--- title: "Austria" id: "11681" type: "global-payroll" slug: "austria" published_at: "2025-08-02T04:34:56+00:00" modified_at: "2026-09-22T14:12:30+00:00" url: "https://topsourceworldwide.com/global-payroll/austria/" markdown_url: "https://topsourceworldwide.com/global-payroll/austria.md" taxonomy_continent: - "Europe" --- # Payroll Services in Austria Fully managed Austrian payroll – social insurance up to the 2026 ceiling, wage tax on 14 salaries, employer levies and the monthly contribution report filed by the 15th, with a named specialist a phone call away. [Get in touch](https://topsourceworldwide.com/contact-us/) TopSource rated 5/5 by our customers - - - - - [Read reviews](#testimonials) ## What Austrian payroll actually involves Austrian payroll runs on 14 salaries a year, a social insurance ceiling and a set of employer levies that sit outside social insurance. Collective agreements, not statute, set minimum pay for almost every employee. ### About 30% on top of gross pay Employer social insurance of 20.98% plus severance fund, family fund, municipal tax and chamber levies brings the cost to roughly 30% of gross salary. ### 14 salaries, not 12 Collective agreements give almost every employee a 13th and 14th salary. Both are taxed at a reduced rate and have their own social insurance ceiling. ### A ceiling on social insurance Social insurance stops at EUR 6,930 a month in 2026, plus EUR 13,860 a year on the two extra salaries. The employer levies have no ceiling. ### Everything is due on the 15th Wage tax, employer levies, the monthly contribution report and social insurance for a month are all due by the 15th of the following month. ### No statutory minimum wage Collective agreements set minimum pay, allowances and pay rises for around 98% of employees, so the agreement for your sector decides the floor. ## Our Partners Globally ## Calculate Your Employee Costs in Austria Enter a gross annual salary, including the 13th and 14th salaries, to see the employer cost of an employee in Vienna: 21.23% social insurance up to EUR 97,020 a year, 1.53% severance fund, 3.7% family fund, 0.36% chamber levy, 3% municipal tax and the Vienna transport levy of EUR 2 a week. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us) ##### Austria Annually Monthly | | British Pound | Austria | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## Know your Austrian hiring costs before you commit Tell us the role and the gross salary – we’ll send back the full Austrian employer cost, 14 salaries, social insurance and levies included, within one business day. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## Employer Costs in Austria Explained An Austrian employee costs about 30% on top of gross salary: 20.98% employer social insurance, or 21.23% in Vienna, plus 1.53% to the severance fund, 3.7% to the family fund, a chamber levy of around 0.35% and 3% municipal tax. Social insurance stops at the 2026 ceiling of EUR 6,930 a month, so the rate falls for high earners, but the levies never cap. Salaries are paid 14 times a year. Here’s the breakdown. #### Social insurance and the 2026 ceiling The employer pays 20.98% of gross pay in social insurance in 2026: 3.78% health, 12.55% pension, 2.95% unemployment, 1.10% accident insurance, 0.10% insolvency fund and 0.50% housing contribution. The employee pays 18.07%: 3.87% health, 10.25% pension, 2.95% unemployment, 0.50% chamber of labour and 0.50% housing. Vienna raised the housing contribution to 1.5% from January 2026, split 0.75% each way. Contributions are calculated up to the maximum contribution base of EUR 6,930 a month, and on the 13th and 14th salaries up to EUR 13,860 a year. Employees earning up to EUR 2,225 a month pay no unemployment contribution, and those up to EUR 2,630 pay a reduced rate. Employment up to EUR 551.10 a month is marginal and carries accident insurance only for the employee. #### Employer levies outside social insurance On top of social insurance, the employer pays 1.53% of gross pay to the employee’s severance fund from the second month of employment, which replaces statutory severance for contracts since 2003. It also pays 3.7% to the family burden equalisation fund, a chamber levy on that base of between 0.31% and 0.40% depending on the federal state, and 3% municipal tax. Employers in Vienna add EUR 2 per employee for each week or part week. None of these levies has a ceiling, which is why the employer cost of a senior hire falls to about 25% rather than further. #### Wage tax and the 13th and 14th salaries Wage tax is withheld monthly on the progressive 2026 scale: nothing on annual income up to EUR 13,539, then 20%, 30%, 40%, 48% and 50%, with 55% above EUR 1 million. The brackets rose by two thirds of inflation for 2026. The 13th and 14th salaries are taxed separately and much more lightly. After an allowance of EUR 620 a year, special payments within a sixth of regular annual pay are taxed at 6%, which is why Austrian employees compare offers on annual gross across 14 payments. Overtime premiums are tax-free up to EUR 170 a month in 2026. #### Monthly and annual filing Employees must be registered with the health insurance fund before they start work. Each month the employer submits the contribution report, mBGM, and pays social insurance by the 15th of the following month, and pays wage tax, the family fund contribution and the chamber levy to the tax office and municipal tax to the municipality by the same date. After the year ends, the annual pay slip for each employee, form L16, goes to the tax office electronically by the end of February, and the municipal tax return is due by 31 March. A foreign company without an Austrian entity can register as an employer with the health insurance fund and run Austrian payroll directly. #### Leave, sick pay and notice Employees are entitled to five weeks of paid leave, 25 working days, rising to six weeks after 25 years of service. Sick pay is continued in full for six weeks in the first year of service, rising to eight weeks after one year, ten after 15 and twelve after 25, followed by four weeks at half pay. Employer notice runs from six weeks in the first two years to five months after 25 years, normally ending on a quarter day unless the contract allows the 15th or last day of a month. The same rules have applied to blue-collar and white-collar employees since October 2021, although some collective agreements set shorter periods for seasonal sectors. ## Austrian social insurance and employer levies, 2026 | Contribution | Employer | Employee | Applies to | | --- | --- | --- | --- | | Health insurance | 3.78% | 3.87% | Up to EUR 6,930 a month | | Pension insurance | 12.55% | 10.25% | Same ceiling | | Unemployment insurance | 2.95% | Up to 2.95% | Reduced employee rate up to EUR 2,630 a month | | Accident insurance | 1.10% | — | Same ceiling | | Insolvency fund, housing and chamber of labour | 0.60% | 1.00% | Housing 0.75% each way in Vienna | | Severance fund | 1.53% | — | All gross pay, from the second month | | Family fund and chamber levy | 3.7% plus 0.31% to 0.40% | — | All gross pay, no ceiling | | Municipal tax | 3% | — | All gross pay, no ceiling | ### Wage tax brackets, 2026 | Annual taxable income | Rate | Note | | --- | --- | --- | | Up to EUR 13,539 | 0% | | | EUR 13,539 to 21,992 | 20% | | | EUR 21,992 to 36,458 | 30% | | | EUR 36,458 to 70,365 | 40% | | | EUR 70,365 to 104,859 | 48% | 50% up to EUR 1 million, 55% above | ### Employer cost of an employee in Vienna by gross salary, 2026 | Monthly gross salary, paid 14 times | Social insurance a year | Levies a year | Total a year | On top of gross pay | | --- | --- | --- | --- | --- | | EUR 3,000 | EUR 8,917 | EUR 3,712 | EUR 12,628 | 30.07% | | EUR 4,500 | EUR 13,375 | EUR 5,516 | EUR 18,891 | 29.99% | | EUR 6,930 | EUR 20,597 | EUR 8,438 | EUR 29,035 | 29.93% | | EUR 9,000 | EUR 20,597 | EUR 10,927 | EUR 31,525 | 25.02% | Social insurance at the Vienna employer rate of 21.23%, up to EUR 97,020 a year across 14 payments. Levies are the 1.53% severance fund, 3.7% family fund, 0.36% Vienna chamber levy, 3% municipal tax and the Vienna levy of about EUR 104 a year. These are TopSource calculations from the verified 2026 rates. Rates, ceilings and statutory amounts shown are for 2026 and were verified on 21 September 2026. The contribution ceiling and tax brackets are reset every January, and collective agreement minimums change on their own dates. This page is general information, not tax or legal advice. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) ## How our Austrian payroll service works 1. Map your setup We confirm your employer registration with the health insurance fund and your tax number, the collective agreement that applies and your severance fund, then work through classifications, allowances, overtime rules and benefits. 2. Migrate or onboard New employees are registered before they start and assigned to the correct collective agreement grade. Year-to-date pay and special payments are carried across so the ceilings and the reduced tax on the 13th and 14th salaries apply correctly. 3. Run and review Each period you receive a payroll report for approval before anything is paid: gross to net per employee, social insurance, wage tax, special payments and every employer levy, with variances explained. Nothing is submitted, paid or filed until you approve it. 4. File and pay We submit the monthly contribution report and schedule social insurance, wage tax, the family fund, the chamber levy and municipal tax by the 15th, then file the L16 forms by the end of February and the municipal tax return by 31 March. 5. Stay current Austrian payroll resets every January and collective agreements move on their own dates. We apply new ceilings, brackets and agreement increases, and re-verify the figures on this page. ## Why TopSource for Austrian Payroll TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. We don’t hide fees or sneak price increases. We run Austrian payroll in-house and file under your own registrations rather than a bureau’s, so the same team that files your returns answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions, taxes and fees, and one live Portico view of Austria beside every other country we run for you. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified. [Global Payroll](https://topsourceworldwide.com/global-payroll/) [Get Started](https://topsourceworldwide.com/contact-us/) ## Other services Accelerating your growth in Austria and beyond #### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment. ### Global Employer of Record (EOR) services With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion. ### Actionable HR Advisory On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking. ### Global entity management Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business. ### Accounting We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction. ## Meet our experts for Austria Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way. [Our People](https://topsourceworldwide.com/our-people/) ## Beyond a payroll service **A globalization accelerator** A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth. - [Payroll platform](#) - [Audit](#) - [Intelligence](#) - [Advisory](#) ##### Payroll platform ###### Global payroll simplified Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity. ##### Audit ###### Eliminate barriers to growth Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals. ##### Intelligence ###### Build a data-driven talent strategy Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits. ##### Advisory ###### Expert guidance that turns complexity into clarity. Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion. ## Austrian payroll FAQs ### How much does an employee cost an employer in Austria? About 30% on top of gross salary. Employer social insurance is 20.98% in 2026, or 21.23% in Vienna, and the employer also pays 1.53% to the severance fund, 3.7% to the family fund, a chamber levy of around 0.35% and 3% municipal tax. Social insurance stops at EUR 6,930 a month; the levies have no ceiling. ### What are the social insurance rates in Austria in 2026? The employer pays 20.98%: health 3.78%, pension 12.55%, unemployment 2.95%, accident 1.10%, insolvency fund 0.10% and housing 0.50%. The employee pays 18.07%. In Vienna the housing contribution is 0.75% each, making 21.23% and 18.32%. ### What is the social insurance ceiling in Austria in 2026? The maximum contribution base is EUR 6,930 a month in 2026. The 13th and 14th salaries have their own ceiling of EUR 13,860 a year. Pay above those amounts carries no social insurance, although the employer levies still apply. ### Are 13th and 14th salaries mandatory in Austria? They are not required by statute, but collective agreements provide them for almost every employee. After an allowance of EUR 620 a year, special payments within a sixth of regular annual pay are taxed at a reduced 6%. ### Is there a minimum wage in Austria? No. Austria has no statutory minimum wage. Collective agreements set minimum pay by sector and job grade for around 98% of employees, and they are updated every year. ### When are payroll taxes due in Austria? The monthly contribution report and social insurance, wage tax, the family fund contribution, the chamber levy and municipal tax are all due by the 15th of the following month. The annual L16 pay slips go to the tax office by the end of February. ### What are the income tax rates in Austria in 2026? Annual income up to EUR 13,539 is tax-free. Above that the rates are 20%, 30%, 40%, 48% and 50%, with the 48% band starting at EUR 70,365 and 50% at EUR 104,859. Income above EUR 1 million is taxed at 55%. ### Do employers pay severance in Austria? For contracts since 2003 there is no statutory severance at termination. Instead the employer pays 1.53% of gross pay every month into an employee severance fund, starting in the second month of employment. ### How much annual leave do employees get in Austria? Employees are entitled to five weeks of paid leave a year, 25 working days for a five-day week, rising to six weeks after 25 years of service. ### What notice period applies in Austria? Employer notice is six weeks in the first two years of service, two months after two years, three after five, four after 15 and five after 25 years. Since October 2021 the same periods apply to blue-collar employees, with some sector exceptions. [Couldn’t find what you were looking for?](/contact-us/) ## Looking at other markets too? We help organizations with employ and pay teams in over 180 countries. 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krone](https://topsourceworldwide.com/global-payroll/norway/) [Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/) [Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/) [Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/) [Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/global-payroll/papua-new-guinea/) [Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/) [Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/) [Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/) [Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/) [Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/) [Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/) [Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/) [Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/) [Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/) [Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/) [Saint Maarten Capital: Philipsburg Currency: Netherlands Antillean guilder (ƒ)](https://topsourceworldwide.com/global-payroll/st-maarten/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/) [Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/) [Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/) [Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/) [Taiwan Capital: Taiwan Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/) [US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwean Dollar](https://topsourceworldwide.com/global-payroll/zimbabwe/) Load more