Remuneration

 

Employees receive remuneration for the services specified in their contract of employment. Remuneration encompasses, for example, wages, salaries and apprenticeship income (i.e. remuneration for apprentices).

The amount of remuneration is governed by laws, collective agreements and/or internal works agreements; it also depends on individual factors such as age, qualifications, working hours, assignment to duties (position), length of service, etc.

 

Collective agreements are written agreements that govern working hours, working conditions and remuneration, for example. They are negotiated between workers’ representatives (e.g. trade unions) and employers’ representatives (e.g. the Chamber of Commerce).

Works agreements are written agreements concluded between employers and the works council.

 

There are agreements on minimum wages in the various sectors. Minimum wages are usually negotiated in collective agreements by trade unions and company representatives for the various sectors. There is no statutory minimum wage in Austria.

In most cases wages, salaries and apprenticeship income are transferred to a salary/current account. They are paid on the last day of the month or on the first day of the following working month. In some cases workers receive their wages weekly by cheque or in cash.

Wages and salaries, if governed by a collective agreement and/or works agreement, are paid to employees 14 times a year: 12 monthly salary payments plus 1 month’s pay in the form of a Christmas bonus and 1 month’s holiday bonus (known as special payments).

 

Tax, social security contributions, the contribution to the Chamber of Labour and other deductions (e.g. union membership fees) are deducted from your gross wage by your employer. Employers transfer these amounts to tax offices, social security institutions, the Chamber of Labour, etc.

You can use the gross-net calculator to work out how much money you have at your disposal after deducting taxes, etc.:

https://www.arbeiterkammer.at/beratung/steuerundeinkommen/lohnundgehalt/index.html

 

Employees usually receive a written statement of remuneration every month, known as a payslip. The payslip contains a precise breakdown of deductions (taxes, social insurance, legally prescribed and voluntary contributions, etc.).

 

Freelance contractors are paid for the duration of their work assignment. In the absence of any specific agreement, they are not entitled to special payments. They are, however, entitled to a statement of terms and conditions (Dienstzettel) (see chapter on Employment Contracts), in the absence of a written contract. If their contract continues for a longer period, they receive their remuneration monthly. Freelance contractors must make their own arrangements for payment of taxes. Employers are responsible for transferring social security contributions to insurance institutions (pension insurance, accident insurance, unemployment insurance, etc.) and the Austrian Health Insurance Fund. Freelance contractors are members of the Chamber of Labour and pay a contribution to it (the Chamber of Labour levy).

 

For contractors, it is the result of the service (the work assignment) that determines the remuneration. Remuneration is normally paid after the contract has been fulfilled. For contractors, there is no entitlement to rates fixed by collective agreement or to special payments. Persons covered by a contract for works and services have to make their own arrangements for payment of taxes and social insurance contributions.

 

You can obtain free legal advice from the Chambers of Labour, trade unions and the Chamber of Commerce, whose area of responsibility includes the self-employed.