Collective agreement
A new collective agreement is expected to apply from January 1, 2026. While it is still under negotiation, employers should prepare for mandatory salary adjustments once it is published.
- Employees without current overpayment must be adjusted to the new minimum salaries.
- The IT agreement typically includes IST-Erhöhung:
- Applies to employees already earning above the minimum salary.
- Must be applied no later than July 1, 2026.
- Details and exceptions will be provided in the official collective agreement.
- Terms may adjust year-to-year.
Social security contribution
Changes to contribution caps and rates will affect both employers and employees from January 1, 2026, with additional Vienna-specific increases pending official confirmation.
- Maximum contribution base: €6,930/month
- Maximum contribution base for special payments: €13,860/year
- Vienna-specific change:
- Employer + employee rate increases by 0.25%
- Employee contribution rises to 18.32% from January 1, 2026
- Further details pending publication.
Marginal employment
The marginal employment threshold remains unchanged for 2026, increasing the risk that regular salary adjustments may push employees into full social insurance coverage.
- Threshold remains €551.10/month (holiday & Christmas bonuses excluded).
- Since the threshold is not increasing, salary adjustments may push employees above the limit, triggering:
- Full social insurance contributions
- Loss of marginal-status eligibility
- If earnings exceed €551.10 in any month, full insurance applies immediately.
- Marginal work while receiving AMS benefits is allowed only in exceptional cases from January 2026; otherwise, employment must end by January 31, 2026, to retain unemployment benefits.
- Employers must report marginal employment to AMS and register employees accordingly.
- From 2026, weekly working hours must be recorded for marginal workers.
Other key updates
Several payroll and compliance rules will change in 2026, impacting overtime taxation, meal allowances, and working-time coverage checks.
- Only 10 overtime hours per month can be paid tax-free (max €120).
- Meal allowances must be itemised in payroll records starting in 2026.
- Coverage check (Deckungsprüfung) required for employees with all-in contracts or overtime allowances:
- Verify actual hours worked vs. hours covered by the contract.
- Excess hours must be paid out.
