Freelance service contract
Definition
A free service contractor (freier Dienstvertrag under § 4 (4) ASVG) owes work over time, but without the personal dependence of a genuine employment relationship: no fixed hours, no narrow right of instruction, own tools allowed. For social insurance they have been treated almost like an employee since 2008: fully ASVG-liable including unemployment insurance and occupational provision, capped at their own monthly contribution ceiling of €8,085 (2026).
Contribution ceiling by year
Per month, § 45 ASVG. Free contractors have no separate cap for special payments, so their monthly cap is above the employees' regular one.
The rules
- Payroll add-ons: almost the same as for an employee: employer social insurance 20.48% including accident insurance, municipal tax, employer contribution plus surcharge and occupational provision.
- No housing levy: neither on the contractor's nor on the client's side.
- No 13th and 14th salary: free contractors fall under no collective agreement, and the § 67 EStG relief does not apply to them.
- No wage tax: the client withholds social insurance only. The contractor pays income tax themselves via the annual assessment, under the same tariff (§ 33 EStG).
Example: gross €4,230/month (Vienna, 2026)
The fee equals the median full-time salary 2026 (forecast), twelve times a year, as there is no 13th and 14th. The tax is an estimate: the contractor only pays it with the annual assessment.
See also
- Werkvertrag, genuine self-employment without payroll levies, the sharpest contrast to the free service contract.
- Contribution ceiling (HBG), how the cap works for everyone else.
- Employment, free service or work contract, the three contract types compared.
- •§ 4 Abs 4 und § 45 ASVG
- •§ 33 EStG 1988 (RIS)