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 just over 18%, on annual income up to approximately €83,000 per year. Employer contributions are approximately 21% on the same capped income. A variety of other small social security charges (typically between 1 and 3%) are payable by employers. Family members can be co-insured, potentially at low or no additional cost.

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 (in the case of the UK, two years is the limit) and as such, most inbounds expatriates to Austria continue to pay home country social security rather than Austrian contributions. Special rules apply to individuals working in Austria and other EEA countries (plus the UK) on a regular basis.

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. Contributions have to be paid over by the 15^th of the following month.

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). The legal retirement is age 65 for men and 60 for women (gradually increasing to 65 by 2033).

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. 

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