Austria HR and payroll glossary

DB Employer contribution to the Family Burden Equalisation Fund

Dienstgeberbeitrag zum Familienlastenausgleichsfonds

An employer-only payroll levy of 3.7% of all pay, including the 13th and 14th salaries, with no ceiling. It funds family benefits and is paid to the tax office with the wage tax by the 15th of the following month. Source

DZ Surcharge to the employer contribution (Chamber levy 2)

Zuschlag zum Dienstgeberbeitrag (Kammerumlage 2)

A surcharge on the DB base paid by members of the Economic Chamber, which varies by state: 0.36% in Vienna for 2026. It is paid to the tax office with the other payroll levies. Source

Kommunalsteuer Municipal payroll tax

An employer-only tax of 3% of all pay, uncapped, paid monthly to the municipality where the business is located. Source

Lohnsteuer Wage tax

Income tax withheld from regular monthly pay. The 2026 tariff is 0% to €13,539, then 20%, 30%, 40%, 48% (above €70,365) and 50% above €104,859, with 55% only above €1 million. The 13th and 14th salaries are taxed separately at lower rates. Source

U-Bahn-Steuer Vienna underground tax (employer levy)

Dienstgeberabgabe der Gemeinde Wien

A small Vienna-only employer levy of €2 per employee for each started week, about €104 a year. Employees aged 55 or over are currently exempt. Source

Verkehrsabsetzbetrag Traffic tax credit

A tax credit every employee receives automatically through payroll: €496 a year in 2026. It is deducted from the tax, not from income. Source

Abfertigung neu Severance fund system (staff provision fund)

Abfertigung neu / Betriebliche Vorsorgekasse (BV-Kasse)

For employment begun since 2003 the employer pays 1.53% of all pay, including special payments, into a staff provision fund instead of paying severance. The employee can draw the balance on dismissal after 3 years of contributions, or keep it invested. Source

AK-Umlage Chamber of Labour levy

Arbeiterkammerumlage

A 0.50% employee-only levy on regular monthly pay that funds the Chamber of Labour, to which all employees belong by law. It is not charged on the 13th and 14th salaries. Source

Höchstbeitragsgrundlage Maximum contribution base

The pay ceiling for social insurance: €6,930 a month in 2026 on regular pay, with a separate annual ceiling of €13,860 for the 13th and 14th salaries. Pay above it carries no employee social insurance. Source

Sozialversicherung (SV) Social insurance contributions

Sozialversicherungsbeiträge

Health, pension and unemployment insurance plus smaller levies, collected as one contribution. For a salaried employee in Vienna in 2026 the employee pays 18.32% and the employer 21.23% (including accident and insolvency insurance) of monthly pay up to the ceiling. Source

Wohnbauförderungsbeitrag Housing promotion contribution

A regional levy collected with social insurance. Vienna raised it to 0.75% each for employee and employer from 1 January 2026; the other states charge 0.5% each. It is not charged on the 13th and 14th salaries. Source

Sonderzahlungen 13th and 14th salaries (holiday pay and Christmas pay)

Sonderzahlungen (Urlaubszuschuss und Weihnachtsremuneration)

Collective agreements give almost all employees a 13th salary (holiday pay) and a 14th (Christmas pay), so Austrian annual pay is quoted as 14 monthly salaries. They carry lower social insurance (17.07% employee) and are taxed at a flat 6% after a €620 exemption, up to set limits. Source

Abfertigung alt Old statutory severance

Employees whose contracts began before 2003 may still be under the old system, in which the employer owes 2 to 12 months' pay after 3 to 25 years' service; the claim is generally lost on resignation. Check this when taking over long-serving staff. Source

Kollektivvertrag (KV) Collective agreement

Kollektivvertrag

Sector agreements negotiated between the chambers and unions that cover nearly all private employees. They set minimum salaries by job grade, the 13th and 14th salaries and often a 38.5-hour week, and can change notice rules. Source

Kündigungsanfechtung Challenge to a dismissal (socially unjustified)

Anfechtung wegen Sozialwidrigkeit

The employer may give notice without a reason but must first inform the works council, if there is one. After 6 months' service the employee can ask the labour court to set the dismissal aside as socially unjustified (sozialwidrig) or for a prohibited motive. Source

Kündigungsfrist Notice period

Employer notice is 6 weeks in the first 2 years, then 2 months, 3 months after 5 years, 4 after 15 and 5 after 25, to the end of a calendar quarter unless the contract allows the 15th or last day of a month. Employees give 1 month to the end of a month. Source

Probezeit Probation period

At most 1 month. During it either side may end the employment at any time without notice or reason. Source

ÖGK Austrian Health Insurance Fund

Österreichische Gesundheitskasse

The fund that collects social insurance for private-sector employees. Employers register each employee with the ÖGK before work starts and send a monthly contribution-base report with the payment. Source