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VIENNA – New rules for marginal employment (“geringfügige Beschäftigung”) will take effect in Austria from January 1, 2027. While the monthly earnings threshold for marginal employment will remain unchanged at €551.10, employers meeting certain conditions will face significantly higher payroll-related charges.
According to financial information portal Finanz.at, the annual adjustment normally applied to the marginal employment threshold has been suspended for 2027. At the same time, the flat-rate employer levy (“Dienstgeberabgabe”) will increase from 19.4 percent to 23 percent, raising costs for affected businesses.
Earnings Limit Remains Frozen
In Austria, many social insurance thresholds are adjusted annually based on the statutory revaluation factor, which will be 1.046 for 2027. However, the marginal employment limit is an exception.
As a result, employees across Austria will continue to be allowed to earn up to €551.10 per month under a single marginal employment contract without exceeding the threshold. No increase will be granted despite the broader adjustment of social insurance values.
Other social insurance figures will increase. For example, the monthly maximum contribution base is set to rise from €6,930 to €7,410.
Higher Costs for Employers
While employees will see no change in the earnings cap, many employers will face higher expenses from the start of 2027.
The flat-rate employer levy will increase from 19.4 percent to 23 percent, representing a rise of 3.6 percentage points, or approximately 18.6 percent compared with the current rate.
The charge does not apply automatically to every company employing marginal workers. It becomes payable when the combined monthly contribution bases of all marginal employees exceed one and a half times the marginal employment threshold.
That threshold will remain unchanged at €826.65 per month in 2027.
Impact Illustrated
The financial effect of the higher levy can be significant.
For an employer with a relevant monthly contribution base of €1,000, the costs would increase as follows:
| Employer Levy | 2026 | 2027 |
|---|---|---|
| Levy Rate | 19.4% | 23.0% |
| Monthly Charge | €194 | €230 |
| Annual Charge | €2,328 | €2,760 |
Under this scenario, annual costs would rise by €432.
If the relevant contribution base amounts to €2,000 per month, the additional burden would be €72 per month, or €864 per year.
These examples refer only to the flat-rate employer levy and do not include other employment-related expenses.
Measure Scheduled Until 2029
The higher 23 percent levy is intended to remain in place for three years, from 2027 through 2029.
Under the current legal framework, the rate is scheduled to fall to 21 percent in 2030.
Meanwhile, both key thresholds, the marginal employment limit of €551.10 and the employer levy threshold of €826.65, will remain unchanged in 2027.
What It Means for Workers
For employees, the most important aspect of the reform is that the earnings limit will not increase.
Anyone working in a marginal employment role in 2027 can continue to earn up to €551.10 per month under a single employment relationship without exceeding the threshold. Exceeding that amount generally means the employment will no longer qualify as marginal employment. Individuals holding multiple jobs may also face additional social insurance obligations, depending on their circumstances.
The increase in the employer levy affects businesses rather than employees directly. For companies employing multiple marginal workers, the combined monthly contribution base will remain the key factor in determining whether the levy applies.
In summary, from January 1, 2027, Austria’s marginal employment earnings cap will stay frozen, while affected employers will face a notable increase in payroll-related charges.
- source: vienna.at/picture: pixabay.com
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