One of the most distinctive features of Austrian employment is the 13th and 14th salary — two extra monthly payments made to most employees each year. If you're new to Austria, these payments can be a pleasant surprise. Even better, they come with a highly preferential tax rate.
What Are the 13th and 14th Salaries?
In Austria, most collective agreements (Kollektivverträge) entitle employees to two additional salary payments per year on top of their regular 12 monthly paychecks:
- 13th salary (Urlaubsgeld / holiday pay): Paid in June
- 14th salary (Weihnachtsgeld / Christmas bonus): Paid in November
Each payment equals your regular monthly gross salary.
So if you earn €3,000/month gross, you receive 14 payments per year totalling €42,000 gross annually — not 12 × €3,000 = €36,000.
Note: Whether you receive these payments depends on your collective agreement or employment contract. Most employees in Austria are covered, but some contracts — particularly for management or atypical employment — may handle bonuses differently.
The 6% Flat Tax Rate
This is where it gets interesting. While your regular monthly salary is taxed according to the progressive income tax brackets (up to 55%), the 13th and 14th salaries benefit from a special flat tax rate of just 6%.
This preferential treatment is one of Austria's most employee-friendly tax rules, and it makes a significant difference to your net payment.
The Free Threshold (Freigrenze)
The first one-sixth of your annual gross salary is completely tax-free for Sonderzahlungen purposes. This threshold is recalculated each year based on your salary.
For a €3,000/month salary:
- Annual gross: €36,000 (12 regular months)
- One-sixth: €6,000
- First €6,000 of Sonderzahlungen: 0% tax
- Remaining amount above threshold: 6% tax
Since each bonus payment is typically one monthly salary (€3,000), and the threshold is €6,000, both bonus payments combined stay within or near the threshold — often resulting in very low or zero income tax on your bonus payments.
Worked Example: €3,000/Month Salary
Regular Monthly Net (Approximate)
| Item | Amount |
|---|---|
| Gross salary | €3,000 |
| Social security (~18.12%) | −€544 |
| Wage tax (Lohnsteuer) | −€312 |
| Net salary | ~€2,144 |
13th / 14th Salary Net (Approximate)
| Item | Amount |
|---|---|
| Gross bonus | €3,000 |
| Social security (~18.12%) | −€544 |
| Tax (6% on taxable amount) | −€0 to −€90 |
| Net bonus | ~€2,410–€2,456 |
Your bonus net is significantly higher than your regular monthly net because the 6% rate is far lower than the income tax rate applied to regular salary.
How Social Security Applies to Bonus Payments
Social security contributions apply to Sonderzahlungen at the same rates as regular salary, subject to the annual contribution ceiling (Höchstbeitragsgrundlage).
For 2026, the monthly ceiling is €6,450/month (€90,300 annually, across all 14 payments). If your salary is below this ceiling, full social security applies. Above it, the excess is not subject to contributions.
Annual Salary Stated "On 14 Payments"
In Austria, salary is almost always quoted as an annual amount based on 14 payments. When an Austrian job listing says "€42,000 Jahresgehalt," that typically means:
- 12 regular monthly payments of €3,000, plus
- 13th salary of €3,000 (June), plus
- 14th salary of €3,000 (November)
If you're comparing to a salary in a country that pays 12 times per year, a "€42,000 Austrian salary" is equivalent to a 12-payment salary of €42,000 ÷ 14 × 12 = €36,000. Keep this in mind when evaluating job offers.
Comparing Effective Tax Rates
| Payment type | Gross | Social security | Income tax | Net |
|---|---|---|---|---|
| Regular monthly (€3,000) | €3,000 | −€544 | −€312 | ~€2,144 |
| 13th/14th salary (€3,000) | €3,000 | −€544 | −€54 | ~€2,402 |
The tax difference is dramatic. Your bonus payment nets approximately €258 more than a regular monthly payment of the same gross amount.
What If My Bonus Exceeds One Monthly Salary?
Performance bonuses paid on top of the 13th/14th salary also benefit from the 6% rate — but only up to the annual Sonderzahlung limit of one-sixth of annual salary above the free threshold.
Once the threshold is exceeded:
- The excess is taxed at a rate of 6% + half of the average tax rate on regular income — still more favourable than normal brackets
- Very large bonuses (above €83,333 total in Sonderzahlungen) are taxed at 27%
For most employees, this cap is irrelevant — but high earners with large performance bonuses should be aware.
How to See Your Bonus Net Before It Arrives
Use our income tax calculator which includes the 13th and 14th salary calculation. Toggle the bonus months on to see the exact net amount for your salary level.
Tips to Maximise Your Bonus Payments
1. Don't Negotiate Away Your Bonuses
Some employers, especially international companies, offer an "all-in" contract without separate Sonderzahlungen. This is taxed entirely at progressive rates. Always check whether your contract includes the 13th and 14th payments — losing them has a significant tax cost.
2. Consider Timing of Other Income
If you expect other income (rental, freelance) in a particular year, try to plan it around the low-tax months (June and November may be good times for any discretionary actions, as you've already had significant net income in those months).
3. Voluntary Pension Contributions
Contributions to the Austrian state-subsidised pension scheme (Zukunftsvorsorge) can offset some of your regular monthly tax. This doesn't affect bonus taxation but reduces your overall annual tax bill.
Summary
| Regular salary | 13th / 14th salary | |
|---|---|---|
| Tax treatment | Progressive (20–55%) | Flat 6% |
| Free threshold | Standard allowances | 1/6 of annual gross |
| Social security | ~18.12% | ~18.12% |
| Paid | Monthly | June + November |
The 13th and 14th salary is one of the most tax-efficient components of Austrian compensation. Understanding how it works helps you plan your finances better — and lets you look forward to June and November with good reason.
Figures are based on 2026 Austrian tax regulations. Exact amounts depend on collective agreement, employer, and individual tax situation.