Increase in housing subsidy in Vienna from 2026
Since 2018, the Housing Subsidy Act has provided for the possibility that the amount of the housing subsidy can be determined independently by each federal state. So far, the federal states have not made use of this option. Unfortunately, this will change from next year: According to a resolution passed by the Vienna State Parliament on October 23, 2025, the housing subsidy in Vienna will be increased from 1% to 1.5% as of January 1, 2026, meaning that the contribution – to be borne equally by companies and employees – will rise from 0.5% to 0.75% for each party.
| ! This affects all employees earning above the monthly minimum wage threshold (€551.10) who are insured with the Vienna branch of the ÖGK or (if another social security institution is responsible, e.g., the BVAEB) whose place of employment is Vienna. |
As a result of the 0.25 percentage point increase, the social security contribution deduction on the current earnings of employees and workers in Vienna will be 18.32% (instead of the previous 18.07%) from January 1, 2026. At the same time, the non-wage labor costs to be borne by companies will also rise by 0.25 percentage points.
Additional note: It is not yet known whether other federal states will follow Vienna's example. Freelancers are not affected by the increase in Vienna's housing subsidy, as they are not required to pay any housing subsidy in the first place.