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Social Security Contributions – The Calculation after the Third Year

Writer's picture: Severina DitzovSeverina Ditzov

Updated: Jun 20, 2024

In this article, we explain:

  • Preliminary contribution base

  • Final contribution base

  • Voluntary Payment of Higher Contributions

  • Reduction of the Provisional Contribution Basis



One of the most significant challenges faced by self-employed individuals in Austria, and indeed one of the most daunting financial obstacles, is the recalculation of social security contributions after the third year of business. In my experience, this issue often comes from a lack of understanding of the system, which subsequently results in a failure to adequately plan for the future. 

So, let's delve deeper into this topic and try to prevent any unpleasant surprises down the road.



Preliminary contribution base

During the first three years of self-employment, the preliminary contribution base is determined either by the minimum contribution base (€ 518.44 for 2024) or by your own estimation of your income for the year (Adjustment of contribution base: https://www.svs.at/cdscontent/?contentid=10007.816711&portal=svsportal ). After the third year, the preliminary contribution base is calculated based on your most recent tax assessment. 

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