The 13th and 14th salary: Austria's favorite tax break

Austrian employees get their monthly salary 14 times a year, and the two extra payments are taxed at just 6% after a €620 allowance, with social insurance reduced to at most 17.07%. On €3,500 gross, the 13th salary pays out €2,765.60 net against €2,460.83 in a regular month.

Where the extra salaries come from

The 13th (holiday pay, usually June or July) and 14th (Christmas pay, usually November or December) are not in the statute book; they come from collective agreements that cover nearly every Austrian employee. A €3,500 offer therefore means €49,000 a year. Comparing Austrian and German offers by multiplying by twelve is the classic expat mistake.

How the tax break works

Special payments up to the "Jahressechstel", one sixth of your annual regular pay, which with 14 equal salaries is exactly two months, are taxed separately: the first €620 free, then a flat 6% on the next €24,380 (so up to €25,000), with 27% and 35.75% bands only for very large amounts. If your special payments stay under €2,615 after social insurance for the whole year, they are entirely tax-free. Social insurance drops to 17.07% because two small levies do not apply (less at low incomes, where the unemployment contribution is reduced), with its own annual contribution ceiling of €13,860 of special-payment base.

Bonuses count too

Bonuses and premiums are special payments as well. Anything beyond the Jahressechstel loses the privilege and is taxed like regular salary. With 14 equal payments the 13th and 14th salaries already fill the sixth, so an extra bonus is normally taxed in full at the regular tariff, not at 6%.

See your own numbers

The Austria salary calculator shows all 14 payments separately, matched to the official Finance Ministry calculator to within a few cents, including Vienna's higher 2026 levy.

Frequently asked questions

Do I have a legal right to the 13th and 14th salary?

The entitlement comes from your collective or employment agreement, which in practice covers almost everyone employed in Austria.

What if I start or leave mid-year?

The special payments are prorated: six months of work earns half of each, still at the privileged tax rates.

Is the 6% rate used anywhere else in Europe?

Austria's flat-rate privilege is unusual. Germany, for instance, taxes a 13th salary as ordinary income, one reason Austrian net pay compares better than gross suggests.

2026 values (allowance threshold €2,615, indexed). Examples computed with our tested engine. Last updated 2026-11-04.