Payments falling below the minor employment threshold (Geringfügigkeitsgrenze) lead to limited social security liabilities. In such a case, employees are only required to have accident insurance.
If the employer has a business residence in Austria, the employer shall register the employee at the authorized health insurance office and pay the mandated social security contributions of both employer and employee. If the employer does not have a business residence in Austria but in another EEA (European Economic Area) country, the employer can form an agreement with the employee to transfer these duties and payments onto the employee.
Employers from non-EEA countries and without business residence in Austria are exempt from employee registration duties and payments of employer and employee contributions. Employers with business residence in Austria shall register their employees and pay both employer and employee contributions to social security. This provision applies only to employees and independent service providers. The contribution percentage rate depends on the form of employment.
In contrast to employees, self-employed individuals shall enroll and cancel their own social security and health insurance (with Sozialversicherung der Gewerblichen Wirtschaft) and pay their own premiums. When insurance coverage is tied to a formal prerequisite (e.g. a trade license), insurance begins on the day when the trade license is obtained and ends on the last day of the month in which the trade license is surrendered.
Nationals from EEA member states and Switzerland enjoy insurance coverage in Austria in accordance with EU Regulation 883/2004 on the coordination of social security systems. Individuals from the United States and Canada are advised to review their health insurance coverage for a work visit to Austria and may consider purchasing additional insurance coverage, if necessary. Costs of medical care while in Austria must be paid directly to the Austrian provider when services are rendered and will be partly or entirely refunded in the home country, depending on the insurance policy.
Overview of all dues for employees:
SV-DGA (social security – employer contribution): 21.23%
MV (employee pension fund contribution): 1.53%
DB (employer contribution to family compensation fund): 3.9%
DZ (employer contribution surcharge): below 0.5%, varies according to federal province
Communal tax: 3% (if employer has a business residence in Austria)
Subway contribution: only for employees in Vienna, flat fee of EUR 2.00 per employee and work week started