What are the 13th and 14th month bonuses in Austria?

In Austria, employees are entitled to two mandatory annual allowances, commonly known as the 13th and 14th month pay. These payments are often considered bonuses and are subject to specific regulations:


13th Month Pay ("Christmas Allowance")

  • Purpose: This is an additional payment typically made to employees as a Christmas bonus.
  • Payment Deadline: By December 1st each year.
  • Pro-Ration: Employees who join or leave the company during the calendar year receive a proportionate part of this allowance.


14th Month Pay ("Holiday Allowance")

  • Purpose: This is an extra payment provided to employees as a holiday bonus, often intended to cover vacation expenses.
  • Payment Deadline: By June 30th each year.
  • Pro-Ration: Similar to the 13th month pay, this allowance is pro-rated for employees who join or leave the company during the year.


Tax Treatment

The 13th and 14th month pays benefit from preferential tax rates. The tax rates are as follows:

  • For the first EUR 620: 0% tax rate
  • For the next EUR 24,380: 6% tax rate
  • For the next EUR 25,000: 27% tax rate
  • For the next EUR 33,333: 35.75% tax rate


These allowances provide additional financial support and are an important part of the compensation package for employees in Austria.

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