For example, if a person works in Austria and also resides there, an activity carried out in parallel in Germany must also be subject to Austrian legislation in accordance with the provisions of Regulation 1408/71 or Regulation 883/2004.
With regard to social security contributions, assessment under insurance law, etc., the Austrian social security provisions then apply to both gainful activities.
In these cases, the German company must also register the person working in Germany for compulsory insurance in Austria and settle the corresponding contributions.
In this regard, all provisions of Austrian registration, insurance and contribution law must be observed by the employer.
Below is a brief overview of the main aspects of the provisions to be complied with:
The Austrian social insurance system is structured as a compulsory insurance system. This means that the insurance takes effect by operation of law, irrespective of what the individual wants.
The law also stipulates which insurance institution is responsible for the insurance in terms of location and content. Basically, the insurance cover includes the branches of
- health insurance,
- accident insurance,
- pension insurance and
- unemployment insurance.
General Law on Social Insurance (ASVG)
The scope of application of the General Law on Social Insurance basically extends to all employed workers. The registration, insurance and contribution system is usually administered by the Austrian Health Insurance Fund (ÖGK). It collects the contributions from all branches of social insurance and forwards them to the respective relevant bodies.
Assessment basis and assessment statement
Social security contributions are calculated on the basis of the remuneration to which the employee is entitled under employment law or which they also receive from the employer or a third party. Contributions are compulsory up to the maximum assessment basis. Certain remuneration elements listed in the General Law on Social Insurance do not count towards the assessment basis, such as reimbursement of expenses.
Contributions are settled according to the self-billing procedure. This means that the employer sends the monthly assessment basis notification (mBGM) to the relevant health insurance institution by the 15th of the following month. In individual cases, the contributions are also compulsory upon application.
Maturity and payment deadline
General social insurance contributions are due on the last day of the respective calendar month and must be paid into the contribution account of the relevant health insurance institution within 15 days without prompting.
Subsidiary contributions and levies
Depending on the facts of the situation, the following additional contributions and levies may also be incurred:
- Chamber of Labour levy
- Chamber of Agricultural Workers levy
- Contributions to Housing subsidy
- Bad Weather Compensation contribution
- Insolvency Remuneration supplement
- Night Work contribution
- Contribution to company benefits
However, these additional contributions and levies (with the exception of the night work contribution, which serves to finance a special pension benefit) are not covered by the coordinating regulations of Regulation 1408/71 or Regulation 883/2004 or by the Withdrawal Agreement and the Agreement on Trade and Cooperation. This means that whether these are to be paid must be assessed according to Austrian law or the employment law applicable to the employment relationship.
Assumption of employer duties by the employee
In accordance with Article 109 of the Implementing Regulation (EEC) No. 574/72 (DVO 574/72) or Article 21 of the Implementing Regulation (EC) No. 987/2009 (DVO 987/2009) and the Withdrawal Agreement and the Agreement on Trade and Cooperation, an employer without an address in Austria may agree with the employee that the employee shall assume the obligations to pay the contributions and to submit the notifications.
This kind of agreement shall be submitted to the ÖGK. In addition to this agreement, a service contract and proof of the applicable employment law must be submitted.