Starting work in Austria differs from Germany in two important ways: insurance runs through the social insurance system under the ASVG, and in most cases your pay follows the collective agreement (Kollektivvertrag) for your industry. If you understand both early, you can judge job offers better and avoid gaps in your cover.
Short answer: As an employee in Austria you are generally under compulsory insurance under the ASVG. This covers health, pension, unemployment and accident insurance. Your employer registers you and deducts contributions from your gross pay. Your minimum pay usually follows the collective agreement for your industry. Last updated: October 2026.
Key points
- As an employee in Austria you are generally under compulsory insurance. Your employer registers you.
- Insurance covers health, pension, unemployment and accident insurance, each with its own contributions.
- Your pay usually follows the collective agreement (Kollektivvertrag, KV) for your industry.
- Contribution rates change. Check the current position on the social insurance portal before you calculate anything.
- If you live in Germany and work in Austria, clarify responsibility for insurance and tax before you start.
Which insurance do you need as an employee?
In Austria, the General Social Insurance Act (Allgemeines Sozialversicherungsgesetz, ASVG) governs compulsory insurance for employees. The insurance has four branches. In most cases, the Austrian Health Insurance Fund (ÖGK) is responsible for health insurance. After registration you receive an e-card, which you use for health services.
| Insurance branch | What it covers | Who pays the contributions |
|---|---|---|
| Health insurance | Medical treatment, medication and hospital stays under the fund’s rules | Employer and employee, with shares varying by branch |
| Pension insurance | Old-age, disability and survivors’ pensions | Employer and employee |
| Unemployment insurance | Unemployment benefit when employment ends | Employer and employee |
| Accident insurance | Benefits for workplace accidents and occupational illness | Usually the employer |
The table describes the basic structure only. Contribution rates and the split between employer and employee are adjusted regularly, so we deliberately do not list percentages. The current position is on the social insurance portal, and your payslip shows the actual deductions.
How is your pay set in Austria?
In most industries, the collective agreement sets the minimum pay. A collective agreement is a sector-wide agreement between employer and employee representatives. It defines pay groups, classifications and often allowances. The collective agreement that applies to you follows from your employer’s industry.
The collective agreements are available through the Austrian Economic Chamber (WKO) in a database. There you find the pay tables for your group. Ask about your classification during the interview too. If you know the agreement, you can judge better whether an offer is above or below the minimum pay.
Many collective agreements also provide for special payments. Whether they apply, and in what amount, is set out in the agreement itself and not only in the pay table. Read the collective agreement and your employment contract together.
How are your deductions calculated?
Social insurance contributions are calculated as a percentage of gross pay. Your employer deducts your share and pays the contributions. Your employer also withholds income tax. How much tax you end up paying depends on your total income and allowances.
Because contribution rates, assessment ceilings and tax tariffs change, do not calculate your expected net pay with old figures. When you review an offer, use the current position on the social insurance portal and ask your employer how it runs payroll.
Cross-border workers: living in Germany, working in Austria
Many new graduates commute from Germany to Austria, for example from Bavaria. Special rules apply to cross-border workers, both for health insurance and for taxation. Which Austrian or German body is responsible depends on the individual case and on the agreement between the two countries.
For commuters, your place of residence also matters, because it determines where you receive benefits, for example when you visit a doctor. Ask your German health insurer which benefits it covers for insured persons working abroad and which proof it requires.
Before the contract starts, clarify two questions: which health insurer covers you, and which tax office taxes your salary. Get the answer confirmed in writing, because it determines contributions, benefits and filing deadlines.
What do you do in your first week?
Check whether your employer has registered you with social insurance. A missing registration is a problem you should not solve alone. Raise it with your employer first. If that does not help, you can contact the competent health insurer or the Chamber of Labour (Arbeiterkammer), which advises employees on employment law questions.
Also make sure your employment contract states the collective agreement, your pay, your working hours and the start date. If any of these are missing, ask before your first month begins.
Frequently asked questions
Do I need Austrian health insurance?
If you are employed in Austria and compulsory insurance applies, your employer usually registers you with the ÖGK. Cross-border workers can be subject to other rules. Clarify this before your first working day, so that you are neither covered twice nor not at all.
Is there a statutory minimum wage in Austria?
A general statutory wage floor for all industries is not the decisive point for a new starter. The minimum pay in the collective agreement for your industry is usually what counts. If you are unsure, ask the Chamber of Labour (Arbeiterkammer) or your union which agreement applies.
How do I find out which collective agreement applies to me?
The collective agreement follows from your industry and sometimes from the type of work. Your employment contract usually names it. The WKO database helps you find it, and the Chamber of Labour can help with classification questions.
How do I compare an Austrian offer with a German one?
Do not compare gross figures. Compare net pay after social insurance and tax. Also consider special payments, holiday entitlement, travel costs and extras such as meal allowances or a company car, if offered. Use current rates rather than figures from older comparisons.
Are there special payments like the German Weihnachtsgeld?
That depends on the collective agreement. Some agreements provide for special payments, others do not or only in specific cases. Do not rely on a comparison with Germany. Check the agreement that applies to you.
What to do next
- Establish the industry and the collective agreement for your post before you negotiate pay.
- Ask for written confirmation of your registration with social insurance and keep your e-card safe.
- For cross-border questions, clarify responsibility for health insurance and tax with your German health insurer and the tax office.
- Check your first payslip against the current social insurance position and the collective agreement.
Related articles
- Working abroad after your studies: health insurance and pension
- Checklist: review your health insurance after graduation
- Understanding your first payslip
- Your first payslip explained
- Private or statutory health insurance for your first job (in German)
Sources: Austrian social insurance portal (accessed October 2026); Austrian Economic Chamber, collective agreements (accessed October 2026). The collective agreement that applies and the statement of the competent body are binding.
Last updated: October 2026. This guide is general information, not individual advice.
