Total Employer Cost (Lohnkosten)

Definition

From the employer's perspective, total payroll cost is gross wage plus every employer-borne levy: SI-DG, UV, WBF-DG, KommSt, DB (FLAF), DZ (Chamber-of-Commerce levy), and MVK (occupational pension). For a typical gross wage in Vienna, the employer-side markup is roughly 30 % above gross. The employee receives significantly less net than gross, while the employer pays significantly more, that difference is Austria's "Lohnnebenkosten" wedge, one of the highest in the EU.

Employer markup by component (Vienna, 2026)

Example: gross €4,000/month, Vienna (2026)

With gross €4,000/month in Vienna the total employer markup across all components is € 1.192,80, or 29,82 % above gross. Total employer cost this month: € 5.192,80. The employee receives roughly €2,700 to €2,900 net (depending on family situation), so the wedge between employer cost and net take-home is around 45 %.

See also, components

• Sozialversicherung (SV) , KV + PV + AV employer share.
• Wohnbauförderung (WBF) , per-Bundesland; Vienna 0,75 %, others 0,50 %.
• Kommunalsteuer , 3,00 % flat to the municipality.
• Dienstgeberbeitrag (DB / FLAF) , 3,70 % to the FLAF.
• Zuschlag DB (DZ / Kammerumlage 2) , to the Chamber of Commerce; varies by Bundesland (Vienna included).
• Betriebliche Vorsorge (BV / MVK) , 1,53 % to the occupational pension fund.
• Steuerkeil , the total wedge: employer cost minus employee net.