Following a short theoretical chapter on social security and social insurance, the study focuses on two main issues:

  • first the genesis of social security in Austria and the developments that led to the implementation of the General Social Security Act in September 1955 as well as the characteristics of this law;
  • secondly it traces the development of the law based on its most important amendments.

This second section is structured into the general fields of organisation, health insurance, accident insurance and pension insurance, a subdivision that admittedly could not be strictly maintained throughout.

The aim of the work is an overview and analysis of the development and dynamics of the General Social Insurance Act against the background of political, economic and social changes, completed by conclusions and an extensive statistical part.

In its genesis, the General Social Insurance Act was an expression of what was politically possible regarding a reform of the social security system. In its 60 year history since it has been a seismograph of social and economic change. It altered the consciousness of social problems and helped maintain the social equilibrium. Precisely because it has to be amended often it is difficult to alter it fundamentally; amongst other reasons because it is politically and ideologically contested.

The General Social Insurance Act is on the one hand very dynamic and at the same time a slow-moving machine. Even at the time of its introduction, its creators were aware of the fact that it was based on ideas that were seventy years old even then. It might be argued that temporary solutions do have a long tradition in Austria, and the General Social Insurance Act is an excellent example of this phenomenon. But it might also be argued that, at least so far, no better solution has been presented.