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In short: Austrian retirement provision stands on three pillars. First pillar: the statutory pension under the ASVG, funded by a contribution rate of 22.8% of the contribution base (you pay 10.25%, your employer 12.55%), capped by the maximum contribution base of around EUR 6,930 per month (2026). Second pillar: the new severance scheme – your employer transfers 1.53% of your gross pay into an occupational provision fund. Third pillar: private provision, such as a securities account. Income from it – dividends and capital gains – is taxed at 27.5% capital gains tax. (As of 2026; when in doubt, check official sources.)

Pensions & Saving in Austria

Kontoo editorial team · Updated 06/24/2026

In Austria, retirement provision rests on three pillars: the statutory pension, occupational provision, and what you set aside yourself. This chapter explains plainly how the building blocks fit together – from ASVG contributions through the new severance scheme to a securities account with capital gains tax (KESt). It is background for understanding, not personal financial advice.

Get an overview of the first pillar: contributions to the statutory pension insurance (ASVG) flow out of your gross salary, and your pension account builds up credits each year.
Look at the second pillar: for jobs started since 2003, your employer pays continuously into an occupational provision fund – this is the new severance scheme (Abfertigung neu).
Build up the third pillar if the first two are not enough: privately saved assets, for example through a securities account with broadly diversified funds or ETFs.
Factor in tax on private investments: in Austria, capital gains and dividends are generally taxed at 27.5% KESt, which your domestic bank deducts automatically.

What matters

The Austrian provision system follows the three-pillar model. The first pillar is the pay-as-you-go statutory pension under the General Social Insurance Act (ASVG). During your working life, 22.8% of your contribution base flows into pension insurance – you bear 10.25% and your employer 12.55%. Contributions are only levied up to the maximum contribution base of around EUR 6,930 per month (2026); special payments have their own annual limit of around EUR 13,860. Each year a credit is added to your pension account (an account percentage of 1.78% of the contribution base). The later pension is derived from the total balance divided by 14, because the pension is paid out 14 times a year. The second pillar is occupational provision. Since the 2003 reform, the new severance scheme applies to new employment: your employer pays 1.53% of your gross pay (including special payments) into an occupational provision fund on an ongoing basis. This money is invested and belongs to you later – as a lump sum or as a pension. There are no contributions from you. The third pillar is private provision. This includes the state-subsidised premium-aided future provision (with a premium of 4.25% on contributions up to around EUR 3,817 per year, i.e. at most around EUR 162 in subsidy per year, as of 2026) as well as self-chosen investments on the capital market – such as a securities account with funds or ETFs. This is where capital gains tax comes in: dividends and realised capital gains from shares, funds, and ETFs are taxed at 27.5% KESt. With a domestic account, the bank withholds the tax automatically. (As of 2026; when in doubt, check official sources.)

ExampleExample of tax on the account: you sell ETF shares with a EUR 10,000 capital gain. This is subject to 27.5% KESt, i.e. EUR 2,750, leaving you EUR 7,250 net. On a dividend of EUR 1,000 you likewise deduct 27.5% (EUR 275), leaving EUR 725 net. For comparison, the first pillar: with a contribution base of EUR 3,000 per month, 22.8% – i.e. EUR 684 – flows into pension insurance, of which you as the employee bear 10.25% (EUR 307.50) and your employer 12.55% (EUR 376.50). (Figures rounded, as of 2026.)

Use the Kontoo FIRE calculator at /fire-calculator to see how regular saving compounds over decades. You can find your personal pension entitlement in your pension account on the pv.at portal or via the official portal oesterreich.gv.at.

In depth

Understanding the pension account

Since the introduction of the pension account, there is no longer a rigid maximum pension. Instead, a percentage (1.78%) of your contribution base is credited to you each year and revalued over time. The monthly pension is derived from the total balance divided by 14. You can view the current status online in your pension account at any time – a good starting point for estimating the gap to your desired pension.

Taxes and compounding in the account

The 27.5% KESt only applies once gains are realised – that is, on sale or distribution. Accumulating funds do not distribute, but even there, distribution-equivalent income is taxed on an ongoing basis. Those who invest for the long term benefit from compounding: reinvested earnings grow more over decades than the tax burden hurts. With the Kontoo FIRE calculator you can model this effect for your own saving behaviour.

Combining the three pillars sensibly

No single pillar has to carry everything. The statutory pension provides the foundation, the new severance scheme is added without any contribution from you, and private provision closes the gap to your desired standard of living. It makes sense to first know your own entitlement from pillar one before deciding how much to set aside privately.

Checklist

I know that Austrian provision stands on three pillars: the statutory pension, occupational provision, and private provision.
I know the ASVG pension contribution of 22.8% (10.25% employee, 12.55% employer) and the maximum contribution base of around EUR 6,930 per month (2026).
I understand that under the new severance scheme my employer pays 1.53% of my gross pay into an occupational provision fund.
I know that dividends and capital gains in the account are taxed at 27.5% KESt and that the domestic bank pays this automatically.

Common myths

Myth: The statutory pension is saved up in a personal account and sits there like money in a savings book.

Reality: The first pillar is pay-as-you-go: today’s contributions pay today’s pensions. The pension account is a record of credits for the entitlements you have earned, not a pool of saved-up money. (As of 2026; when in doubt, check official sources.)

Myth: With an Austrian account I have to declare share gains myself in my tax return.

Reality: With a domestic account-keeping institution, the bank automatically withholds and pays the 27.5% KESt. The tax is thereby generally settled. With foreign accounts, by contrast, you have to handle the taxation yourself. (As of 2026; when in doubt, check official sources.)

Frequently asked questions

How high is the capital gains tax on my securities account?

On dividends and capital gains from shares, funds, and ETFs, the KESt is 27.5%. Interest from savings books and current accounts, by contrast, is taxed at 25%. With a domestic account, the bank deducts the tax automatically and pays it to the tax office – so you usually do not have to declare this income separately in your tax return. (As of 2026; when in doubt, check official sources.)

What is the new severance scheme and do I have to pay for it?

The new severance scheme (Abfertigung neu) applies to all employment relationships that began after 31 December 2002. Your employer pays 1.53% of your gross pay into an occupational provision fund on an ongoing basis – there is no contribution from you. You can later have the accumulated balance paid out under certain conditions or draw it as a pension. (As of 2026; when in doubt, check official sources.)

Is the statutory pension enough on its own?

That depends heavily on your work history and your cost of living. The statutory pension is the foundation, but many people supplement it through the second and third pillars to maintain their usual standard of living. You can see your specific entitlement in your pension account. (As of 2026; when in doubt, check official sources.)

All lessons · Glossary · Editorial · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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