--- title: "Austria Tax and Payroll 2026 | ASVG, Income Tax, Lohnsteuer" description: "Austria payroll 2026: employee ASVG at 18.12%, seven income-tax bands up to 55%, wage ceiling €6,930/month, Lohnsteuer due by the 15th." canonical: https://www.teamed.global/country-hiring-guides/austria/tax-and-payroll --- Austria · Tax & payroll child Served by Teamed vetted partner-entity network in Austria # How does *Austria payroll tax* work in 2026? Austria caps social security contributions at €6,930/month. Every euro above that ceiling is free of ASVG deductions. Combined with a seven-band income-tax schedule that reaches 55% on income above EUR 1,000,000, Austria has one of the most structured payroll stacks in the EU. Last reviewed 12 June 2026 · Austria guide ![Vienna city hall illuminated at night with a wide pedestrian square in front.](/images/country-guides/austria-tax-payroll.webp) Illustration · Vienna, Austria Answer.cite this Austria runs social security under ASVG. The employee pays 18.12% on gross salary. Contributions stop once monthly earnings reach €6,930/month. The employer pays approximately 21 percent in social security charges on the same capped base. These cover health, accident, pension, and unemployment insurance under one bundled rate. Income tax has seven bands. Earnings up to €13,539 a year are taxed at 0%. The top rate is 55% on income above EUR 1,000,000. That top rate is a temporary measure running until 2029. Payroll is filed monthly. Lohnsteuer (withheld income tax) and social security must reach the Austrian tax authority by the 15th of the following month. Austria also pays 14 salaries a year: 12 monthly plus a holiday bonus and a Christmas bonus. ![Close-up of a payslip with a pen resting on it, on a wooden desk.](/images/country-guides/austria-tax-payroll-polaroid-1.webp) Every detail counted ## What does an employer pay in Austria social security? The employer pays approximately 21 percent of gross salary in ASVG social security contributions. Contributions are capped once monthly earnings reach €6,930/month. The employer rate is a bundle. It covers pension insurance, health insurance, accident insurance, unemployment insurance, and several smaller levies. There is no single statutory published rate confirmed to two decimal places. Sources indicate approximately 21 percent for regular pay. ASVG contributions apply to the gross monthly salary including regular bonuses. The special payments (holiday bonus and Christmas bonus) attract a different, lower combined contribution rate under ASVG rules. PwC Tax Summaries (2026) records the regular-pay employer bundle at approximately 20.98 percent; other sources cite 21.32 percent. The confirmed figure is approximately 21 percent. Contributions stop once the employee's monthly earnings exceed the Hoechstbeitragsgrundlage (maximum contribution ceiling) of €6,930/month. Above that ceiling, no further ASVG contributions are owed for that month. USP.gv.at · Austria social security overview Employer and employee ASVG rates are set annually under the Allgemeines Sozialversicherungsgesetz. The maximum contribution ceiling (Hoechstbeitragsgrundlage) for 2026 is **€6,930/month**. Contributions above this threshold are not owed. Source: [USP.gv.at: Income tax tariff levels (ASVG context)](https://www.usp.gv.at/en/themen/steuern-finanzen/einkommensteuer-ueberblick/weitere-informationen-est/tarifstufen.html) ### Abfertigung Neu: the severance fund contribution All employers with staff hired from January 2003 onward must pay 1.53% of each monthly salary including special payments into an employee severance fund (BV-Kasse). This is not a social security charge, but it sits on the payslip alongside ASVG deductions. The fund accumulates in the employee's name and is portable between jobs. ## What does an employee pay in Austria social security? The employee pays 18.12% of gross salary in ASVG contributions. This covers the employee share of health, pension, unemployment, and accident insurance. Contributions are capped at the same ceiling as the employer. Once monthly earnings exceed €6,930/month, no more employee ASVG is deducted for that month. | Earnings band (monthly) | Employee ASVG rate | | --- | --- | | Up to €6,930/month | 18.12% | | Above €6,930/month | 0% (ceiling reached) | The 18.12% is a composite. The pension insurance component alone is 10.25 percent. Health insurance accounts for 3.87 percent. Unemployment insurance is 3 percent. Smaller items make up the remainder. Employees do not file these components separately; the employer bundles and remits the total. The special payments (13th and 14th salary) are subject to a lower ASVG employee rate under a separate calculation. The overall effect is a slightly lower combined contribution for those two payments compared with regular monthly salary. ### No statutory national minimum wage Austria has no single national minimum wage set by law. Minimum pay is determined by more than 800 sector-level collective bargaining agreements (Kollektivvertraege). Most major sectors have set entry-level pay at EUR 1,800 to EUR 2,000 per month or above for 2026. Check the relevant CBA for the sector and region before setting pay. ## Austria income tax bands for 2026 Austria taxes income in seven bands. Earnings up to €13,539 a year attract no income tax. The top rate is 55% on income above EUR 1,000,000, running as a temporary measure until 2029. The 2026 thresholds were indexed upward from 2025 under Austria's cold-progression compensation mechanism. This is the first full year with the adjusted thresholds. | Income band (annual, 2026) | Rate | | --- | --- | | Up to €13,539 | 0% | | €13,539 to €21,992 | 20% | | €21,992 to €36,458 | 30% | | €36,458 to €70,365 | 40% | | €70,365 to €104,859 | 48% | | €104,859 to €1,000,000 | 50% | | Above €1,000,000 (temporary until 2029) | 55% | ### How the zero-rate band works Austria uses a zero-rate band rather than a deducted personal allowance. Income up to €13,539 a year is taxed at 0%. There is no taper of this threshold. The full zero-rate band applies at all income levels. Low earners may also receive a social security refund credit (SV-Rueckerstattung) under separate rules. ### The 13th and 14th salary payments Special payments (holiday bonus and Christmas bonus) benefit from a preferential income-tax calculation under the EStG. Up to a defined threshold, special payments are taxed at a flat combined rate substantially below the marginal rate that would apply if the bonuses were rolled into regular income. Employers must apply the special-payment calculation separately on the payslip for those two payment runs each year. Source: [USP.gv.at: Income tax tariff levels (EStG s.33)](https://www.usp.gv.at/en/themen/steuern-finanzen/einkommensteuer-ueberblick/weitere-informationen-est/tarifstufen.html) ## How does Austria Lohnsteuer payroll filing work? Employers withhold Lohnsteuer (wage tax) from each payslip and remit it to the Finanzamt by the 15th of the following month. Social security contributions follow the same deadline. Austria pays 14 salaries per year. That means two extra monthly filing and remittance runs for the holiday bonus and Christmas bonus payments. The Austrian payroll cycle has two layers of filing obligation each month. - **Lohnsteuer (income tax withholding)**: calculated per employee on each pay run and remitted to the Finanzamt by the 15th of the following month (Einkommensteuergesetz s.79). - **ASVG social security**: reported and paid to the Gesundheitskasse (OEGK or SVS) by the 15th of the following month for regular pay. Advance contributions are due on the 15th of the current month for large employers. The annual return (Lohnzettel) is submitted electronically to the Finanzamt after each calendar year-end. Employees receive a copy for their personal tax return. Austria operates a largely automatic employee tax-return system: many employees do not need to file if the employer's withholding is accurate. ### The 14-salary calendar The holiday bonus (Urlaubsgeld) is typically paid in June or July. The Christmas bonus (Weihnachtsgeld) is typically paid in November or December. Both are set by the relevant collective agreement. Both run through payroll in the same month they are paid and are reported on the monthly Lohnsteuer and ASVG filing for that month. Clients using Teamed's EOR service do not manage the filing calendar directly; Teamed runs both the monthly cycle and the special-payment months. 1. Collect pay data Gather salary, hours, bonuses, and any special payments due for the month. Confirm whether this run includes the holiday bonus or Christmas bonus payment. 2. Calculate gross pay Total all earnings for the period. Note which elements are regular pay and which are special payments, as they attract a different income-tax calculation. 3. Deduct employee ASVG contributions Apply the 18.12% employee rate up to the monthly ceiling of €6,930/month. No ASVG deduction applies on earnings above the ceiling. 4. Withhold Lohnsteuer Calculate income-tax withholding using the employee's tax band. Apply the preferential rate for any special payment elements in this run. 5. Calculate employer charges and BV-Kasse Calculate the employer ASVG contribution at approximately 21 percent on the capped base, plus the 1.53% Abfertigung Neu contribution on the full gross salary including special payments. 6. Remit Lohnsteuer and ASVG by the 15th Pay both Lohnsteuer and ASVG contributions to the Finanzamt and Gesundheitskasse respectively by the 15th of the following month. Submit the monthly payroll report at the same time. ## Pension and social benefit contributions in the payroll stack Austria does not have a separate auto-enrolment occupational pension scheme. Pension provision is part of the ASVG social security bundle. The pension insurance component is 12.55 percent employer and 10.25 percent employee, both included in the ASVG totals already described. The employer also pays 1.53% of every monthly salary into an Abfertigung Neu severance fund. This is mandatory for all employees hired since January 2003. The state pension (gesetzliche Pension) is administered by the Pensionsversicherungsanstalt (PVA) and financed through the ASVG contributions in the payroll stack. There is no opt-out. There is no separate qualifying age for contribution purposes; contributions start from day one of employment. ### Abfertigung Neu: the portable severance fund The employer pays 1.53% of every monthly salary, including special payments, into an employee's BV-Kasse (Betriebliche Vorsorgekasse) account. The fund is owned by the employee, not the employer. It is fully portable: when the employee changes jobs, the fund moves with them. It does not vest on a time schedule. Contributions begin from the first pay run. When employment ends, the employee can choose to take the fund as a lump sum (taxed at a preferential rate) or roll it into a future pension entitlement. Employers must register each new employee with a BV-Kasse provider at the start of employment. Teamed handles this registration as part of the standard onboarding process. ### Accident insurance Accident insurance (Unfallversicherung) is an entirely employer-funded component within the ASVG bundle. Employees pay nothing toward it. It covers work-related injuries and occupational illness. The employer component covers this automatically through the standard ASVG rate. ## How does Teamed handle Austria payroll 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. Payroll, tax, and the full Austrian employment law stack run on **one platform**. **Real HR and legal experts** handle your Austria hires, from the first offer letter through every monthly Lohnsteuer filing and the BV-Kasse registration on day one. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A contractor who converts to a permanent employee keeps their record. That same employee can **graduate** from EOR to your own Austrian entity without switching systems. Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture. EOR is the right model for a first Austria hire, **until it isn't**. Start from the Austria hiring overview. Key sources: [USP.gv.at: Income tax tariff levels](https://www.usp.gv.at/en/themen/steuern-finanzen/einkommensteuer-ueberblick/weitere-informationen-est/tarifstufen.html), [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), and [BDO Austria: Social security contributions 2026](https://www.bdo.at/en-gb/insights/people-organisation/the-expected-social-security-contributions-2026). ## Frequently asked questions What does an employer pay in social security in Austria in 2026? The employer pays approximately 21 percent in ASVG social security contributions on each employee's gross salary. Contributions are capped once monthly earnings reach the Hoechstbeitragsgrundlage of €6,930/month. The employer also pays 1.53% into a portable employee severance fund (BV-Kasse) on every monthly salary including special payments. What social security does an employee pay in Austria? The employee pays 18.12% of gross salary in ASVG contributions. This covers the employee share of health, pension, unemployment, and accident insurance. Contributions stop once monthly pay exceeds €6,930/month. There is no employee contribution to the Abfertigung Neu severance fund; that is an employer-only obligation. What are the income tax bands in Austria in 2026? Austria has seven income-tax bands in 2026. Income up to €13,539 a year is taxed at 0%. The rate rises through 20%, 30%, 40%, 48%, and 50% to a top rate of 55% on income above EUR 1,000,000. The top rate is temporary and runs until 2029. When must Austria payroll taxes be paid? Lohnsteuer (withheld income tax) and ASVG social security contributions must both be remitted by the 15th of the month following the pay run. Austria requires 14 salary payments per year, so there are 14 monthly filing cycles, including the months when holiday and Christmas bonuses are paid. Does Austria have a national minimum wage? No. Austria has no statutory national minimum wage set by law. Minimum pay is determined by sector-level collective bargaining agreements (Kollektivvertraege). Most major sectors have set entry-level pay at EUR 1,800 to EUR 2,000 per month or above for 2026. The applicable collective agreement depends on the industry and employer size. Always check the relevant CBA before making a job offer. Teamed Legal Operations The contribution ceiling is Austria's biggest payroll surprise for international employers. Once a senior employee's monthly salary exceeds the Hoechstbeitragsgrundlage, social security simply stops accruing for that month. You don't overpay. But you do need to track the ceiling accurately for every payroll run, especially in months where the holiday or Christmas bonus pushes total pay above it. A note from Tom Price-Daniel Austria pays 14 salaries a year and caps social security at €6,930/month every month. The income-tax schedule runs seven bands. The zero-rate band sits at €13,539 a year. The Abfertigung Neu fund starts accumulating on day one. Get the structure right before the first payslip goes out. Tom Price-Daniel · Co-founder, Teamed ## Related Austria guides - Hiring in Austria, overviewparent - [Austria termination and severance](/country-hiring-guides/austria/termination-and-severance)sibling - [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 USP.gv.at, the Finanzamt, and the OEGK for Austria, or speak to a qualified professional, before relying on any specific framework. The employer ASVG rate cited here is approximate. The exact rate varies by employer category and is set annually under the ASVG. The top income-tax rate of 55 percent is a temporary measure running until 2029, after which it reverts to 50 percent. Minimum wages are governed by sector-level collective bargaining agreements, not statute.