The 2027–2028 Budget Accompanying Act introduces far-reaching changes in all areas of tax lawand numerous practical changes in payroll accounting. Below is an overview of the key measures that employers and payroll departments have to take into account starting in 2027.
u Extraordinary Increase in the Maximum Contribution Base (ASVG – “Höchstbeitragsgrundlage”))
The monthly maximum contribution base for social security will be increased in addition to the regular adjustment: by EUR 150 for 2027 and by an additional EUR 50 per month for 2028 (Section 108 (3) ASVG). In payroll accounting, the updated maximum contribution bases have to be entered into the system as 2027.
u No Increase in the threshold for marginal employment under social security lawfor 2027 (ASVG – “Geringfügigkeitsgrenze”)
The threshold for marginal employment under social security law will remain at EUR 551.10 in 2027 as well.
u Reduction of the Employer Contribution to the Family Burden Compensation Fund (DB)
The employer contribution to the Family Burden Compensation Fund (DB) will be reduced from the current 3.7% to 2.7% of the contribution base, effective for payment periods beginning on or after January 1, 2028.
u Elimination of Age-Based Exemptions for DB, DZ, Unemployment Insurance (AlV), and the Insolvency Wage Guarantee Surcharge (IESG-Surcharge)
The existing age-based exemptions will be phased out: As of January 1, 2027, the exemption from the unemployment insurance contribution and the IESG surcharge for employees aged 63 and older will be eliminated; as of January 1, 2028, the DB and DZ exemptions for those aged 60 and older will be eliminated. However, the exemption regarding accident insurance starting at age 60 for insured persons under the ASVG remains unaffected.
u Elimination of the Unemployment Insurance Contribution Scale for Low-Income Earners
The graduated unemployment insurance employee contribution for low incomes is being abolished. Starting in 2027, a multi-year transitional arrangement through latest 2031—with annually increasing contribution rates—will apply to new hires and existing employment relationships. For apprentices, however, a cap of 1.15% will continue to apply.
u Elimination of the tax exemption for the telework allowance
Effective January 1, 2027, the tax exemption for the telework allowance will be completely eliminated—neither tax-free payment through payroll processing nor claiming it as income-related expenses will be possible. Exemptions from income tax (DB), state income tax (DZ), municipal tax (KommSt), and social security/pension contributions (SV/BV) will also be eliminated; the requirement to record telework days on payroll accounts and pay stubs will likewise be eliminated.
u Changes to the Family Bonus Plus — New E 30 Declaration Required
As long as the child has not yet reached the age of four, the Family Bonus Plus can either be claimed in full by one eligible person or divided equally between both eligible persons, with each claiming 50%. Eligible persons include, in particular, the person entitled to receive family allowance (Familienbeihilfe) or their spouse, as well as the taxpayer entitled to the child support tax deduction (“Unterhaltsabsetzbetrag”). Once the child has reached the age of four, the Family Bonus Plus can generally no longer be claimed in full by just one eligible person. In this case, the Family Bonus Plus must be divided between the eligible persons, either in a 75:25 or 50:50 ratio. Full entitlement by one person remains possible if an increased family allowance (“erhöhte Familienbeihilfe”) is received for the child or in the case of single parents.
Since Form E 30 is being revised, all affected employees should be notified well in advance—no later than the turn of the year 2026/2027—of the requirement to submit a new declaration.
u Freeze on Indexation of Family and Social Benefits Until the End of 2028
The automatic indexation of family allowance, child care allowance, family time bonus, as well as sickness, reintegration, and rehabilitation benefits have been suspended until the end of 2028. The amounts will thus remain unchanged for two additional years.
u Further tightening and expansion of client liability (Social Fraud Prevention Act) and stricter AlVG sanctions
Liability under the Social Fraud Prevention Act (SBBG) is being expanded once again: In cases of grossly negligent contracting with shell companies, the client will in the future also be liable for unemployment insurance (AlV) contributions, contributions to the chamber of labour contribution (“Arbeiterkammerumlage”), as well as income tax and value-added tax. In addition, penalties for the employment of recipients of benefits provided by the Public Employment Service Austria (AMS) are being tightened,with consequences also for employers who fail to comply with their advance notification obligation in a timely manner.
u Non-cash benefit for electric vehicles
The planned introduction of a non-cash benefit for company vehicles with zero CO₂ emissions is another key issue for payroll accounting. Due to its complexity and high practical relevance, a separate article will be published on this topic.
The 2027-2028 Budget Accompanying Act results in one of the most extensive waves of changes to payroll processing in recent years in numerous changes to payroll accounting . The simultaneous implementation of numerous new regulations at a wide variety of levels poses significant implementation challenges. Given that most of these changes are scheduled to take effect on January 1, 2027, it is essential to address the individual topics early and in a coordinated manner.
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