What are the payroll obligations for an Austrian employer?

Austria has a comprehensive and well-enforced employer compliance system. Key obligations begin before the employee's first day and continue throughout employment and beyond.\n\nPre-employment: ÖGK registration (Anmeldung)\nThe most critical and most-breached obligation: every employee must be registered with the Österreichische Gesundheitskasse (ÖGK) BEFORE they begin work. The registration (Anmeldung) can be submitted online via ELDA (the ÖGK electronic reporting portal) or via a Lohnverrechnung bureau. Late or post-hoc registration is a §111 ASVG offence — criminal, not merely an administrative penalty. Inspectors from the Finanzpolizei conduct unannounced workplace checks and verify that all workers present are duly registered.\n\nEmployer social contributions (ASVG)\nFor each employee, the employer pays approximately 21% of gross salary in ASVG contributions:\n- Krankenversicherung (health): ~3.78%\n- Pensionsversicherung (pension): ~12.55%\n- Unfallversicherung (accident): ~1.2%\n- Arbeitslosenversicherung (unemployment): ~3%\n- Insolvenz-Entgeltsicherungsfonds (insolvency fund): ~0.1%\n\nEmployees pay a corresponding ~18% employee share deducted from gross salary.\n\nDB, DZ, and Kommunalsteuer\n- Dienstgeberbeitrag (DB)

3.9% of gross, paid to FLAF (family allowance fund)\n- **Dienstgeberzuschlag (DZ)**: approximately 0.36–0.44% depending on state, paid to the insolvency protection fund\n- **Kommunalsteuer**: 3% of gross payroll, paid to the municipality where the workplace is located\n\nAll three are reported on the monthly Lohnsteueranmeldung (L1) via FinanzOnline and paid by the 15th of the following month.\n\n**Lohnsteuer (wage tax)**\nEmployers withhold Lohnsteuer from employee gross salary and remit it to the Finanzamt monthly. The applicable rate depends on each employee's annual income, declared on their Arbeitnehmerveranlagungsformular (tax card equivalent). The 13th and 14th month Sonderzahlungen are taxed at a preferential flat 6% Lohnsteuer on the first €620 of each payment.\n\n**Sonderzahlungen: the 13th and 14th month**\nUnder most Austrian Kollektivverträge (collective agreements), employees receive:\n- **Weihnachtsremuneration** (Christmas bonus, 13th month): typically paid in November/December\n- **Urlaubszuschuss** (holiday bonus, 14th month): typically paid before summer holidays\nThese are legally required where a Kollektivvertrag applies (which covers most commercial sectors). Amounts are typically one month's gross salary each. Both are taxed at the preferential 6% Lohnsteuer rate on the first €620, making them tax-efficient for employees.\n\n**Annual leave entitlement**\nAustrian employees are legally entitled to 5 weeks (25 working days) annual leave, increasing to 6 weeks after 25 years of service. Leave entitlement accrues immediately and cannot be replaced by cash payment (except on termination). Unused leave carries forward indefinitely.\n\n**Notice periods and dismissal**\nFor non-manual workers (Angestellte), notice periods are governed by the AngG (Angestelltengesetz): minimum 6 weeks (0–2 years), increasing to 5 months at 25 years service. For manual workers (Arbeiter), notice periods are set by Kollektivvertrag. Wrongful dismissal can trigger Abfertigung (severance entitlement) under the ABGB/AngG or contributions to the Mitarbeitervorsorgekasse (MV-Kasse, the Austrian portable pension system for employees starting after 2003).\n\n**MV-Kasse (Mitarbeitervorsorgekasse)**\nFor employees commencing work after 31 December 2002, employers must contribute 1.53% of gross salary to an approved MV-Kasse (occupational pension/severance fund). This is in addition to the ASVG contributions and effectively reduces the pain of statutory severance for employers (since the fund builds the entitlement rather than a lump sum liability).\n\n**GPLA Audit**\nJoint audits (Gemeinsame Prüfung aller lohnabhängigen Abgaben, GPLA) by ÖGK and Finanzamt cover payroll compliance for up to 5 years. They verify: registration of all workers, correct Lohnsteuer deductions, correct ASVG contributions, and correct DB/DZ/Kommunalsteuer. Results in backdated contributions plus interest.