12 February 2025
roadmap
austria
Fringe benefits: A wide range of tax and social security benefits
In an already tense economic climate, it is essential for companies to have qualified personnel. Nevertheless, the Austrian labour market is currently facing a shortage of skilled workers, intensifying competition for talent. To stand out from other employers, companies should take advantage of various tax and social security benefits in cash or in kind.
Austria offers a broad range of tax and social security incentives that enable skilled workers to receive more net income for the same work, benefiting both employees and companies. Additionally, these incentives usually qualify as deductible personnel expenses for employers.
All Austrian employers should consider implementing fringe benefits, which include, among others:
- a childcare allowance of up to EUR 2,000 per year;
- monetary benefits from participation in company events, non-cash benefits and service and company anniversaries up to EUR 737 per year;
- contributions to employee future security measures (including contributions to life insurance policies) up to EUR 300;
- the benefit from the acquisition of capital shares in the employer's company, free of charge or at a reduced price, up to EUR 7,500 per year; meal vouchers up to EUR 8 per day;
- employee discounts up to 20 %;
- employee bonuses up to EUR 3,000 per year; and job tickets regarding public transport facilities.
This list is not exhaustive, so Austrian employers are advised to optimise their remuneration schemes by incorporating attractive fringe benefits.
authors: Marco Thorbauer, Tobias Hayden, Nicolas Rotheneder
Marco
Thorbauer
Partner
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