Social security covers the people’s need for social protection. Thus, it forms an integral part of social peace in Austria and offers certain benefits for all circumstances, like for example sickness, accident or old age. In the beginning, social protection focused on certain, economically weak segments of the Austrian population. Today, nearly all occupational groups in Austria are covered by social security, irrespective of income.

Social security is characterized by the solidarity principle. Since contributions are based on incomes, benefits payable to economically weaker groups are, in part, covered by contributions of those at the upper end of the income scale. Contributions must not be matched by equivalent benefits or opportunities for benefits (equivalence principle), as it is the case with private insurance premiums.

The Farmers' Social Security Authority covers all three branches i.e. health, accident and retirement insurance for all those self-employed in agriculture and forestry.

The basic concepts of Austrian social security
Social security is made up of health, accident and retirement insurance. Granting of insurance benefits is dependent on the occurrence of the respective insured event (e.g. sickness, accident at work, maternity, old age). Only after occurrence of a defined event, social security will grant the benefits stipulated by law. A typical feature of Austrian social security is compulsory membership.

This implies that the insurance does not result from a voluntary application, as under private insurance schemes, but from the existence of certain conditions as defined by law (e.g. entering employment status, starting a self-employed activity). Thus, compulsory insurance is established without declaration of intent on the part of the insured as well as of the insurer.

Moreover, the insured will be automatically assigned to a social security institution on the basis of the legal framework. Equally, entering the insurance scheme is even independent of prior registration or payment of contributions. This provides for the system to be carried by a broad base of insured people (defined by the gainfully employed) which is the precondition for the working of the solidarity principle.

In social security terms, as opposed to the private insurance equivalence principle, this means that benefits are the same for all, irrespective of the amount of contributions paid.

As a result of these principles, social security creates social balance: with regard to contributions, between groups at both ends of the income scale; and with regard to benefits, between those more and those less at risk.  

Legal benefits
Most benefits are legally stipulated compulsory benefits payable by social security. This means that the benefits must be granted by SVB, if the respective legal requirements are met. If the SVB concludes that the necessary requirements are not met, the insured affected can assert the claim to the respective benefit by way of legal action (no costs, need not be made through a lawyer) before an independent court i.e. the competent Labour Court.

Organisation of farmers’ social security : an independent administration
Farmers' social security is not run by national administration, but on the basis of independent authority. Independent authority means that the state transfers certain administrative responsibilities to those groups in society who have a direct interest in these matters. Representatives of these groups of people form administrative bodies performing administrative tasks without having to accept instructions from anyone. This means that, within the legal framework, it is the farmers themselves, who, as representatives of the insured, are responsible for the administration of the farmers’ social security.