Since 2018, the Housing Subsidy Contribution Act (Wohnbauförderungsbeitragsgesetz) has provided the option for each federal state to determine the amount of the contribution independently. So far, the federal states have not made use of this option. This will now change in 2026, as the Vienna state parliament has decided to increase the housing subsidy contribution in Vienna from 1 % to 1.5 % from the beginning of 2026. This means that the contribution for each side - half of which is borne by companies and half by employees - will increase from 0.5 % to 0.75 %.
This applies to all female employees who are employed above the monthly marginal earnings threshold (EUR 551.10) and are insured with the Vienna regional office of the ÖGK or - if another social insurance institution is responsible, e.g. BVAEB - whose place of employment is Vienna.
As a result of the increase of 0.25 percentage points, the social security deduction from the current salaries of employees in Vienna will amount to % 18.32 from 2026 (instead of % 18.07 previously). At the same time, the non-wage labour costs to be borne by companies will also increase by 0.25 percentage points.
Freelance employees are not affected by the increase, as they do not have to pay a housing subsidy from the outset.
It is not yet known whether other federal states will follow Vienna's example.
Created: 04.11.2025
Source: Kraft & Kronberger specialised publications
Photo: Pavel Danilyuk
