Even if employees actually make more money this year after the latest wage increases and the abolition of cold progression, the state still makes a lot of money. How much of the gross income do we ultimately receive and how much does the company actually have to pay in total?
Workers recently received significant wage and salary increases – and since January 1, even more has remained in the stock market as tax brackets were partially adjusted for inflation as part of the abolition of cold progression.
But that doesn’t mean the state isn’t still doing well when it comes to revenue. Viennese entrepreneur Bernhard Angeler, who runs the website finanzrechner.at, has taken a closer look at “how much the company or boss pays and how much you actually get out of it.” The table can be found online here. The “crown” shows some examples (see image).
In addition to the gross salary, employers, for example B., must pay an employer contribution to the family expenses equalization fund, local tax and much more. In Vienna, an employer tax from the municipality of Vienna (“metro tax”) applies.
For example, if you earn 3,000 euros gross per month, you will earn 42,000 euros per year. A net amount of 30,508.46 euros remains. The employer must pay a total of 54,493.40 euros – a surcharge of 78.62%! For higher incomes, this surcharge can be 100 percent or more.
Call for ‘real tax reform’
The difference between net income and total costs to the company is extremely large with each wage increase. Agenda Austria has calculated: If employees with a gross monthly salary of 3,000 euros receive a net 100 euros more, it will cost the company a total of 215 euros. 100 euros goes to the employee, 115 euros goes to the state through taxes, levies and social contributions. Agenda The Austrian economist Dénes Kucsera therefore calls for a “real tax reform” to reduce the burden, especially on middle incomes.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
