Austria: Compensation for ancillary wage costs during winter holidays

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Ministry of Labour (01.12.2020) Up to now, companies in the building trade and the construction industry have been reimbursed an amount of 17 percent for non-wage labor costs for the winter holidays, on which the employee is entitled to continued payment. The ancillary wage costs for social security contributions, family burden compensation fund (FLAF) and municipal tax are now reimbursed in full for the six winter holidays on construction (December 24th to 26th and 31st and January 1st and 6th) at a rate of 30.1 percent. The financing is provided by the BUAK (construction workers vacation and severance fund ). This measure gives construction companies an incentive to keep their workers in employment over the winter instead of registering them as unemployed.

measures summary

The ancillary wage costs for social security contributions, family burden compensation fund (FLAF) and municipal tax are now reimbursed in full for the six winter holidays on construction (December 24th to 26th and 31st and January 1st and 6th) at a rate of 30.1 percent. The financing is provided by the BUAK (construction workers vacation and severance fund ). This measure gives construction companies an incentive to keep their workers in employment over the winter instead of registering them as unemployed.

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1. Compensation for ancillary wage costs during winter holidays

Up to now, companies in the building trade and the construction industry have been reimbursed an amount of 17 percent for non-wage labor costs for the winter holidays, on which the employee is entitled to continued payment. The ancillary wage costs for social security contributions, family burden compensation fund (FLAF) and municipal tax are now reimbursed in full for the six winter holidays on construction (December 24th to 26th and 31st and January 1st and 6th) at a rate of 30.1 percent. The financing is provided by the BUAK (construction workers vacation and severance fund ). This measure gives construction companies an incentive to keep their workers in employment over the winter instead of registering them as unemployed.

Logging out in winter is therefore unattractive! A total of 5,500 companies in the building trade and the construction industry with 100,000 employees benefit from this. Example: For each skilled worker, the employer is paid 183.27 euros per public holiday. At Christmas 2020/21 there are five instead of six winter holidays to be reimbursed and a total of 916.35 euros, since December 26, 2020 falls on a Saturday and is therefore not reimbursed.