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6.1 Social Security

The Austrian social security system provides that a portion of the employee's gross salary must be withheld for: pension insurance, unemployment insurance, health insurance, accident insurance etc. Although payments are paid by the employer and the employee, it is the employer who is ultimately liable for making the social security withdrawal on a monthly basis. The maximum assessment basis in 2014 is € 4,530,00.

The rates are as follows depending on the status of the employee:

Employer: 23.4%
Employee: 18.1%

6.1.1 Additional Charges for the Employer

  • Employer's contribution to child benefit fund (Dienstgeberbeitrag, DB) 4.5% of gross monthly salary
  • Surcharge on employer’s contribution (Zuschlag zu Dienstgeberbeitrag, DZ) 0.40% (for Vienna) of the assessment basis for contribution of DB (varies between the Austrian countries)
  • Municipal tax (Kommunalsteuer) on total sum of wages and salaries paid (3%).

6.2 Employment of Foreign Staff

Staff may be assigned between the subsidiaryand the parent to work within Austria. Non-EU employees must, of course, obtain valid visas and working permits. Most double tax treaties concluded by Austria provide that income from employment earned working abroad is taxable in the state of residence if the employee is present in the other state for not more than 183 days during the tax year (i.e. an employee of a foreign company located in a treaty state who is in Austria for more than 183 days during the calendar year is subject to Austrian taxation).

6.3 Medical

Health insurance for employees is obligatory in Austria with some exceptions. The health services of the doctors or hospitals are free of charge except special services by dentists. Self-employed persons have a similar system but they have a kind of self-retention depending on their income.

6.4 Payroll Taxes

Employees in Austria are subject to the Income Tax with their twelve monthly payments. In Austria the employees get in addition to the monthly payments two further payments which are subject only to a fixed rate of 6%.

Further charges for the employer are described under number 6.1.