Severance Fund (Betriebliche Vorsorge, BV/MVK)
Definition
Betriebliche Vorsorge (BV), often still called Mitarbeitervorsorgekasse (MVK), is the "new severance pay". Under § 6 Abs 1 BMSVG the employer pays 1.53 % of pay including special payments into a BV fund, with no contribution ceiling. The fund invests the money; when the employment ends you can, under certain conditions, have it paid out or leave it invested. The first month is contribution-free, except for a new employment with the same employer within twelve months.
BV rate by year
Applies to ongoing pay and special payments, from the second month. The rate has been unchanged since the new severance system began in 2003. 2027: preview as currently known.
Example: gross €4,230/month (Vienna, 2026)
The median full-time salary 2026 (forecast): €4,230 × 1.53 % = €64.72 a month. The same applies to the 13th and 14th salary, so 14 × €64.72 = €906.08 a year, paid by the employer into the BV fund.
See also
- Total employer cost, all employer levies together, BV is one of them.
- Kommunalsteuer, also on salary and special payments, without a contribution ceiling.
- •§ 6 BMSVG (RIS)
- •§ 7 BMSVG (Beitragspflicht)