Reduction of ancillary wage costs in Austria
- AKTIVadmin
- Mar 14, 2024
- 1 min read
Lohnnebenkosten" refers to the costs that arise for employers in addition to the gross salary paid to employees.
What are considered as Lohnnebenkosten in Austria?
Holiday and Christmas bonuses (13th and 14th salary/wages)
Paid sick leave
Paid vacation
Further education
Company pension schemes (severance pay)
Insolvency wage protection (wage continuation for employees in case of company insolvency)
Pension insurance
Unemployment insurance
Accident insurance
Health insurance
Family allowances and childcare allowance
Housing support (housing allowance)
Free school transportation and school book scheme
Municipal tax for municipalities (main financing basis for municipalities, used among other things to finance kindergartens, buses, etc.)
How high are the Lohnnebenkosten for employers?
Depending on the industry, employers pay around 28% of the gross salary of their employees additionally in holiday and Christmas bonuses (13th and 14th salary/wages), paid vacation, and sick leave. A significant contribution goes into the state's social safety net.
What do I get from Lohnnebenkosten?
Two-thirds go directly into your account: in the form of wages or salary during holidays, public holidays, and sick leave, as well as holiday and Christmas bonuses.
One-third goes into social contributions for all:
Pensions, unemployment benefits, health insurance, accident insurance, healthcare system, municipal tax, family allowances, childcare allowance, free school transportation and school books, maintenance advances, maternity allowance, pension contributions for child-raising periods, and more.
Link tip to the GPA union