Social security contributions in detail
Social security contributions are due on all employees' earnings over a marginal level. This level is determined each year and in 2019 is EUR 446.81 per month. Social security contributions for white-collar employees are due at the following rates over employees' salaries (the figures for blue-collar employees differ slightly):
Retirement insurance: the employer pays 12.55% and the employee pays 10.25%.
Health insurance: the employer pays 3.78% and the employee pays 3.87%.
Accident insurance: the employer pays 1.20% and the employee pays nothing.
Unemployment insurance: the employer and employee pay 3% each. If the employee earns less than EUR 1,987 per month, a percentage varying between 0% and 2% is payable.
Fee for housing subsidy: the employer and employee pay 0.5% each.
Insolvency contribution: the employer pays 0.35% and the employee pays nothing.
Workers' chamber contribution: the employee pays 0.5% and the employer pays nothing.
Staff provision fund contribution: the employer pays 1.53% and the employee pays nothing.
The basis for calculation is capped at EUR 5,220 per month for 2019.
In Austria, income tax is at progressive average rates, including those set out below. For income of:
- up to EUR 11,000, no tax is payable;
- between EUR 11,000 and EUR 18,000, the tax is 25%;
- between EUR 18,000 and EUR 31,000 the tax rate is 35%;
- between EUR 31,000 and EUR 60,000 the tax rate is 42%;
- between EUR 60,000 and EUR 90,000, the tax rate is 48%;
- between EUR 90,000 and 1,000,000, the tax rate is 50%;
- over 1,000,000, the tax rate is 55%.
Author: Schima Mayer Starlinger
Date: April 2020
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.