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Introduction

With effect from 1 January 2026, an increase in the housing subsidy contribution will come into force in Vienna. The basis for this is a provision in the Housing Subsidy Contribution Act, which since 2018 has allowed each federal state to determine the amount of the contribution independently. While no federal state has made use of this option to date, this is now changing thanks to a corresponding resolution by the Vienna State Parliament.   

Contribution rate increases from 1.0 % to 1.5 %

The housing subsidy contribution in Vienna will be increased from 1.0 % to 1.5 % from 2026. As before, this contribution will be borne equally by the employer and the employee.

In concrete terms, this means

  • Previous share per party: 0.5 %
  • From 2026: 0.75 % for employers and 0.75 % for employees

Who is affected?

The increase applies to:

  • Employees whose employment exceeds the marginal earnings threshold (2026: € 551.10 per month),
  • if they are insured with the Vienna Regional Office of the Austrian Health Insurance Fund (ÖGK) or
  • with other social insurance institutions (e.g. BVAEB) if the place of employment is Vienna.

Freelance employees are not affected, as they are generally not subject to the housing subsidy contribution.

Effects on wage deductions and non-wage labour costs

The increase in the contribution rate by 0.25 percentage points affects both the net salaries of employees and the non-wage labour costs of companies.

  • Total deduction from current salaries for employees in Vienna from 2026:
    from previously 18.07 % to 18.32 %
  • Increase in non-wage labour costs for employers:
    also by 0.25 percentage points
Outlook: Will other federal states follow Vienna's example?

It is not currently known whether other federal states are also planning to increase the housing subsidy contribution. However, the legal basis exists in all federal states, which is why future adjustments cannot be ruled out.

Conclusion

Companies with offices in Vienna should take the increase in the housing subsidy contribution into account in payroll accounting in good time - both with regard to payroll accounting from 2026 and in cost planning. For affected employees, the measure means a slight reduction in net pay.

Our team will be happy to support you in converting your payroll accounting parameters and assessing the impact on your personnel costs.

Status: 04.11.2025