Austria Employee Cost Calculator
See the true cost of employing someone in Austria — gross salary plus an estimated 28.7% in employer social contributions.
Cost of an employee in Austria
Employer contribution breakdown
| Contribution | Rate | Annual amount |
|---|---|---|
| Pension insurance | 12.55% | — |
| Health insurance | 3.78% | — |
| Unemployment insurance | 2.95% | — |
| Accident insurance | 1.20% | — |
| Family Burden Fund (DB) + municipal tax | 6.70% | — |
| Other (housing, insolvency, severance fund) | 1.50% | — |
| Total employer contributions | 28.7% | — |
Employer costs in Austria
In Austria, total statutory employer cost is roughly 28–29% on top of gross salary — about 21% in social-security contributions plus the Family Burden Fund (3.7%), municipal tax (3%) and smaller levies.
- Employer social security is about 21% (pension 12.55%, health ~3.78%, unemployment 2.95%, accident ~1.2%).
- Employers also pay the Family Burden Equalisation Fund (DB) 3.7% and municipal tax (Kommunalsteuer) 3% on payroll.
- Smaller mandatory levies (housing fund, insolvency fund, the 1.53% company severance-fund contribution) add roughly another 1.5%.
Most social-security contributions are capped at the monthly maximum base, so the effective rate falls for higher salaries; the DB and municipal tax are not capped. Use it for budgeting, not payroll.
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Frequently asked questions
On top of gross salary, an employer pays statutory social-security contributions — around 28.7% in Austria. The total employer cost is the gross salary plus those employer contributions. It does not include optional benefits, equipment, or recruitment costs.
Employers must pay mandatory social-security and payroll charges on top of the gross salary the employee sees. These fund pensions, healthcare, unemployment, and similar schemes, and they are a real, recurring cost of employment.
In most countries several contributions are calculated only up to a maximum income base, so the effective employer rate is lower for high salaries. Treat this calculator as a budgeting estimate rather than exact payroll.
Many companies use an Employer of Record (EOR) to hire compliantly in Austria without opening a local subsidiary. The EOR is the legal employer and handles payroll, contributions, and compliance for a monthly fee.