Good to know
Local Currency: Euro (EUR)
Minimum Salary: There is no federal minimum wage in Austria. The minimum wage is fixed according to the collective agreement and the business sector.
Although there is no official minimum wage, the government asked the social partners to negotiate a minimum wage that would apply to all industries. It was set at 1,500 euros and came into effect in 2020.
Salary Payment: monthly
Salary Calculation: gross to net
Legal Working Hours: 40 hours/week (may vary by collective agreement)
About Austria
Austria is part of the European Union, with 8.773 million inhabitants in 2017. The current language is German, but other minority and regional languages can be spoken. It is a mountainous country, with steep alpine terrain. It is a fascinating and beautiful country to visit because of its baroque architecture and its imperial history.
The Republic of Austria is a Federal State composed of nine autonomous federal provinces (Burgenland, Carinthia, Lower Austria, Upper Austria, Salzburg, Styria, Tyrol, Vorarlberg and Vienna). The federal principle means that the legislative and executive powers are shared by the federal and provincial governments.
Are you looking to settle in Austria? Do you need help with payroll or human resources management Our payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
Ready to Benefit from Austrian HR & Payroll Experts?
Payroll in Austria - The Social Security System (for employees):
In Austria, social insurance refers to health, pension and accident insurance. In addition to these insurances, employees are covered by unemployment insurance.
Independently of their employment status, residents can receive family benefits and be supported in the event of dependency.
Social assistance and minimum income guarantee plans are the responsibility of the Länder (federal states).
Employees with a monthly salary of more than €475.86 are obliged to be covered by insurance:
- sickness-maternity, pensions (disability, old age, survivors) and occupational accidents and diseases, according to the General Social Insurance Act (Allgemeines Sozialversicherungsgesetz, ASVG);
- unemployment insurance according to the Unemployment Insurance Act (Arbeitslosenversicherungsgesetz, ALVG).
The employer is responsible for registering the employees with the Austrian Health Insurance Fund (Österreichische Gesundheitskasse, ÖGK).
Employees with a monthly salary of less than €475.86 are only covered for work-related accidents and occupational diseases.
If they wish to be covered for health care, daily allowances in case of sickness and maternity, or pensions, they must opt for voluntary insurance (flat-rate contribution of €67.18 per month).
However, it is not possible to voluntarily join the unemployment insurance (this option is only available to self-employed persons).
Organisation
Supervision
The Federal Ministry for Social Affairs, Health, Care and Consumer Protection (Bundesministerium für Soziales, Gesundheit, Pflege und Konsumentenschutz) is responsible for health, accident and pension insurance as well as for the nursing allowance.
Unemployment insurance is supervised by the Federal Ministry of Labour and Economy (Bundesministerium für Arbeit).
Family benefits are the responsibility of the Federal Chancellery (Bundeskanzleramt).
Management
The administration of social insurance (health, pension, accident) is carried out by 5 insurance institutions (Sozialversicherungsträger), autonomously managed bodies under public law. The work of the social insurance institutions is coordinated by the Dachverband der Sozialversicherungsträger.
About 100 local offices serve the unemployment insurance benefits under the direction of the national agency of the Labor Market Service (Arbeitsmarktservice Österreich).
Payroll in Austria - The social contributions
In Austria, social security is mainly financed by social security contributions.
The employer’s contribution to the Family Compensation Fund (Familienlastenausgleichsfonds) is paid for all employees without a minimum wage requirement. The other employer and employee contributions (except for the employee contribution for unemployment insurance) are due if the employee’s monthly earnings exceed the threshold amount of € 475.86. Employees with lower incomes can voluntarily take out health and pension insurance.
With the exception of the contribution to finance family benefits, the basis for calculating contributions is limited to €5,550 per month. For exceptional payments (13th and 14th month), an annual ceiling of €11,100 is applied.
Employer and employee contributions
Employer and employee contributions as of January 1, 2021 |
||||
| Branches | Employer’s share | Employee’s share | ||
| Social insurance | ||||
| Sickness, maternity (1) | 3,78% | 3,87% | ||
| Workplace accidents and occupational diseases | 1,2% (2) | – | ||
| Pensions (disability, old age, survivors) | 12,55% | 10,25% | ||
| Unemployment | 3% | 3% (3) | ||
| Family benefits (4) | 3,9% | – | ||
Notes
(1) A partner can be insured under the health insurance plan of the insured person if they have no income of their own or if they are only marginally employed. In the case of this co-insurance, the insured employee must – with some exceptions – pay an additional contribution. This amounts to 3.4% of the contribution base. The co-insurance entitles the employee to benefits in kind (health care, medication).
(2) The contribution is not due for employees aged 60 and over.
(3) The employee contribution is not due for monthly income below €1,790. A reduced rate applies to income up to €2,117 (1% for income between €1,790 and €1,953; 2% for income between €1,953 and €2,117). In addition, the employer’s and employee’s contributions are waived for employees over 63 years of age as well as for those entitled to an old-age pension.
(4) Rate 2020. The contribution is not due for people with a disability or for employees aged 60 and over. If the contribution base exceeds a certain limit, it is reduced.
Collection
Contributions for sickness and maternity insurance, pensions, occupational injuries and unemployment are collected by the health insurance funds. They must be transferred by the employer by the 15th of the month following the month to which they relate.
Source : The Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Austria.
Our Payroll and HR services in Austria
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Austria
HR & Payroll in Austria
Good to know
Local Currency: Euro (EUR)
Minimum Salary: There is no federal minimum wage in Austria. The minimum wage is fixed according to the collective agreement and the business sector.
Although there is no official minimum wage, the government asked the social partners to negotiate a minimum wage that would apply to all industries. It was set at 1,500 euros and came into effect in 2020.
Salary Payment: monthly
Salary Calculation: gross to net
Legal Working Hours: 40 hours/week (may vary by collective agreement)
Ready to Benefit from Austrian HR & Payroll Experts?
About Austria
Austria is part of the European Union, with 8.773 million inhabitants in 2017. The current language is German, but other minority and regional languages can be spoken. It is a mountainous country, with steep alpine terrain. It is a fascinating and beautiful country to visit because of its baroque architecture and its imperial history.
The Republic of Austria is a Federal State composed of nine autonomous federal provinces (Burgenland, Carinthia, Lower Austria, Upper Austria, Salzburg, Styria, Tyrol, Vorarlberg and Vienna). The federal principle means that the legislative and executive powers are shared by the federal and provincial governments.
Are you looking to settle in Austria? Do you need help with payroll or human resources management Our payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
Payroll in Austria - The Social Security System (for employees)
In Austria, social insurance refers to health, pension and accident insurance. In addition to these insurances, employees are covered by unemployment insurance.
Independently of their employment status, residents can receive family benefits and be supported in the event of dependency.
Social assistance and minimum income guarantee plans are the responsibility of the Länder (federal states).
Employees with a monthly salary of more than €475.86 are obliged to be covered by insurance:
- sickness-maternity, pensions (disability, old age, survivors) and occupational accidents and diseases, according to the General Social Insurance Act (Allgemeines Sozialversicherungsgesetz, ASVG);
- unemployment insurance according to the Unemployment Insurance Act (Arbeitslosenversicherungsgesetz, ALVG).
The employer is responsible for registering the employees with the Austrian Health Insurance Fund (Österreichische Gesundheitskasse, ÖGK).
Employees with a monthly salary of less than €475.86 are only covered for work-related accidents and occupational diseases.
If they wish to be covered for health care, daily allowances in case of sickness and maternity, or pensions, they must opt for voluntary insurance (flat-rate contribution of €67.18 per month).
However, it is not possible to voluntarily join the unemployment insurance (this option is only available to self-employed persons).
Organisation
Supervision
The Federal Ministry for Social Affairs, Health, Care and Consumer Protection (Bundesministerium für Soziales, Gesundheit, Pflege und Konsumentenschutz) is responsible for health, accident and pension insurance as well as for the nursing allowance.
Unemployment insurance is supervised by the Federal Ministry of Labour and Economy (Bundesministerium für Arbeit).
Family benefits are the responsibility of the Federal Chancellery (Bundeskanzleramt).
Management
The administration of social insurance (health, pension, accident) is carried out by 5 insurance institutions (Sozialversicherungsträger), autonomously managed bodies under public law. The work of the social insurance institutions is coordinated by the Dachverband der Sozialversicherungsträger.
About 100 local offices serve the unemployment insurance benefits under the direction of the national agency of the Labor Market Service (Arbeitsmarktservice Österreich).
Payroll in Austria - The social contributions
In Austria, social security is mainly financed by social security contributions.
The employer’s contribution to the Family Compensation Fund (Familienlastenausgleichsfonds) is paid for all employees without a minimum wage requirement. The other employer and employee contributions (except for the employee contribution for unemployment insurance) are due if the employee’s monthly earnings exceed the threshold amount of € 475.86. Employees with lower incomes can voluntarily take out health and pension insurance.
With the exception of the contribution to finance family benefits, the basis for calculating contributions is limited to €5,550 per month. For exceptional payments (13th and 14th month), an annual ceiling of €11,100 is applied.
Employer & Employee Contributions
Employer and employee contributions as of January 1, 2021 |
||||
| Branches | Employer’s share | Employee’s share | ||
| Social insurance | ||||
| Sickness, maternity (1) | 3,78% | 3,87% | ||
| Workplace accidents and occupational diseases | 1,2% (2) | – | ||
| Pensions (disability, old age, survivors) | 12,55% | 10,25% | ||
| Unemployment | 3% | 3% (3) | ||
| Family benefits (4) | 3,9% | – | ||
Notes
(1) A partner can be insured under the health insurance plan of the insured person if they have no income of their own or if they are only marginally employed. In the case of this co-insurance, the insured employee must – with some exceptions – pay an additional contribution. This amounts to 3.4% of the contribution base. The co-insurance entitles the employee to benefits in kind (health care, medication).
(2) The contribution is not due for employees aged 60 and over.
(3) The employee contribution is not due for monthly income below €1,790. A reduced rate applies to income up to €2,117 (1% for income between €1,790 and €1,953; 2% for income between €1,953 and €2,117). In addition, the employer’s and employee’s contributions are waived for employees over 63 years of age as well as for those entitled to an old-age pension.
(4) Rate 2020. The contribution is not due for people with a disability or for employees aged 60 and over. If the contribution base exceeds a certain limit, it is reduced.
Collection
Contributions for sickness and maternity insurance, pensions, occupational injuries and unemployment are collected by the health insurance funds. They must be transferred by the employer by the 15th of the month following the month to which they relate.
Source : Le Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Austria.
Our Payroll and HR services in Austria
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Euro (EUR)
Minimum Salary: There is no federal minimum wage in Austria. The minimum wage is fixed according to the collective agreement and the business sector.
Although there is no official minimum wage, the government asked the social partners to negotiate a minimum wage that would apply to all industries. It was set at 1,500 euros and came into effect in 2020.
Salary Payment: monthly
Salary Calculation: gross to net
Legal Working Hours: 40 hours/week (may vary by collective agreement)
Ready to Benefit from Austrian HR & Payroll Experts?
About Austria
Austria is part of the European Union, with 8.773 million inhabitants in 2017. The current language is German, but other minority and regional languages can be spoken. It is a mountainous country, with steep alpine terrain. It is a fascinating and beautiful country to visit because of its baroque architecture and its imperial history.
The Republic of Austria is a Federal State composed of nine autonomous federal provinces (Burgenland, Carinthia, Lower Austria, Upper Austria, Salzburg, Styria, Tyrol, Vorarlberg and Vienna). The federal principle means that the legislative and executive powers are shared by the federal and provincial governments.
Are you looking to settle in Austria? Do you need help with payroll or human resources management Our payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
Payroll in Austria - The Social Security System (for employees)
In Austria, social insurance refers to health, pension and accident insurance. In addition to these insurances, employees are covered by unemployment insurance.
Independently of their employment status, residents can receive family benefits and be supported in the event of dependency.
Social assistance and minimum income guarantee plans are the responsibility of the Länder (federal states).
Employees with a monthly salary of more than €475.86 are obliged to be covered by insurance:
- sickness-maternity, pensions (disability, old age, survivors) and occupational accidents and diseases, according to the General Social Insurance Act (Allgemeines Sozialversicherungsgesetz, ASVG);
- unemployment insurance according to the Unemployment Insurance Act (Arbeitslosenversicherungsgesetz, ALVG).
The employer is responsible for registering the employees with the Austrian Health Insurance Fund (Österreichische Gesundheitskasse, ÖGK).
Employees with a monthly salary of less than €475.86 are only covered for work-related accidents and occupational diseases.
If they wish to be covered for health care, daily allowances in case of sickness and maternity, or pensions, they must opt for voluntary insurance (flat-rate contribution of €67.18 per month).
However, it is not possible to voluntarily join the unemployment insurance (this option is only available to self-employed persons).
Organisation
Supervision
The Federal Ministry for Social Affairs, Health, Care and Consumer Protection (Bundesministerium für Soziales, Gesundheit, Pflege und Konsumentenschutz) is responsible for health, accident and pension insurance as well as for the nursing allowance.
Unemployment insurance is supervised by the Federal Ministry of Labour and Economy (Bundesministerium für Arbeit).
Family benefits are the responsibility of the Federal Chancellery (Bundeskanzleramt).
Management
The administration of social insurance (health, pension, accident) is carried out by 5 insurance institutions (Sozialversicherungsträger), autonomously managed bodies under public law. The work of the social insurance institutions is coordinated by the Dachverband der Sozialversicherungsträger.
About 100 local offices serve the unemployment insurance benefits under the direction of the national agency of the Labor Market Service (Arbeitsmarktservice Österreich).
Payroll in Austria - The social contributions
In Austria, social security is mainly financed by social security contributions.
The employer’s contribution to the Family Compensation Fund (Familienlastenausgleichsfonds) is paid for all employees without a minimum wage requirement. The other employer and employee contributions (except for the employee contribution for unemployment insurance) are due if the employee’s monthly earnings exceed the threshold amount of € 475.86. Employees with lower incomes can voluntarily take out health and pension insurance.
With the exception of the contribution to finance family benefits, the basis for calculating contributions is limited to €5,550 per month. For exceptional payments (13th and 14th month), an annual ceiling of €11,100 is applied.
Employer & Employee contributions
Employer and employee contributions as of January 1, 2021 |
||||
| Branches | Employer’s share | Employee’s share | ||
| Social insurance | ||||
| Sickness, maternity (1) | 3,78% | 3,87% | ||
| Workplace accidents and occupational diseases | 1,2% (2) | – | ||
| Pensions (disability, old age, survivors) | 12,55% | 10,25% | ||
| Unemployment | 3% | 3% (3) | ||
| Family benefits (4) | 3,9% | – | ||
Notes
(1) A partner can be insured under the health insurance plan of the insured person if they have no income of their own or if they are only marginally employed. In the case of this co-insurance, the insured employee must – with some exceptions – pay an additional contribution. This amounts to 3.4% of the contribution base. The co-insurance entitles the employee to benefits in kind (health care, medication).
(2) The contribution is not due for employees aged 60 and over.
(3) The employee contribution is not due for monthly income below €1,790. A reduced rate applies to income up to €2,117 (1% for income between €1,790 and €1,953; 2% for income between €1,953 and €2,117). In addition, the employer’s and employee’s contributions are waived for employees over 63 years of age as well as for those entitled to an old-age pension.
(4) Rate 2020. The contribution is not due for people with a disability or for employees aged 60 and over. If the contribution base exceeds a certain limit, it is reduced.
Collection
Contributions for sickness and maternity insurance, pensions, occupational injuries and unemployment are collected by the health insurance funds. They must be transferred by the employer by the 15th of the month following the month to which they relate.
Source : Le Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Austria.
Our Payroll and HR services in Austria
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure