Caution When Reducing Hours for Marginally Employed Persons
ServicesOutsourcingHR & PayrollPayroll Newsletter February 2026
Reducing Hours for Marginally Employed Persons
For 2026, the marginal earnings threshold amounts to € 551.10 per month pursuant to Section 810(3) ASVG and remains unchanged; the prior year value has been “frozen” for 2026. In practice, working time is often reduced to avoid exceeding the threshold when collectively agreed wage and salary increases take effect.
| ! However, it is essential to note that any change in the extent of working time must, pursuant to Section 19d(2) Working Time Act (AZG), be made in writing, i.e., by an agreement signed by both contracting parties. |
An oral agreement, agreement by email, or, for example, via WhatsApp would generally be insufficient, as would a mere employee information sheet. Formal compliance is therefore a must, not a luxury.
Note: If the formal requirement of a written agreement is not met, the change in working time risks being legally ineffective. This can lead, particularly in payroll tax and social‑insurance audits, to significant financial consequences:
- subsequent payment of the full health and pension insurance contributions (from the first euro, not just the excess);
- the employer bears the employee’s share of social‑insurance contributions (no recourse under Section 60 ASVG).
Adverse consequences may also arise for the marginally employed person if, due to the subsequent “loss” of marginality, benefits must be repaid where marginal employment is a supplementary earnings cap (e.g., early old‑age pension).