Gross to net Payroll Engine Austria

G2N Nova is the only Gross-to-Net Engine Austria designed for 100% accurate payroll calculations, covering Austria and 100+ other countries. Operating in real-time on a unified, native platform, it ensures compliance without storing or accessing employee-identifiable data.

Built to align with Austria’s strict data privacy laws, G2N Nova keeps sensitive payroll information securely within the client’s systems. With no direct data access required, it delivers a seamless, efficient, and fully compliant payroll experience.

Discover the future of payroll processing. Request a demo today.

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Gross to net payroll tax engine for Austria

Looking for the latest payroll tax updates in Austria? Powered by G2N’s Payroll Tax Engine Austria, our cloud-based platform delivers real-time, automated updates tailored specifically for Austrian payroll regulations. This SaaS tax engine seamlessly integrates with historical payroll data in pay statements, ensuring accuracy and compliance.

• Keep your existing HCM/ERP/WFM software without switching to an external payroll solution.
• Partner with a provider offering a plug-and-play solution exclusively for payroll tax updates.

Solutions

• HCM/ERP/WFM Systems: G2N integrates effortlessly with all major HCM, ERP, Time, Pay, and Attendance systems, allowing organizations to continue using their existing infrastructure without disruption.
• System Integrators: G2N enables system integrators to easily add cross-border payroll functionality to their platforms. This simplifies international payroll management while giving integrators full control over the user experience, ensuring tailored and seamless payroll solutions for their clients.
• Enterprises: Simplify your payroll management with G2N’s unified platform. Eliminate processing headaches, free up valuable time to grow your business, enhance your products, or finally take that much-needed vacation!
• SMEs: Built for flexibility and growth, G2N scales effortlessly to accommodate your expanding workforce and evolving compliance needs. From 1 to 120,000 records, G2N ensures accurate real-time gross-to-net payroll processing, making it the perfect solution for small and medium-sized businesses.
• Service Providers: Focus on what matters most to your clients and your business with G2N’s seamless payroll processing platform, trusted by leading Fortune Global 500 companies

How It Works

Input

• Employee Data: Captures compensation, benefits, and essential personal details.
• Leave Management: Tracks and processes leave, absences, and time-off requests.
• Time & Activity Tracking: Monitors work hours, attendance, and overtime for precise payroll calculations.

G2N Nova Process

• Country-Level Filing: Integrates with statutory authorities to ensure accurate tax and social security filings in compliance with Austria’s regulations.
• Country-Level Compliance: Aligns with local payroll laws, backed by an in-house compliance team ensuring full regulatory adherence.
• Global Payroll Engine – Gross-to-Net Computation: Functions as a tax engine Austria, delivering real-time, precise payroll calculations for accurate payments and deductions.

Output

• General Ledger (GL): Provides detailed financial records for seamless accounting and reconciliation.
• Treasury Management: Generates reports for effective cash flow and treasury planning.
• Bank File Generation: Prepares secure bank files for smooth payroll disbursements.
• Payslips: Issues detailed payslips outlining deductions, taxes, and net pay, serving as a payroll calculator Austria for businesses.

G2N Nova offers a salary calculator Austria with a flexible, scalable, and compliant payroll solution. Designed for seamless integration with existing systems, it ensures a transparent and efficient payroll experience tailored for Austria.

Features of G2N Payroll Engine Austria

Benefits

Streamlined Payroll Processing

G2N Payroll Engine Austria ensures fast, accurate, and compliant payroll operations, powered by a robust payroll tax engine Austria for precise tax and salary calculations.

Seamless Inbound and Outbound Integrations

Our platform integrates effortlessly with Austria’s payroll and HR systems, enabling smooth data transfer, improving efficiency, and minimizing payroll tax calculation errors.

Eliminate Manual Data Extraction

G2N automates payroll data handling, reducing manual effort and eliminating errors with its advanced tax engine Austria, ensuring accurate payroll processing.

Multi-Country Payroll Capabilities

Businesses in Austria can manage payroll across multiple regions with ease, ensuring seamless payroll calculator Austria functions and tax compliance across borders.

Everything you need to know about Gross to Net Calculation in Austria

Following are the details required to calculate gross to net salary in Austria.

Number of Children

In Austria, gross-to-net salary calculation involves deducting social security (≈18%) and progressive income tax (0-55%). Single earners or parents may qualify for tax credits like Family Bonus Plus (€2,000 per child) and additional allowances.

Single-Earner Tax Allowance (AVAB)

The Single-Earner Tax Allowance (AVAB) in Austria is a tax credit for families where only one parent is employed. In 2025, the allowance is €601 for one child, €813 for two children, and +€267 for each additional child, with a 4.9% increase from the previous year. To qualify, the couple must have lived together for at least six months, and the partner’s income must not exceed €6,924.26 (2024). AVAB is claimed via form E30 through payroll deduction or tax assessment.

Single Parent Tax Allowance (AEAB)

The Single Parent Tax Credit (AEAB) in Austria is a tax relief for single parents receiving family allowance for at least seven months. In 2025, it amounts to €601 for one child, €813 for two, and +€267 for each additional child, with a 4.9% increase from 2024. It is claimed through form E30 or L1 and cannot be combined with the Single-Earner Tax Allowance (AVAB). The credit is automatically adjusted for inflation and factored into payroll tax calculations.

Family Bonus

The Family Bonus Plus is a tax deduction designed to reduce the tax burden for families with children. The amount is based on gross income and applies as long as family allowance is received.

Key Benefits & Amounts (2024 & 2025)

• €2,000 per year (€166.68 per month) for children under 18.
• €700 per year (€58.34 per month) for children 18 and older (if family allowance is still received).

Eligibility & Claiming Options

• Can be applied monthly through payroll accounting or annually via tax return (Form E30).
• If income tax is too low, an additional child allowance (€700 from 2024) is granted as a negative tax.
• Separated parents can split the bonus.

Special Considerations

• Low-income earners: If tax payable is lower than the bonus, no tax is due.
• Children abroad: Indexed for children in the EU/EEA/Switzerland; not available for those outside these regions.
• Disabled children: Parents continue to receive both family allowance and Family Bonus Plus.

Commuter Allowance

The commuter allowance is a tax benefit available to employees in Austria who travel between their home and workplace. It helps reduce commuting costs and is determined based on distance and the reasonableness of public transport.

Types of Commuter Allowance

There are two categories:

Small Commuter Allowance

For employees who have access to reasonable public transport but still commute a certain distance.

Large Commuter Allowance

For employees who travel long distances or when public transport is not a reasonable option.

Benefit in Kind

In Austria, benefits in kind refer to non-cash compensation that employers provide to employees, either free of charge or at a reduced cost. These benefits can include company cars for private use, employer-provided housing, employee discounts, and subsidized meals. Employment contracts may outline whether an employee is entitled to such benefits and whether any payment is required in return, either through direct contributions or salary deductions. However, benefits in kind cannot be deducted from the minimum wage, as they are governed by collective agreements.

Employees retain benefits in kind during periods when they continue to receive remuneration, such as during vacation, leave of absence, or sick leave. In some cases, these benefits may also apply during unpaid periods, such as maternity leave. Employers may include revocability clauses in contracts, allowing them to withdraw these benefits if necessary. However, if no such clause exists, employees may have the right to claim damages if the benefit is withdrawn in violation of the contract.

These benefits are considered part of an employee’s overall compensation and must be taken into account when calculating severance pay, pension fund contributions, and social security contributions. In cases of wage garnishment, employers are not required to include the actual value of benefits in kind when determining attachable income. However, if these benefits are aggregated with other income, they may reduce the non-attachable allowance while ensuring employees retain a minimum protected amount.

From a payroll and tax perspective, benefits in kind influence social security contributions, wage tax assessments, and employer contributions. Their valuation follows standardized guidelines set by the Austrian Ministry of Finance. If an employee makes a payment toward a benefit, payroll calculations adjust accordingly. When the payment equals or exceeds the official value of the benefit, it is excluded from payroll calculations. Additionally, employees cannot be charged more than a set percentage of contributions, with the employer covering any excess costs.

Tax Allowance

In Austria, tax allowances reduce taxable income, lowering the amount of tax an employee must pay. These allowances include deductions for work-related expenses, special expenses, and extraordinary costs, which employers account for in payroll calculations. Taxpayers can also claim various family-related allowances, such as the single-earner or single-parent tax credit, child tax credit, maintenance allowance, and child allowance.

The single-earner or single-parent tax credit applies to individuals who are legally recognized as single earners or single parents. To qualify, they must have at least one child living in their household, not be permanently separated from their spouse or partner, and their partner must have an income below €6,000 annually. The deduction amount varies based on the number of children, starting at €494 for one child and increasing for additional children. Employees can claim this credit through their employer or via a tax return after the calendar year ends.

Tax-free income, such as family allowance, unemployment benefits, and maintenance payments, is not included in taxable income calculations, except for maternity allowance. However, capital gains from interest, securities, and property sales are considered taxable and contribute to the €6,000 annual income threshold for certain tax credits. Employees can retroactively apply for a payroll tax adjustment for up to five years to claim allowances they did not use in prior years.

The child tax credit is available to taxpayers who receive a family allowance, amounting to €58.40 per child per month. No separate application is required, and eligibility remains even for those with little or no income. The maintenance deduction is granted to taxpayers paying child support for children not living in their household, with amounts ranging from €29.20 for the first child to €58.40 for additional children. This deduction must be claimed at the end of the tax year through a tax return.

The child allowance further reduces taxable income and varies based on whether one or both parents claim it. If claimed by one taxpayer, the allowance is €440 per year; if shared between two taxpayers, each receives €300 annually. In blended families, a stepparent may be eligible for the allowance if the biological parent fails to meet child support obligations. To claim the child allowance, taxpayers must submit Form L1k, providing the child’s insurance number for verification.

Income Tax Rates 2025

From 2025, Austria’s wage tax system will apply progressive tax rates based on annual income. Income up to €13,308 remains tax-free, while earnings between €13,308 and €21,617 are taxed at 20%. The next bracket, from €21,617 to €35,836, incurs a 30% tax rate. Income from €35,836 to €69,166 is subject to a 40% rate, while amounts between €69,166 and €103,072 are taxed at 48%. Earnings up to €1,000,000 are taxed at 50%, with a top rate of 55% applied to income above this threshold. These thresholds have been adjusted for inflation, and the third tax bracket has been permanently reduced to 40%.

The tax reform also addresses “bracket creep” by annually adjusting income thresholds based on inflation, ensuring that wage increases do not push earners into higher tax brackets unfairly. The second and third tax brackets were reduced from 35% to 30% and from 42% to 40%, respectively, with transitional rates applied in 2022 and 2023 before full implementation in 2024.

Monthly wage tax rates reflect these annual adjustments. In 2025, wages up to €1,120 per month remain tax-free, while salaries up to €1,812.42 are taxed at 20%. The rates increase progressively, reaching 50% for monthly earnings above €83,344.33 and 55% for higher incomes. The tax assessment considers deductions such as the general deduction, transport deduction, and family-related allowances like the Family Bonus Plus, which provides financial relief for parents.

For wage earners and pensioners, wage tax is automatically deducted from salaries, while self-employed individuals pay income tax based on a similar progressive scale. Taxpayers can calculate their tax liabilities and potential deductions using Austria’s online gross-net tax calculator. With the new tax reform and digital tools, employees can optimize their tax returns, potentially reclaiming an average of €1,000 annually.

Social Security Contributions 2025

Austria’s Social Security Contributions and Employer Costs for 2025 include contribution thresholds, rates for employees, freelancers, and self-employed individuals, as well as employer-related payroll costs.

Contribution Thresholds (Employees & Freelancers – ASVG)

• Monthly Max Contribution Base: €6,450.00
• Special Payments (Annual): €12,900.00
• Freelancers’ Max Base (Excl. Special Payments): €7,525.00
• Marginal Employment Threshold: €551.10/month

Contribution Rates (Employees & Freelancers)

• Total Employee (EE) Contribution: ~18%
• Total Employer (ER) Contribution: ~21%
• Key Rates:
  • Health Insurance: 7.65% (ER 3.78%, EE 3.87%)
  • Pension Insurance: 22.80% (ER 12.55%, EE 10.25%)
  • Accident Insurance: 1.10% (ER only)
• Unemployment & Other Contributions: ~7.50%

Payroll-Related Employer Costs

• Municipality Tax: 3.00%
• Family Allowance Fund Contribution: 3.70%
• Regional Surcharges: 0.31%–0.40%

Unemployment Insurance Contribution Reduction

• Full Contribution (2.95%) if income > €2,451/month
• Reductions apply between €2,074 – €2,451/month

Max Contributions (Excluding Special Payments)

• Employees: €2,518.73/month | €35,262.22/year
• Freelancers: €2,863.26/month | €34,359.12/year

Traders & New Self-Employed (GSVG/FSVG)

• Min Contribution Base: €551.10/month
• Max Contribution Base: €7,525.00/month
• Health & Pension Insurance: 25.30% (GSVG) | 20.00% (FSVG)