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Austrian wage system spoils people’s work in full-time jobs

January 24, 2023
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Two part-time jobs bring in more net money in Austria than one full-time job. This is due to our unattractive wage system. In hardly any other European country does the employee or the worker pay as much as in Austria if he pursues a full-time job. Word should have gotten around, because according to a study by Agenda Austria, more people work in Austria than ever before. However, there have never been as many in part-time jobs as is currently the case.

For example, if someone wants to increase their employment relationship from 20 to 30 hours per week, they will work 50 percent more and earn half more gross. However, that person only has 32 percent more net – thanks to the higher rising social security and wage tax payments. Agenda Austria made this comparison and found out why more and more people are striving for part-time jobs. Two of them bring more than a full-time job.

But this is not the case everywhere. In Sweden and Denmark – two high-tax countries – one would earn a whopping 43.8 percent more compared to 32 percent. If this doesn’t change soon, the labor shortage will only get worse. Dénes Kucsera is convinced of that. “If we want to get the labor shortage under control, it must be worthwhile to work more,” explains the economist at Agenda Austria.

Tags: AustrianfulltimejobsPeoplesspoilssystemwagework

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