Employer's liability only for domestically insured employees

(BMSG-Decree-AÖFV No. 56/2003)

The following alternatives are possible:

:: Basic rule
The 4.5%% employer's contribution (DB) must be paid by all employees employed in Austria.

:: Exceptions in Austria
- Employees sent abroad are considered to be employed in the country and are subject to the DB obligation
- EU/EEA employers (e.g. Swiss entrepreneurs) who employ a service provider abroad, in Austria*) If you are covered by social security in Austria, you must pay the DB.
However, domestic employees are exempt from the DB if they are subject to foreign social security obligations under Regulation 1408/71.

*) This linkage to the DB requirement is considered unconstitutional in the scientific literature.

:: Refund of contribution

Contributions paid in violation of EU regulations can be refunded within a specified period according to § 299 of the BAO.

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