FAQS For Lecturers
Information on Taxation in Austria
As employer, WU is generally obliged to withhold income taxes and social security contributions from its employees’ salary payment. As a rule, Austrian income tax has to be paid if the annual income generated in Austria exceeds the amount of € 2,000. Therefore, a flat-rate tax of 20% will be levied on the total income.
An exemption from taxation in Austria is only possible if a double-taxation agreement with a guest lecturer article is applicable. In this case, the respective lecturer is exempt from taxation in Austria for an employment period of up to four semesters. Kindly note that such double taxation agreements with guest lecturer articles exist with a few selected countries only (please see the list on the website of WU).
Information on Social Insurance Contribution Regulations in Austria
Please note that WU has to withhold social security contributions even in cases where income tax is waived. As employer, WU is therefore obliged to report the start of your employment to the appropriate authorities and to withhold social insurance contributions from the salary payment and transfer them to the social insurance provider. In return, employees get social security protection and are therefore automatically included in the statutory health, accident, and pension insurance system. If the remuneration is below the threshold of marginal part-time employment under social insurance law, the employment contract or the freelance service contract shall be subject to accident insurance only.
Exemption from social insurance contributions in Austria is only possible if a lecturer is employed in two or more EU member states. In this case the health insurance provider in the country where a lecturer has the main place of residence can confirm the social security coverage in the home country with form A1 (statement of applicable legislation). If an employee presents an A1 form confirming that the legislation of the home country continues to apply during his or her employment in Austria, WU will sign an agreement with the employee, confirming the employee’s obligation to pay social security contributions in his or her home country. The due social security contributions are then paid out to the employee together with his or her regular salary. In such cases, the employee is not included in the Austrian social security system. For more details, please also see: http://europa.eu/youreurope/citizens/work/work-abroad/posted-workers/index_en.htm
The social insurance contribution typically amounts to 18.35%, with a maximum contribution basis of currently € 179/day (value for 2020, amount is adjusted annually).
E.g. If an international lecturer teaches 5 days at the International Summer UniversityWU the maximum contribution basis will be 179 x 5 = € 895, and the social insurance contribution therefore amounts to € 164.32.
Kindly note: All information is given without liability and subject to change, especially depending on the tax/social insurance contribution laws.