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How much do I really earn?

Netto and brutto. Net and gross symbol. Words on wooden blocks change net to gross. Financial concept, Beautiful yellow background, copy space
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Gross is not the same as net

Your first job!

From now on you’ll earn your own money. But wait: Your boss said your salary is 2,000 euros per month.
But the bank statement says that you only received € 1.622,66. How can that be?

Gross is not the same as net

When you are in regular employment, the payroll accounting department subtracts income tax and social insurance contributions from your gross income. These amounts are withheld, and only the remaining net amount is credited to your account. This is your net income.
Gross
This is you income before tax and social insurance are subtracted.
Net
Your income after subtraction of tax and social insurance.
Tip
Use a Gross-Net Calculator to determine what your net salary should be with Brutto Netto Rechner or Finanzrechner.

It always pays to apply for a tax refund

You can get back some of the tax that has been withheld by your employer and paid over to the tax authorities. To do that, you have to submit a tax refund claim (Arbeitnehmerveranlagung) to the tax office. You can do it at the end of each year, and you can even reclaim tax paid up to five years back. You don’t even have to go to the tax office. You can submit the tax refund claim online at finanzonline.at.

Information about how this works and what you can claim is available on the Labour Chamber website (AK-Portal Arbeitnehmerveranlagung).

As a freelance contractor, you have to submit tax returns and pay your taxes yourself

Attention!
Consider this carefully: If you take on a freelance job under a works contract or a service contract (Werkvertrag or freier Dienstvertrag), you are considered self-employed by the tax office and have to do the paperwork and pay any tax yourself. Your customer, i.e. the contracting organisation, will credit the entire gross sum to your account. Never forget to put aside a share that is big enough – with a safety margin – to cover tax and other required payments.

Information and financial support

  • Apprenticeship remuneration, is your income during an apprenticeship; it changes from year to year.
  • Student grants are paid out to students in need of financial support provided they are making sufficient academic progress (www.studieren.at) (www.studieren.at)
  • Family allowance is paid per child, managed by the competent tax office for the parent's area of residence; students are covered up to 24 or 25 years of age provided they make sufficient academic progress (www.bmf.gv.at)
  • Freelance employment, contract work and self-employed work; income tax is not withheld by the contracting organisation, but paid out – contractors have to pay their income tax themselves.
  • Summer jobs and internships are regular employment contracts; you have social security cover and receive a net salary. Don’t forget to apply for a tax refund at the end of the year.
  • When you take on jobs as a student, always know what kind of contractual relationship you are entering, and be aware that you may be liable to repay student grants and family allowance if your income from paid work exceeds a certain limit..

FAQ

Gross is your salary before deductions. Net is what actually ends up in your account after deduction of taxes and social security contributions.
Because income tax and social security contributions are automatically deducted from your gross salary. Your employer does this for you.
With a gross-net calculator – available online, e.g. at finanz.at or arbeiterkammer.at.
With tax equalization (employee assessment), you can reclaim overpaid taxes from the tax office – retroactively for up to five years. This can also be done online via finanzonline.at.
You receive the full gross salary and have to pay taxes and duties to the tax office yourself. Be sure to put money aside for this!
For example, apprenticeship allowances, study grants or family allowances – depending on your living situation and academic success. Information is available at studieren.at and bmf.gv.at.

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