The Austrian backpack idea centers on a worker social security style fund that pays out when a job ends. It is described as a portable, individual account that travels with a person through their working life, funded by contributions from employers and existing social payments.
In its election platform, HE PP discusses the Austrian backpack as a system in which workers receive a portion of their gross salary deposited into a fund. Each worker has an identified account under the fund, managed by a legal entity that can convert the balances into capital when needed. If a dismissal occurs, the worker can receive their pay immediately or set it aside for future use, in addition to pension rights. The program explains that these accounts would be fed by monthly employer contributions and some social contributions already paid, ensuring the worker is supported throughout their career. The aim is to improve protections for workers and reduce barriers to voluntary job changes for those with more seniority.
The proposal has been examined by financial authorities such as the Bank of Spain, and has recurred in discussions by both PP and PSOE as a potential way to boost labor mobility. Critics warn that such a system could raise labor costs for companies and might affect severance practices. The party platform does not explicitly state whether this model would replace existing severance pay or sit alongside it.
Feijóo presents PP’s selection program for 23J
The PP program also emphasizes guarantees for pension revaluation within the Toledo Pact framework and the long-term sustainability of the system. It mentions the possibility of additional social contributions for workers who extend their working hours and seeks to improve access to social benefits through closer coordination with autonomous communities.