Insurance and Provision
In Austria there is a system of compulsory insurance for all those in employment. Compulsory insurance begins as soon as the legal conditions (e.g. payment over the marginal earnings threshold) have been fulfilled.
Depending on the group of persons involved, there are different insurance laws:
Compulsory insurance according to the General Social Insurance Act (Allgemeines Sozialversicherungsgesetz, ASVG)
- Non-standard contract holders, i.e. quasi-freelancers
- Home workers
- Board members and managing partners of companies with the legal forms AG or GesmbH
- Children who work in their (grand-)parents' company without receiving pay.
Compulsory insurance according to the Act on Social Insurance for Businesses (Gewerbliches Sozialversicherungsgesetz, GSVG):
- Members of the Austrian Economic Chamber: sole traders as well as contract workers (with a trade licence), shareholders of companies with the legal form of an OG, general partners of a KG, or shareholders or managing directors of a GesmbH (similar to a limited company).
Compulsory insurance according to the Act on Social Insurance for the Liberal Professions (Freiberufliches Sozialversicherungsgesetz, FSVG)
- Patent lawyers
Compulsory insurance according to the Act on Social Insurance for Farmers (Bauern-Sozialversicherungsgesetz, BSVG):
Farmers and their family members.
Pension provision in Austria is based on three ‘pillars': statutory pension insurance, company pension schemes and voluntary private pension schemes.
Alongside statutory compulsory insurance for all those in work, company and private pension schemes also contribute towards financial security and the maintenance of living standards.
Company pension schemes
Company pension schemes are a voluntary social benefit on the part of employers. In this way, an additional pension entitlement can be acquired within the framework of an employment relationship. If an employment relationship is terminated, the entitlement of the employee remains.
In the form of the Company Pensions Act (Betriebspensionsgesetz, BPG) there are special labour law provisions on company pension schemes.
The BPG stipulates four forms of commitments to company benefits:
- Pension fund commitments related to domestic or foreign pension funds
- Company collective pension insurance
- Commitments to direct payments
- Life insurance policies.
What these defined benefit schemes have in common is that they supplement the old-age, invalidity, disability and survivors' pensions of the statutory pension insurance system.
Voluntary private pension provision
Various insurance companies offer a range of products for private pension provision. Each consumer has to decide themselves whether this is necessary and meaningful in addition to statutory pension provision.