Social security contributions are rising: Will net salaries fall in 2025?

Social security contributions are rising: Will net salaries fall in 2025?

From 2025 there will be significant changes to social security contributions in Austria, which will affect the net salary of many employees. Loud oe24 contributions increase due to inflation. The current burden of around 18 percent of the salary will be increased by 6.3 percent to 6,450 euros per month through indexation, which increases the maximum social security contribution to 90,300 euros per year. While low earners will benefit from this, there could be unpleasant surprises for higher earners with a gross salary of 6,300 euros or more, as, without salary increases, they will have less net in their pockets due to the increase in social security contributions.

Inflation and its effects

Inflation is keeping Europe on tenterhooks. Like from one Statista Analysis shows that the inflation rate in the EU and the Eurozone has fluctuated significantly since 2003, which has a direct impact on the cost of living. In times of rising prices, not only rents are affected, but also social security contributions, which are now under more pressure than ever.

In addition to increasing the maximum contribution limit, the marginal income limit will also be increased from 518.44 euros to 551.10 euros. This allows certain workers to earn a higher income without entering Social Security. These measures are part of the adjustments necessary to manage the financial burden on citizens in the face of persistently high inflation.