Austria · Salary
Austria: why you get 14 salaries and how they are taxed
In Austria almost every employee is paid 14 times a year: 12 regular salaries plus a holiday payment in summer and a Christmas payment in winter. These two extra payments are taxed at a low flat rate of 6%, which makes Austrian pay more tax-efficient than the headline rates suggest.
Where the 14 salaries come from
The 13th and 14th payments (Urlaubszuschuss and Weihnachtsremuneration) are not set by law but by collective agreements, which cover nearly all Austrian jobs. Annual salaries in Austria are therefore quoted as gross per year divided by 14. A job paying "€3,500 gross a month" is a €49,000 job.
How the extra payments are taxed
- Up to one-sixth of your regular annual pay counts as "special payments" (sonstige Bezüge).
- The first €620 is tax-free, then the rate is 6% up to €25,000 of special payments, rising above that.
- Social insurance on special payments is slightly lower, at about 17.07% instead of 18.07%.
Your regular 12 salaries are taxed on the normal scale: 0% up to €13,539, then 20%, 30%, 40%, 48%, 50% and 55%.
Net pay at three salaries
| €40,000 | €50,000 | €70,000 | |
|---|---|---|---|
| Social insurance | €7,171 | €8,964 | €12,549 |
| Income tax on regular pay | €2,984 | €5,091 | €10,562 |
| Tax on 13th and 14th salary | €247 | €318 | €460 |
| Net per year | €29,598 | €35,627 | €46,429 |
| Net per payment (14) | €2,114 | €2,545 | €3,316 |
Single, no children, 2026 rules. Includes the employee tax credit and a flat €132 for work costs. Commuter allowances and family bonuses (Familienbonus Plus) can lower the tax further.
On €50,000 the two extra payments, about €7,140 together, cost only about €318 in tax. The same amount spread across the 12 regular salaries would be taxed at 30% to 40%.
What to check in an Austrian offer
- Monthly or annual? Multiply a monthly figure by 14, not 12.
- Overpayment (Überzahlung). Collective agreements set a minimum; your offer may be above it. The job ad must state the minimum and whether more is possible.
- All-in contracts include overtime in the salary. Check how many hours that covers.
- Tax refund. You can file a return (Arbeitnehmerveranlagung) up to five years back. Many people get money back for work costs, donations or if they started mid-year.
Calculate your Austrian net salary →
Sources
This guide is general information based on the tax rules we could verify for 2026, not tax or financial advice. Rules change and personal situations differ, so check with the tax authority or a qualified adviser before you act. Spotted a mistake? Email contact@expatcents.com.