All You Need to Know About Personalverrechnung Wien or Payroll Vienna

Austria is a famous landlocked nation. It has a population of around 8.92 million across Central Europe. The nation shares its geographical boundaries with Germany, Czech Republic, Slovakia, and Hungary. Vienna is the capital city of Austria. Moreover, it is also the largest city in the country. Austria has recently garnered the reputation of being one of the wealthiest nations of the world -with the nominal per capita GDP of around $48,586. In 1999, after signing the Schengen Agreement, Austria accepted Euro as its national currency. 

Once you get an overview of the entire economy of Austria, it is equally important to understand the concept of Personalverrechnung Wien or payroll Vienna. Let us help you understand! 

How is Payroll in Austria Calculated?

The procedures and policies adhering to payroll in Austria are extensive for individuals who are salaried employees or even self-employed. The rules and regulations of Personalverrechnung Wien or payroll Vienna, Austria refer to contributions to be made by both employers and the employees of the nation. 

The payroll system in the nation is a well-organized structure with some basic considerations like: 

1. Mandatory Social Insurance coverage 
2. Procedures related to oral employment are considered legal. However, an in-depth written form of employment summary is important for the entire work culture. 
3. There is the absence of any statutory minimum wage system in the nation. However, collective wage requirements and agreements need a minimum of 1,500 Euros every month. 
4. Both employers as well as employees are expected to contribute to the overall notion of social security

In addition to relevant considerations, the employers and employees are expected to contribute to different funds at multiple rates, including: 

1. Health insurance: Employers contribute 2.78 percent and employees contribute 3.87 percent. 
2. Accident insurance: Employers make a contribution of 1.2 percent. 
3. Unemployment Insurance: A rate of 6 percent is divided equally amongst the employers and employees. 
4. Pension Insurance: Employers make a contribution of 12.55 percent and employees make a contribution of 12.25 percent. 

Employees can consider contributing to religious committees in the form of a trade union or a church tax. Employers tend to deduct the contributions from the salary of the employees. The payroll requirements in Vienna, Austria require tax returns to be filed by 30th April every year. However, tax returns are only expected to be filed when the employee is earning a minimum amount from other fields than their employment.