Summary
Austria has a comprehensive social security system which provides a range of old age, invalidity, sickness, unemployment and other social benefits, including family allowances and income guarantees. Entitlement to benefits generally derives from and individual’s contribution history, although some benefits arise due to residence in Austria.
Details
Contributions
Employee contributions are around 18%, but only on annual income up to approximately €70,000 per year. Employer contributions are approx. 21% on the same capped income.
Treaties
Austria has social security agreements with all European Economic Area countries and around 20 non EEA countries, mainly in Europe but including the US, India, Canada and Australia. These agreements determine which country has the right the levy social security contributions, has the obligation to provide benefits, and prevent social security being levied twice on the same income.
The standard maximum term for most of these agreements is five years and as such, most inbounds expatriates to Austria therefore continue to pay home country social security rather than Austrian contributions.
Exemptions
Given the comparatively low level of the income cap for social security contributions, there are few social security exemptions which will benefit expatriate employees working in Austria.
Administration
Contributions (both employee and employer) to the four main branches of Austrian social security (Health, Accident, Pension and Unemployment) are all administered by the employer through payroll.
Benefits
The various benefits available under the Austrian social security system are administered by separate national institutions. The Austrian state pension is the most significant benefit, and this is calculated by reference to the number of years of contributions in Austria (at least 15 years of contributions in Austrian or countries with which Austria has a social security agreement are required to receive some benefit).
Other
Child benefits in Austria are based on habitual residence rather than social security contributions, and all parents who are entitled to child benefit are also entitled to child tax credits.
Social security insights are intended to provide quick and straightforward insights into social security regimes. Always seek professional advice based on actual circumstances before acting.
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