What is SVS (Sozialversicherung der Selbständigen)?

The Sozialversicherung der Selbständigen (SVS) is the compulsory social insurance institution for Austrian entrepreneurs, freelancers, and GmbH shareholders with a controlling stake. It was created in 2020 by merging the former SVA (for the self-employed) and SVB (for farmers).\n\n**Who is covered by SVS (not ASVG)**\nSVS covers: sole traders (Einzelunternehmer); liberal professionals (Freiberufler such as doctors, lawyers, architects); GmbH/AG shareholders owning more than 25% of the company; and farmers. Employees (including GmbH directors who own 25% or less) are insured under ASVG (the general employee social insurance system).\n\n**The >25% threshold — the central distinction**\nA GmbH director who owns more than 25% of shares is treated as self-employed for social insurance purposes, even if they receive a formal employment contract. This means: (a) they pay SVS, not ASVG; (b) they bear the full ~26.8% contribution themselves (no employer portion); (c) sick pay and unemployment benefits differ significantly from employee equivalents.\n\n**Rate breakdown (2025 approximate)**\n- Krankenversicherung (health): 6.8% of income\n- Pensionsversicherung (pension): 18.5% of income\n- Unfallversicherung (accident): fixed fee ~€130/year\n- Total: approximately 26.8% on net income\n\n**Income base for SVS**\nSVS contributions are calculated on the prior year's assessed income (Einkommensteuerbescheid). During the assessment year, provisional contributions are paid based on a flat monthly minimum. Once the tax assessment arrives, a final settlement is made. This time lag means SVS bills can arrive 1–2 years after the income was earned.\n\n**Income ceilings**\nLike ASVG, SVS has an annual income ceiling (Höchstbeitragsgrundlage) above which no further pension and health contributions are due. In 2025 this is approximately €75,180/year (€6,265/month). Income above this ceiling is not subject to further SVS pension or health contributions.\n\n**Minimum contributions**\nEven with zero income, SVS members pay a minimum Krankenversicherung contribution (approximately €170–200/month) to maintain health insurance coverage. This is a significant ongoing fixed cost for newly self-employed individuals in low-earning years.