Salary & contract
Special payments (13th/14th salary)
Also: 13th salary · 14th salary · vacation pay · Christmas bonus
Special payments are holiday and Christmas bonuses—the so-called 13th and 14th salaries. They are not legally mandatory but are provided for in nearly all Austrian collective agreements (Kollektivverträge) and enjoy tax benefits up to a certain allowance.
Key Points
- The 13th and 14th salaries are holiday and Christmas bonuses; the payout dates are determined by the collective agreement.
- They are almost always based on the collective agreement (KV), not the law—without a KV entitlement, a contractual promise is required.
- Special payments are taxed at a favorable fixed rate up to one-sixth of the annual salary.
- For a fair annual comparison in Austria, calculate based on 14 payments.
- In the case of mid-year entry or exit, special payments are calculated on a pro-rata basis.
What are special payments in Austria?
Special payments refer to holiday and Christmas bonuses beyond the twelve monthly salaries. As they are typically paid as the 13th and 14th salaries, it is generally referred to as 14 payments a year in Austria. Entitlement and amount are almost entirely derived from the collective agreement, which also sets payout dates—often June and November.
Not a law, but a KV
There is no legal entitlement to a 13th and 14th salary. However, since almost all sectors have a KV, special payments are the norm in practice. Without a KV, an express agreement in the employment contract would be needed.
How are special payments taxed?
Special payments receive tax benefits. Within the so-called annual sixth, they are taxed at fixed rates, lower than regular income, after a tax-free allowance. This makes the 13th and 14th salaries particularly valuable net and is a reason why the gross annual comparison over 14 payments is common in Austria.
- The annual sixth limits how much can be taxed at a preferential rate.
- A portion remains tax-free (allowance), the rest is taxed at a fixed rate.
- If the sum exceeds the annual sixth, the surplus is taxed as regular income.
Why calculate over 14 payments?
Anyone comparing Austrian salaries or stating a salary expectation should include special payments. A monthly gross of 3,500 EUR results in approximately 49,000 EUR annually over 14 payments—significantly more than the 42,000 EUR from a 12-payment calculation.
Distorted
Monthly salary calculated by 12—misses the two special payments, and the annual salary appears too low.
Correct for Austria
Monthly salary calculated by 14—includes holiday and Christmas bonuses, making the comparison accurate.
Frequently Asked Questions
- Do I always have the right to a 13th and 14th salary in Austria?
- Generally yes, because almost all sectors have a collective agreement (Kollektivvertrag) with special payments. However, there is no purely legal claim—without a KV, the employment contract would need to explicitly provide for special payments.
- Are special payments reduced for mid-year entry?
- They are calculated pro-rata, proportional to the completed service period in the calendar year. If you join in July, you receive a corresponding partial amount.
- Why is the 13th and 14th salary so valuable net?
- Because special payments within the annual sixth are taxed at a preferential rate—with an allowance and a fixed, lower tax rate compared to regular income.
Note: This entry provides an overview to the best of our knowledge (as of: July 2026) and does not replace legal advice. Binding information is provided by the Chamber of Labour and the relevant trade union.