--- title: "Austria Employer Cost Breakdown 2026 | Social Security" description: "Austria employer cost 2026: 25 days paid leave, 13 public holidays, and a 14-salary year. Line-by-line breakdown of what an Austria hire really costs." canonical: https://www.teamed.global/country-hiring-guides/austria/cost-breakdown --- Austria · Cost breakdown child Served by Teamed vetted partner-entity network in Austria # How much does it really cost to *hire in Austria* in 2026? Austria pays salaries 14 times a year. A EUR 60,000 annual salary means two extra months of pay in June and November. Add social security on top and the real cost lands well above the number on the contract. Last reviewed 13 June 2026 · Austria guide ![Vienna city centre at golden hour, with ornate Habsburg-era buildings lining a broad avenue and the Ringstrasse trams in motion.](/images/country-guides/austria-cost-breakdown.webp) Illustration · Vienna, Austria Answer.cite this Austria pays employees 14 times a year. Two of those payments are special bonus payments. You must budget for all 14 at the start. On top of salary, employers pay social security contributions. The contribution base is capped at €6,930/month. Employees also pay 18.12% on the same capped base. Every employee gets 25 days days of paid leave per year, rising to 30 days after 25 years of service. There are 13 public holidays. These are set by law. They apply to every hire. ![A wooden desk in a Vienna office with an open notebook of payroll figures, a cup of coffee, and a small Austrian flag on a pen stand.](/images/country-guides/austria-cost-breakdown-polaroid-1.webp) Adding it up ## The headline: what a EUR 60,000 Austria hire actually costs Start with the annual salary. In Austria that number is paid in 14 instalments, not 12. Two of those are special payments at roughly one monthly salary each, paid in June and December. The illustrative table below shows the main cost lines on a EUR 60,000 annual salary. Totals are computed from verified rates and are labelled illustrative. They are not statutory figures. The components are public, the rates are set by law, and there is no negotiation on the structure. The illustrative example below uses a EUR 60,000 gross annual salary. | Line | Illustrative cost on EUR 60,000 salary | Source | | --- | --- | --- | | Gross annual salary (12 monthly payments) | EUR 60,000 | Contract | | Holiday bonus (Urlaubsgeld, approx. one monthly salary, paid June) | EUR 5,000 (illustrative, 1/12 of annual) | Collective agreements (Kollektivvertrag) | | Christmas bonus (Weihnachtsgeld, approx. one monthly salary, paid November) | EUR 5,000 (illustrative, 1/12 of annual) | Collective agreements (Kollektivvertrag) | | Employer social security contributions (on regular pay, estimated rate applied to capped base; see note below) | EUR 11,880 (illustrative, estimated) | [BDO Austria social security 2026](https://www.bdo.at/en-gb/insights/people-organisation/the-expected-social-security-contributions-2026) | | Abfertigung Neu (BV fund contribution at 1.53% of monthly salary including special payments) | EUR 1,071 (illustrative) | [USP.gv.at, Abfertigung Neu](https://www.usp.gv.at/en/themen/mitarbeiter-und-gesundheit/beendigung-des-arbeitsverhaeltnisses/weitere-informationen-beendigung/abfertigung-neu-fuer-arbeitnehmer-und-freie-dienstnehmer.html) | | Statutory leave: 25 days paid leave days built into salary | Included in salary | Urlaubsgesetz s.2 | | Sick pay: 6 weeks full pay then 4 weeks half pay per illness per year | Reserve only; actual cost depends on absences | Entgeltfortzahlungsgesetz (EFZG) | | **Total illustrative employer cost (excl. Teamed fee)** | **EUR 82,950 (illustrative)** | **~119% of base salary** | These figures are illustrative. The social security employer rate is not confirmed as a precise figure by an official primary source for 2026. The table uses an estimated rate consistent with published advisory guidance. The Abfertigung Neu figure is computed from the verified 1.53% rate applied to EUR 70,000 total pay (EUR 60,000 regular + EUR 10,000 special payments). All figures will vary with actual pay, sector collective agreement, and chosen benefits. Add Teamed from $599 per employee per month and the total rises further. Use the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to run your own salary figures. 1. Confirm the annual salary Agree the gross annual salary with the candidate. Remember this covers regular monthly pay only. Special payments come on top under the collective agreement. 2. Plan for the 14th payment Budget for all 14 salary payments from day one. Spread the two special payments across your monthly cost model so June and December are not surprises. 3. Add social security on all payments Apply employer social security contributions to both regular monthly pay and the special payments. Contributions stop once monthly earnings reach the capped base. 4. Include the Abfertigung Neu contribution Add 1.53% of every payment to the portable BV fund. This applies to regular and special payments alike and starts from the first month. 5. Check the collective agreement for the role Confirm the applicable Kollektivvertrag for the employee's sector and role. It sets the minimum salary, the exact special-payment structure, and any sector-specific benefits above the statutory floor. ## The 14-salary-payment year: the cost no one expects Austria's 14-payment system is not a bonus. It is a legal and contractual requirement for most employees covered by a collective agreement. A salary quoted as EUR 60,000 a year means 14 payments. Each regular month gets EUR 5,000. Then two extra EUR 5,000 payments land in June and November. You budget for all of them. The two extra payments are known as the Urlaubsgeld (holiday bonus, typically June) and the Weihnachtsgeld (Christmas bonus, typically November or December). They are set by the relevant collective agreement (Kollektivvertrag) for the sector. Almost every white-collar employee in Austria is covered by a Kollektivvertrag. The payments are not discretionary for most roles. ### Tax treatment of the special payments The special payments receive a favourable tax treatment under Austrian law. They are taxed at a combined rate well below the standard income tax rate that applies to regular monthly pay. This reduces the employee's net cost but does not reduce the employer's gross liability. The employer pays the full gross amount plus social security contributions on all 14 payments. USP.gv.at · Abfertigung Neu, BMSVG contributions Every month, employers contribute 1.53% of the monthly salary, including special payments, to the employee's BV fund (Betriebliche Vorsorgekasse). This applies from the first month of employment. The fund is portable and travels with the employee when they change jobs. Source: [USP.gv.at, Abfertigung Neu for employees](https://www.usp.gv.at/en/themen/mitarbeiter-und-gesundheit/beendigung-des-arbeitsverhaeltnisses/weitere-informationen-beendigung/abfertigung-neu-fuer-arbeitnehmer-und-freie-dienstnehmer.html) ### Budget planning for the two special months If you manage headcount costs on a monthly basis, spread the special payments across all twelve months in your budget model. A EUR 70,000-a-year employee (including special payments) costs roughly EUR 5,833 a month on average. Do not budget EUR 5,000 and treat June and November as surprises. ### The Abfertigung Neu contribution On top of the gross salary and special payments, employers contribute 1.53% of every payment to a portable severance fund. This applies to regular and special payments alike. The fund accrues over the employment relationship and is paid out when the employee leaves, under certain conditions. It is not an optional benefit. It is required by law under the [BMSVG](https://www.usp.gv.at/en/themen/mitarbeiter-und-gesundheit/beendigung-des-arbeitsverhaeltnisses/weitere-informationen-beendigung/abfertigung-neu-fuer-arbeitnehmer-und-freie-dienstnehmer.html) for all employees hired after 2003. ## Social security contributions: the capped charge Both employer and employee pay social security contributions in Austria. The employee's exact rate is 18.12% of gross pay. The contribution base is capped. Once monthly earnings reach €6,930/month, social security contributions stop for that month. High earners cost less in proportional terms once they pass the ceiling. Austrian social security is administered under the ASVG (Allgemeines Sozialversicherungsgesetz). It covers pension insurance, health insurance, accident insurance, and unemployment insurance. Both employer and employee contribute. The employee pays 18.12% of gross earnings. The employer pays an additional amount on the same base. ### The employer rate The employer social security contribution rate for 2026 is approximately 21% of gross pay, based on published advisory guidance. The precise rate as a single verified figure is not confirmed by an official primary source in the current data. Budget conservatively using the approximate figure. For accurate payroll setup, Teamed confirms the current component rates directly with the Austrian Health Insurance Fund (OeGK) during onboarding. ### The monthly contribution ceiling Social security contributions apply only up to the monthly maximum base of €6,930/month. Earnings above this ceiling are not subject to the social security charge. For a regular monthly salary of €6,930/month or more, the employer social security cost is fixed at a flat amount regardless of further salary increases. This makes the effective social security rate fall as salaries rise above the ceiling. ### Special payments and social security The holiday bonus and Christmas bonus are also subject to social security contributions, but at a reduced rate for both employer and employee. The combined rate on special payments is lower than on regular monthly pay. This is a feature of the Austrian ASVG. Teamed handles the split calculation as part of the standard payroll run. ### No statutory national minimum wage Austria has no single national minimum wage set by law. Wages are set by sector-level collective agreements. Most sectors now exceed a EUR 1,700 a month floor under an agreement by the social partners, and many sectors set higher entry rates. The relevant Kollektivvertrag for the employee's sector determines the minimum pay for each role. Teamed confirms the applicable Kollektivvertrag during the hiring process. ## Statutory leave: the full picture Every Austria employee gets 25 days days of paid annual leave per year. After 25 years of service this rises to 30 days days. There are 13 public holidays in Austria. These are separate from annual leave. Employees who work on a public holiday get additional pay or time off. ### Annual leave entitlement The 25 days day entitlement is set by the Urlaubsgesetz s.2. It is calculated on a working-day basis. A five-day-week employee gets 25 days working days off per year. After 25 years of continuous service the entitlement rises to 30 days working days per year. The leave year runs with the employment year, not the calendar year. ### Public holidays Austria has 13 public holidays set by the Arbeitsruhegesetz s.7. These are not counted against annual leave. They include national holidays such as National Day (26 October) and religious holidays with wide recognition. Most offices and businesses close on public holidays. Employees who must work on a public holiday are entitled to a substitute day off or an additional payment. ### Sick pay When an employee is ill, Austrian law requires the employer to continue paying full salary for 6 weeks. After that, the employer pays half salary for a further 4 weeks. These minimums apply in the first year of service. The obligation increases with tenure, up to twelve weeks of full pay for long-serving employees. After the employer's obligation ends, the employee receives illness benefit from the health insurance fund. Budget the full-pay period as a real cost that will occur. Most employees take at least one sick period per year. ### Maternity and parental leave Maternity protection under the Mutterschutzgesetz runs for 16 weeks in total. This covers 16 weeks split across the period before and after birth. During this protection period the state pays Wochengeld at 100% of the employee's average recent earnings. The employer does not pay salary during the Mutterschutz period once the state benefit starts. After the Mutterschutz period, either parent can take parental leave (Elternkarenz) for up to 24 months in total until the child reaches that age. During Elternkarenz the employer is not required to pay salary. The employee receives state childcare benefit instead. The job is protected during the leave period. ## Income tax: the employee's side of the cost picture Austria uses a seven-band income tax rate that runs from 0% on the lowest earnings to 55% on income above EUR 1,000,000. The top 55% rate is a temporary solidarity addition, in place until the end of 2029. After that the top rate returns to 50%. Employers withhold income tax (Lohnsteuer) from each monthly payment and remit it to the tax authority by the 15 daysth of the following month. This is the employer's obligation. The employee is credited with the tax withheld on their annual tax return. | Band | Taxable income (EUR/year) | Rate | | --- | --- | --- | | Band 1 | Up to €13,539/year | 0% | | Band 2 | €13,539/year to €21,992/year | 20% | | Band 3 | €21,992/year to €36,458/year | 30% | | Band 4 | €36,458/year to €70,365/year | 40% | | Band 5 | €70,365/year to €104,859/year | 48% | | Band 6 | €104,859/year to €1,000,000/year | 50% | | Band 7 (temporary to 2029) | Above €1,000,000/year | 55% | The zero-rate band means income up to €13,539/year is tax-free. This 2026 threshold was adjusted upward from 2025 under Austria's cold-progression relief mechanism, which indexes bands to inflation each year. ### Why the tax table matters to the employer cost model Austria's income tax is the employee's cost, not the employer's. But competitive net pay is what attracts candidates. A EUR 60,000 gross salary produces a very different net figure than the same number in a lower-tax country. When you are competing for talent in Vienna against local employers, knowing the employee's take-home helps you frame the offer correctly. Teamed can model net pay at any gross salary point as part of the hiring consultation. Lohnsteuer must be remitted to the tax authority by the 15 daysth of the following month. Late remittance attracts penalties. Teamed manages this filing as part of the monthly payroll service. ## How Teamed handles Austria employment costs for you Teamed becomes your legal [employer of record](/lp/employer-of-record) in Austria for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. The 14-salary structure, Abfertigung Neu contributions, social security, and Austrian Lohnsteuer filing all run on **one platform**. **Real HR and legal experts** handle your Austria hires from the first offer letter through every Lohnsteuer remittance and annual reconciliation. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Every employer cost **passes through at cost, itemised** on every invoice. You see the social security line, the Abfertigung Neu line, and the special-payment months. Nothing is hidden inside the management fee. The correct collective agreement (Kollektivvertrag) for your employee's sector is confirmed at onboarding, not after the first payroll dispute. EOR payroll, contractor onboarding, and entity setup all live on **one platform**. An Austria contractor who converts to payroll keeps their record. That same employee can **graduate** from EOR to your own Austrian entity without switching systems. EOR is the right structure for a first Austria hire, **until it isn't**. Teamed does not lock you in. Start from the Austria hiring overview or run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture. ## Frequently asked questions Why does Austria pay salaries 14 times a year? Austrian collective agreements (Kollektivvertraege) require employers to pay a holiday bonus (Urlaubsgeld) and a Christmas bonus (Weihnachtsgeld) in addition to the twelve monthly salary payments. Together these make 14 payments per year. Almost all white-collar employees are covered by a Kollektivvertrag. The two extra payments are not bonuses in the discretionary sense. They are a contractual and legal requirement for most roles. Budget for all 14 at the start of every hire. What is the Abfertigung Neu and what does it cost the employer? Abfertigung Neu is Austria's portable severance scheme for employees hired from 2003 onward. Every month the employer contributes 1.53% of the gross monthly salary, including the special bonus payments, to the employee's personal BV fund (Betriebliche Vorsorgekasse). The fund is managed by a regulated provider and belongs to the employee. It follows them when they change jobs. The contribution applies from the first month of employment and has no qualifying period. How much paid leave does an Austrian employee get? Every Austrian employee is entitled to 25 days days of paid annual leave per year under the Urlaubsgesetz. After 25 years of continuous service this rises to 30 days days. Austria also has 13 public holidays, which are separate from the annual leave entitlement. In total a full-time employee gets 38 days of paid time off per year at the standard leave level. What does statutory sick pay cost an employer in Austria? Austrian employers must pay full salary for 6 weeks when an employee is ill. After that, half salary applies for a further 4 weeks. These minimum periods apply in the first year of service and increase with tenure, up to twelve weeks of full pay for long-serving employees. After the employer's obligation ends, the health insurance fund pays illness benefit directly to the employee. Does Austria have a national minimum wage? No. Austria has no statutory national minimum wage set by law. Minimum pay is set by sector-level collective agreements (Kollektivvertraege). Most major sectors now meet or exceed a EUR 1,700 a month floor following an agreement by Austria's social partners. The exact minimum for any given role depends on the sector Kollektivvertrag and the job classification within it. Teamed confirms the applicable Kollektivvertrag and minimum rate during the hiring setup. Teamed Legal Operations The most common Austria budgeting mistake is treating the quoted salary as the total cost. Austria pays 14 times a year. That is two extra months of gross salary, plus social security on all of them, plus the Abfertigung Neu contribution from month one. Identify the applicable collective agreement before you send the offer, not after the first payroll run. A note from Tom Price-Daniel Austria's 14-salary year catches most first-time hirers off guard. Two extra payments in June and December are built into the law. Add social security capped at €6,930/month and a 1.53% portable severance fund on every euro you pay. Know the full picture before you quote. Austria rewards employers who plan it right from the first offer. Tom Price-Daniel · Co-founder, Teamed ## Related Austria guides - Hiring in Austria, overviewparent - [Austria tax and payroll](/country-hiring-guides/austria/tax-and-payroll)sibling - [Austria termination and severance](/country-hiring-guides/austria/termination-and-severance)sibling - [Germany employer cost breakdown](/country-hiring-guides/germany/cost-breakdown)neighbour - [Switzerland employer cost breakdown](/country-hiring-guides/switzerland/cost-breakdown)neighbour - [Employer of Record overview](/lp/employer-of-record)core - [Pricing, Zero FX Fixed](/pricing)core - [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Unternehmensserviceportal (USP.gv.at), the Austrian Health Insurance Fund (OeGK), and the relevant Arbeiterkammer before relying on any specific figure. The employer social security contribution rate in this guide is an approximation based on advisory sources; the precise figure should be confirmed with OeGK or a qualified Austrian payroll adviser. Worked examples are illustrative only and computed from verified or estimated statutory rates. They are not guaranteed outcomes. Sector collective agreements (Kollektivvertraege) can set higher minimums than the statutory floors. No statutory national minimum wage applies in Austria; the applicable Kollektivvertrag governs minimum pay.