SHARE
COPY LINK
For members

HEALTH INSURANCE

Everything you need to know about health insurance for freelancers in Austria

Social insurance, the term used to describe health insurance and other aspects such as pensions, is compulsory in Austria - even for self-employed people. Here’s everything you need to know.

Everything you need to know about health insurance for freelancers in Austria
How can you save money on health insurance in Switzerland? (Photo by National Cancer Institute on Unsplash)

Everyone in Austria has to have health and social insurance, but for self-employed people it can be overwhelming to navigate the system.

This is because social insurance is usually taken care of by an employer and the amount is simply deducted from a salary every month. 

However, setting up social insurance as a freelancer or self-employed person can be simplified – once you know the basics.

How does social insurance work in Austria? 

For employed people in Austria, social insurance payments are made to the Österreichische Gesundheitskasse (ÖGK) every month via their employer. 

The ÖGK is the largest social health insurance company in Austria, with 82 percent of people in the country insured through the organisation.

Freelancers and self-employed people have to organise insurance themselves though, which can be done through the organisation of social insurance for self-employed people (Sozialversicherung der Selbständigen) or SVS

FOR MEMBERS: How to survive as a freelancer in Austria

For freelancers from overseas, navigating insurance in another language can be a daunting part of the process. 

James Tibbles, a former freelance web designer from the UK who lives in Tyrol, advises any self-employed people in Austria to seek help from an advisor when starting out.

James told The Local: “My tax advisor explained it all to me and picked out the correct one for my circumstances, so whenever I received a letter from them I just immediately passed it on to her.”

Another tip is to find an advisor that speaks a high level of English, which can be relatively easy in more metropolitan areas or regions with a strong tourism industry. 

Registering as self-employed also involves signing up with the Austrian Chamber of Commerce (WKO) who can then help you with setting up insurance with the SVS.

The key thing to remember is that health and social insurance is compulsory in Austria. So make sure it is a top priority. 

What do SVS payments cover?

SVS payments cover several aspects of health and social care. 

According to the Austrian government, social insurance payments cover: “prevention, sickness, incapacity for work/invalidity, maternity, unemployment, old age, death of a person liable to provide maintenance, survivors’ pensions, nursing care and social need.”

It basically grants people the same social insurance coverage as those on payroll.

For example, €100 of SVS payment can be broken down as €65 towards pension, €26 for health insurance, €5 towards self-employment provisions, €2 for accident insurance and €2 in administration costs.

As you can see, the largest percentage of SVS goes towards a pension, which means even though payments are considered to be high by many self-employed people, a large portion of the money is being invested.

READ MORE: How does the Austrian pension system work?

In fact, Austria’s pension system is one of the best in Europe, offering 80.9 percent of the average salary, which is only beaten by Luxembourg and Italy.

To compare, the state pension in the UK is just 28.4 percent of the average salary with experts warning that the payments don’t even cover a minimum standard of living.

As an added bonus, social insurance contributions in Austria can even be deducted from your tax bill at the end of the year (but only what you have paid so far).

Typical SVS payments

If you are self-employed in Austria, it is compulsory to pay for health and social insurance once your income exceeds €5,710.32 annually. But if you don’t reach that limit then you are exempt from paying social insurance.

The minimum contribution for those earning up to around €8,000 a year is around €160 a month. Once your salary exceeds that amount, you will be charged more. 

For the first three years, payments are calculated on a minimum contribution basis. But from the fourth year of self-employment, social insurance contributions are calculated in relation to the income in the preceding third year of business.

READ ALSO: What can I deduct from my tax bill in Austria?

However, it’s important to be aware that when first registering as self-employed in Austria there is often a delay to the start of social insurance payments.

This can mean receiving a bill several months later and having to pay six months worth of social insurance in one go. Afterwards though, you should receive SVS bills on a quarterly basis.

Useful links

SEA – The self-employed in Austria group supports self-employed individuals by delivering information in the form of guidebooks and free articles in English. 

SVS – The social insurance organisation for self-employed people in Austria.

WKO – The Austrian Chamber of Commerce is a useful source of information for self-employed people.

Useful vocabulary

Sozialversicherung – social insurance

Selbständigen – self-employed

Neue Selbständige – new self-employed

Steuer – tax

Gesundheitsversicherung – health insurance

Pensionsvorsorge  – pension provision

Unfallversicherung – accident insurance

Verwaltungskosten – administration costs

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

WORKING IN AUSTRIA

Working in Austria: What are my rights as a pregnant person?

If you work in Austria, you have several rights, particularly if you are expecting a baby. Here's what you need to know.

Working in Austria: What are my rights as a pregnant person?

Austria has many laws and regulations to protect women and their pregnancies – as long as you follow specific criteria, for example, being employed and contributing to the social security system.

If you just found out you are pregnant, here are all your rights (and responsibilities) as a paid worker in Austria. 

What are your duties?

You are obligated to notify your employer as soon as you become aware of your pregnancy – though many people wait until they receive their Eltern Kind Pass, the official document from the doctor, which they receive after around eight weeks of pregnancy. Some people will even wait until the first trimester of pregnancy has passed to notify their employers.

But once you’ve notified them – even showing a doctor’s certificate of pregnancy if your employer requests it, then the protective provisions of the Maternity Protection Act apply. 

READ ALSO: Four things you should know if you’re going to give birth in Austria

What if I am in the probationary period?

Austria’s labour laws allow for a probationary period during which the employment relationship can be quickly terminated. However, being pregnant is not a valid reason for such termination. So, if your employer has dismissed you (even if during the trial period) because you are pregnant, that is unlawful discrimination on the grounds of gender and a violation of the Equal Treatment Act, according to the Chamber of Labour.

Additionally, you are not obliged to inform the employer of your pregnancy during the trial period. 

What are your rights?

Perhaps the most essential right is the absolute protection against dismissal: if you are pregnant and have a permanent employment contract, you may not be dismissed.

Protection against dismissal lasts until four months after giving birth. If you take maternity leave, you cannot be dismissed until four weeks after the end of your maternity leave.

As a pregnant person, you also have other rights before you go on maternity leave. For example, you can be released from work before the protection period if there is a risk to you or your child’s life or health connected to your work. You must submit a medical certificate for this, though. 

READ ALSO: Austria approves changes to the mandatory ‘family passport’ Mutter-Kind-Pass

You can also request changes for your comfort and health, such as a chair if you work standing up or even a suitable bed or couch if you need to lie down and rest during work hours or a smoke-free area for your breaks (there are even more regulations regarding specific work bans you can check below).

Your working hours also become more flexible once you’re pregnant, as you are entitled to visit your doctor for examinations, especially the mandatory ones, during working hours if it is not possible or reasonable for you to have them at other times. Your employer is obliged to continue to pay you your wages or salary as usual during this time.

Work bans

The Chamber of Labour states: “Heavy lifting, stress and dangerous work are all harmful to a pregnant woman and her unborn child, which is why such activities are prohibited for pregnant women.” 

There are specific rules regarding work that is considered hazardous to health. For example, a pregnant employee may not carry out any job that requires her to regularly lift loads of more than 5 kg or occasionally lift loads of more than 10 kg without mechanical aids.

From the beginning of the 21st week of pregnancy, the employee may only perform standing work for 4 hours daily. For the remaining time, the employer must assign an occupation that can be performed sitting down. From that same week, pregnant women are absolutely prohibited from working under time and performance pressure.

Additionally, they must not work with substances, radiation, dust or vapours that are hazardous to help or carry out work under the influence of heat, cold, or moisture – or with a particular risk of accidents.

As a pregnant or nursing mother, you are not allowed to work at night, apart from a few permitted exceptions, such as in the transport sector, for music or theatre performers or for nursing staff, when expectant (and breastfeeding!) mothers may only work until 10 pm at the latest.

READ ALSO: The Austrian rules that make it hard for single women to have a baby

Following night work (from 8 pm to 6 am), they must have an uninterrupted rest period of at least 11 hours. 

It is important to note that an employee must not suffer any financial disadvantage due to the prohibition of specific work. 

Pregnant or breastfeeding mothers may not work overtime. Under no circumstances may the daily working time exceed 9 hours or the weekly working time exceed 40 hours.

READ ALSO: EXPLAINED: What you need to know about parental leave in Austria

Maternity leave or Mutterschutz

Austria has very strict rules for maternity leave, a period known as Mutterschutz, or “mother protection”. You are not allowed to work in the last eight weeks before your due date, and this maternity protection lasts for eight weeks after the child is born. 

If the protection period before childbirth is shortened because the child is born earlier, the protection period after birth is extended by the extent of the shortening to a maximum of 16 weeks.

In the case of premature births, multiple births or caesarean sections, the protection period after delivery is at least 12 weeks.

READ ALSO: Does having a baby in Austria make it easier for parents to become Austrian?

You will receive a maternity leave allowance from your health insurance fund. Your employer does not pay any wages or salary during this period, but you must inform your employer four weeks before you take maternity leave.

These protections apply regardless of the person’s citizenship, the duration of the employment relationship or the extent of the employment (for example, regarding working hours).

SHOW COMMENTS