Taxing Wages 2023

Austria

Abstract

This chapter includes data on the income taxes paid by workers, their social security contributions, the family benefits they receive in the form of cash transfers as well as the social security contributions and payroll taxes paid by their employers. Results reported include the marginal and average tax burden for eight different family types.

Methodological information is available for personal income tax systems, compulsory social security contributions to schemes operated within the government sector, universal cash transfers as well as recent changes in the tax/benefit system. The methodology also includes the parameter values and tax equations underlying the data.

The Austrian currency is the Euro (EUR). In 2022, EUR 0.96 was equal to USD 1. In that year, the average worker in Austria earned EUR  52 666 (Secretariat estimate).

1. Personal Income Tax

1.1. Central government income tax

1.1.1. Tax unit

Each person is taxed separately. However, the Austrian taxation system follows the “ability-to-pay” principle. Several tax reliefs depend on non-personal characteristics but requirements related to special life circumstances, including such connected to the family situation given.

1.1.2. Tax allowances

1.1.2.1. Standard tax reliefs

• Work related expenses: a tax allowance of at least EUR 132 is available to all employees.

• Social security contributions and connected contributions (see Section 2).

1.1.2.2. Non-standard tax reliefs

• Mainly work related expenses (‘Werbungskosten’) are - if qualified - deductible in the amount effectively expended.

• Traffic relief depending on the distance between home and working place as well as the availability of public transport.

The following allowances are deductible from income (EUR per year):

 

		Public transport
		Available	Not available
more than	2 km	0	372
more than	20 km	696	1 476
more than	40 km	1 356	2 568
more than	60 km	2 016	3 672

• Tax-free wage supplements exist for dirty, hard, dangerous, night, weekend and holiday work and overtime. The supplement for 10 hours of overtime up to EUR 86 per month is tax free, while other supplements are tax free up to EUR 360 (EUR 540 for night work) per month:

• Special expenses (‘Sonderausgaben’): Tax allowances for contributions to state-approved churches up to EUR 400 per year and for donations up to 10% of income for research and humanitarian purposes, environmental protection, fire brigades, civil protection, etc.

1.1.3. Rate Schedule

Since 2022 the tax schedule is:

 

Income (EUR) up to	Marginal rate %
11 000	0
18 000 31 000	20 32.5
60 000 90 000 1 000 000	42 48 50
Above	55 *)

* The top marginal tax rate of 55% applies only until 2025.

There is a special taxation other than the normal tax schedule for Christmas and leave bonus to the extent that their sum does not exceed two average monthly payments (1/6 of current income) or EUR 83 333. Otherwise the tax amount is calculated according to the following formula:

 

Income from Christmas and leave bonus (EUR) up to	Marginal rate %
2 000 2 345	0 30
25 000	6
50 000	27
83 333	35.75
Above	50/55

If income for Christmas and leave bonus exceeds EUR 83 333, the exceeding amount is added to current income and taxed accordingly using the regular rate schedule (MTR of 50% or 55%, see above).

1.1.4. Tax credits

1.1.4.1. Standard tax credits:

• Traffic (commuting) tax credit of up to EUR 1 050, composed by the basic traffic tax credit of EUR 400 and a supplement of EUR 650. In the case of a current income above EUR 16 000, the tax credit is faded out uniformly to EUR 400 for income above EUR 24 500. For commuters with a traffic allowance (see 1.1.2.2.) the basic traffic tax credit is EUR 690. Thus, the deductible amount accumulates to a maximum of EUR 1 090.

  If the overall income tax liability of current income is negative, a refund of social security contributions applies. The refund amounts to the absolute value of the negative result of the tax calculation for current income, limited to 55% of overall social security contributions paid. The refundable amount is capped at EUR 1 150 (the case for commuters with a traffic allowance earning below EUR 16,000). The standard case, however, on

  allows a refund of up to EUR 1 050. However, this threshold does not apply in 2022

• For 2022 a one-time inflation tax credit of EUR 500 is introduced. The tax credit is faded out to zero uniformly for current income between EUR 18,200 and EUR 24 500.

  If the overall income tax liability of current income is negative, a refund of social security contributions applies. The refund amounts to the absolute value of the negative result of the tax calculation for current income, limited to 70% of overall social security contributions paid. The maximum refundable amount in 2022 is EUR 1 550. The payable amount covers the basic traffic tax credit, the supplement to the traffic tax credit and the inflation tax credit.

The following tax credits exist for tax payers with children:

• Non-payable family tax credit of EUR 2 000 each child (EUR 650 if the child is older than 18 years). There exist several options for allocating the credit between the eligible parties. The parents can split up the tax credit one half each or one parent receives the full benefit. The allocation can be defined for each child separately.

• Child tax credit of EUR 700.8 (EUR 58.40 per month) per child. This tax credit is paid together with child allowances and is not connected with an income tax assessment. Therefore, it is treated as a transfer in this Report (similar treatment as in the OECD Revenue Statistics). Sole earner or single parent tax credit for families with children: The sole earner credit is not given when a spouse’s yearly income exceeds EUR 6 000. The single parent credit is not granted if the parent lives more than 6 months per calendar year with a partner. This tax credit is EUR 494 for one child and increases by EUR 175 for the second child and by EUR 220 for the third and every additional child. This tax credit is non-wastable and can be paid as a negative income tax (in addition to the refund of social security contributions in respect of the traffic tax credit).

• Tax payers with an income tax liability below EUR 550 receive an additional transfer, the so-called ‘Kindermehrbetrag’. If the income tax liability (exclusive of tax credits) is lower than EUR 550 (in the case of one child), the difference of EUR 550 and the correspondent tax liability is refunded. The maximum amount payable is EUR 550 for each child.

1.1.4.2 Non-standard tax credit

• Additional traffic tax credit in case of entitlement to traffic relief according to the distance between home address and working place (see 1.1.2.2.). In this case employees are entitled to an additional traffic tax credit of EUR 2 per km distance from home to working place.

• Tax payers who make legally required alimony payments to their child qualify for an alimony tax credit of EUR 350 (EUR 29.2 per month). For a second child, the credit is EUR 43.8 per month. For every other child the monthly deductible amount is EUR 58.4. The alimony tax credit is non-payable.

• A tax credit for retired persons which amounts to EUR 1 214 for single earners with income up to EUR 19 930 if the spouse’s income does not exceed EUR 2 200. Otherwise, the tax credit is EUR 825. The tax credit is linearly reduced to 0 for incomes between EUR 17 500 (EUR 19 930 for sole earners) and EUR 25 500. If the income tax liability is negative, a refund of social security contributions applies. The refund is limited to 80% of total social security contributions paid, respectively to EUR 550.

1.2. State and local income taxes

None.

2. Compulsory Social Security Contributions to Schemes Operated within the Government Sector

2.1. Employee and Employer Social Security Contributions

 

	Ceilings (EUR)		Rates (%)
	Regular wage per month	Christmas and leave bonus	Employee (2)	Employer (3)
Health insurance	5 670	11 340	3.87	3.78
Unemployment insurance	5 670	11 340	(4)	3.00
Pension insurance	5 670	11 340	10.25	12.55
Accident insurance	5 670	11 340	--	1. 20
Contribution to the labour chamber	5 670	(1)	0.50	--
Contribution for the promotion of residential building	5 670	(1)	0.50	0.50
Addition to secure wage payments in the case of bankruptcy	5 670	11 340	--	0.1

1. No contribution on Christmas and leave bonus. In Revenue Statistics, the contribution to the labour chamber is accounted under Taxes on Income of Individuals (1110). The total of contributions for the promotion of residential buildings is included in Taxes on payroll (3000).

2. There is an income threshold for employee contributions of EUR 485.85 per month.

3. A new program has been introduced on 1 January 2004 for severance payments. Employers are required to pay 1.53% of gross wages for employees whose employment started after 1 January 2003. of if the employer and employee opt to participate in the new program. This contribution is seen as a non-tax compulsory wage-related payment.

4. Employees’ unemployment insurance rate is lower for small incomes. In 2022, it is zero for monthly earnings up to EUR 1 828, 1% up to EUR 1 994, 2% up to EUR 2 161 and 3% above.

2.2. Payroll taxes

There are two payroll taxes which are levied on employers for all private sector employees with a monthly gross wage total of more than EUR 1 095: the contribution to the Family Burden Equalisation Fund (3.9%) and the Community Tax (3%). If the assessment basis does not exceed 1460 EUR per calendar month, it is reduced by 1095 EUR. The wage-dependent part of the contribution to the Austrian Economic Chamber (listed under heading 1000, Taxes on profits, OECD Revenue Statistics), which is levied, together with the contributions to the Family Burden Equalisation Fund, at different rates depending upon the Länder Chamber (average rate is approximately 0.4%), is not taken into account. The contribution for the promotion of residential buildings (listed under heading 3000, Taxes on payroll, OECD Revenue Statistics) is included in the social security contributions shown above. It is levied by the Health Insurance Companies on monthly (current) income) along with the other social security contribution amounts.

3. Universal Cash Transfers

3.1. Transfers related to marital status

No recurrent payments.

3.2. Transfers for dependent children

A family allowance is granted for each child. The monthly payment is EUR 114.00 for the first child, EUR 128.20 for the second, EUR 152.00 for the third and is further increased for each additional child. It rises by EUR 7.90 for children above 3 years of age, EUR 27.50 for children above 10 years of age and by EUR 51.10 for students (above 19 years of age). The taxing wages calculations only consider households with 2 children aged between 6 and 11 inclusive.

Parents are entitled to a childcare transfer, introduced in 2002. The flexibility of the childcare transfer was again increased significantly. The entitled parent can choose the period of payments between 365 and 851 days (if they split up parental leave: 456 and 1 063 days) resulting in a transfer of EUR 14.53 (in case of 851/1,063 days) to EUR 33.88 per day (in case of 365/456 days). Also, instead of fixed amounts the parents can opt for 80% of the last net-earning, limited to EUR 66 per day (14 months; 12 plus 2). Additionally, parents receive a bonus of EUR 1 000 if the period of transfer payments is split at least at a ratio of 40:60 between parents.  

The child tax credit (EUR 58.40 per month, see section 1.1.4) is paid together with the family allowance and therefore treated as a transfer.

There is a supplement to the family allowance of EUR 20.00 per month for the third and every additional child if the family’s taxable income (i.e. the sum of the tax base for the progressive income tax schedule) in the preceding year did not exceed EUR 55 000. This supplement is paid on application after a tax assessment of the very year.

An additional family allowance (“13th family allowance”) of EUR 100 is given for children in the age between 6 and 15 years every September.

Due to the COVID-19 pandemic parents are entitled to additional EUR 360 family allowance each child in 2020. For beneficiaries of minimum income or social transfers, an additional EUR100 are paid out in 2020 and 2021, respectively.

For August 2022 an additional family allowance of EUR 180 is given.

3.3. Other cash transfers

With the eco-social tax reform 2021 a national emissions certificate trading scheme covering non-ETS sectors has been introduced. The system comprises a regional climate bonus to compensate for the resulting additional burden on households. For 2022, every Austrian resident (primary residency for at least 6 months in the calendar year) is entitled to a direct payment of EUR 250 per person. Children up to the age of 18 years receive half the amount.

For 2022 a supplement to the climate bonus is paid: the anti-inflation bonus. For income tax purposes, this bonus of EUR 250 is only defined as tax-exempt up to a yearly taxable income of EUR 90 000. Above this threshold, the bonus is taxed at the applicable rate. For children up to the age of 18 years a tax-exempt bonus of EUR 125 is paid.

To combat the rising energy prices, an energy cost credit worth EUR 150 can be redeemed by each household in 2022. The bonus is not granted above a certain income threshold. For single-occupancy households this threshold is set at EUR 55 000 per year (gross annual income after deduction of the SSCs and allowable expenses). In the case of multi-occupancy households, the threshold is EUR 110 000.

4. Main Changes in Tax/Benefit Systems Since 2004

In 2004, the first step of a comprehensive tax reform came into force. The general tax credit was increased from EUR 887 to EUR 1 264 and the phasing-out rules were considerably simplified and harmonized for all groups of taxpayers.

The tax reform in 2005 brought a new income tax schedule. Apart from the top rate of 50% for incomes exceeding EUR 51 000, it shows the average tax rate for two amounts of income. The tax amounts for incomes between these values have to be calculated by linear interpolation. The formulas that have to be applied are defined in the tax law. The tax reform included some measures which were made retrospective for 2004. These measures are an increase of the sole earner and the single parent tax credit depending on the number of children (together with a higher income limit for the spouse of a single earner) and an increase of traffic reliefs by about 15%. The maximum deductible amount for church contributions was increased as well. In 2006, the traffic reliefs were raised again by about 10%.

In 2007, the traffic allowance was increased by 10% (effective from 1st July). Additionally, the maximum negative tax for employees with traffic allowances was raised from EUR 110 to EUR 240 (for 2008 and 2009). In 2008, the family allowance for the third child and all subsequent children was increased. Furthermore, the unemployment insurance contribution of low-earning employees was reduced (effective from 1st July). Also in 2008, for monthly earnings up to EUR 1 100 the rate was set to zero, for earnings below EUR 1 200 the contribution was set to 1%, below EUR 1 350 2% and above it was set to the current rate of 3%. Since 2008, these income limits have been raised according to the increase of the ceiling levels of social security contributions every year.

In September 2008, the parliament decided some measures to compensate for the strong increase of food and energy prices: inter alia, the tax exemption of overtime supplements was increased and the 13th child allowance was introduced.

The tax reform 2009 (effective from the 1st of January) brought an increase of the zero bracket (from EUR 10 000 to EUR 11 000), a reduction of the marginal income tax rates (except the top rate), an upward shift of the top rate bracket (from EUR 51 000 to EUR 60 000) and several measures for families with children: child allowance (EUR 220 or EUR 132 each parent p.a.), deductibility of cost for child care (up to EUR 2 300 p.a. per child), tax-free payments (up to EUR 500 p.a.) from employers to their employees for child care and an increase of the child tax credit.

Starting in 2013 a progressive rate schedule is applied to Christmas and leave bonus instead of a flat rate regime of 6% (see 1.1.3.)

The tax reform 2016 decreased all marginal tax rates significantly, notably the marginal tax rate of the first tax bracket, which was reduced by 11.5 percentage points from 36.5% to 25%. Limited to the years 2016 to 2020 the top marginal tax rate is temporarily increased by 5% points to 55%. These 55% apply to those parts of income exceeding EUR 1 million a year.

The tax credit for employees was increased from EUR 345 to EUR 400. The non-wastable tax credit (reimbursement of social security contributions) for low earnings was extended. For employees the non-wastable tax credit was increased to a maximum of 50% of social security contributions up to a ceiling of EUR 400 a year. For commuters eligible for the commuter tax allowance the maximum amount of the non-wastable tax credit is EUR 500. This system of a non-wastable tax credit was extended to pensioners too, limited to EUR 110.

Besides the already existing broad financial support for families (payable tax credit and transfers as well as deductibility of cost for child care) the tax reform 2016 increased the tax allowance for children from EUR 220 to EUR 440 per child. If both parents claim for this tax allowance, it increases to EUR 600 (two times EUR 300).

Tax expenditures (tax allowances) for private insurances (e.g. health and pension insurances) and mortgages were abolished for new contracts beginning with 2016. For existing contracts these tax allowances are maintained for a transitional period of five years.

In 2019 a non-payable family tax credit of EUR 1 500 each child (EUR 500 if the child is older than 18 years) was introduced. The parents can split up the tax credit one half each. Sole- or single-earner with low income, who cannot fully participate on that non-payable family tax credit, can apply for a payable sole- or single-earner family tax credit up to EUR 250 each child.

In 2020 the positive entrance rate of the tax rate schedule was reduced to 20% and the refund of social security contributions for low earners was increased.

From 2021 on, the standard tax allowance for special expenses of EUR 60 was abolished.

From 2022 on, the supplement to the traffic tax credit is raised from EUR 400 to EUR 650. In case of a negative income tax liability, the refund is capped at 55% of overall social security contributions paid or a maximum of EUR 550.

The non-payable family tax credit is increased to EUR 2000 for each child (EUR 650 if the child is older than 18 years). From now on the maximum amount payable by child via the so-called `Kindermehrbetrag’ is EUR 550. Also the definition of eligible recipients has been expanded and is not limited anymore to qualifiers for sole- or single earner tax credits.

Several new (mostly one-time) tax credits and cash transfers have been introduced:

• An inflation tax credit of EUR 500 that is faded out uniformly to zero for current income between EUR 18 200 and EUR 24 

• 500. In case of a negative income tax liability, the refund for 2022 is limited to 70% of overall social security contributions paid (max. refundable amount: EUR 1 550).

• The `climate bonus’: direct, tax-free lump-sum payment of EUR 250 per person. Children up to the age of 18 years receive half the amount. The stated amount applies only for 2022.

• A one-time supplement to the climate bonus (the anti-inflation bonus). Payment of EUR 250 that is tax-exempt up to a yearly taxable income of EUR 90 000. Again, for children only EUR 125 are paid.

• An energy cost credit worth EUR 150 (only for households with adjusted gross annual income of EUR 55 000 (single household) or EUR 110 000 (multiple earners)). This cash transfer is a one-time measure to counteract risen energy prices.

  • An additional family allowance of EUR 180 is given in August 2022.

4.1. Changes to labour taxation due to the COVID-19 pandemic in 2020 and 2021

Due to the COVID-19 pandemic the already planned reduction of the entrance rate of the tax rate schedule from 25% to 20 was set into force retroactively with beginning of 2020 (see 1.1.3.).

Extraordinary bonuses in connection with the pandemic up to EUR 3 000 are exempted from income-taxation in 2020.

In the case of reduced-working hours, home-office or prevented work attendance due to the COVID-19 pandemic tax exemptions or specific allowances (e.g. extraordinary payments for dirty, hard, dangerous, night work, payments for overtime, higher commuting allowance, etc.), which are normally included in the wage-bill of an employee, are exempted nevertheless the employee is not able to fulfil his work during the pandemic.

In response to the increased popularity of working from home two new specific legal regulations have been introduced. First, expenses for ergonomic office furniture (e.g. desks, swivel chairs or desk lamps) are tax-deductible in a sum of up to EUR 300 per year. Second, to compensate for additional expenses, a lump-sum allowance of EUR 3 per day worked from home can be deducted. This is possible for a maximum of 100 home office days per year. Thus, up to EUR 300 per year and employee can be left tax-free. One option is that the employer can pay out up to 3 euros per home office day tax-exempt. If the tax-free maximum amount of EUR 3 per day is not used up or if the employer does not grant a lump sum at all, the employee can claim the difference as income-related expenses.

5. Memorandum Items

5.1. Calculation of Earnings Data

• Sector used: All private employees except apprentices employed full-time for the whole year

• Geographical coverage: Whole country

• Sex: Male and Female

• Earnings base:

  • Items excluded:

    • Unemployment compensation

    • Sickness compensation

  • Items included:

    • Vacation payments

    • Overtime payments

    • Recurring cash payments

    • Fringe benefits (taxable value)

• Basic method of calculation used: Average annual earnings

• Income tax year ends: 31 December

Period to which the earnings calculation refers to: one year.

2022 Parameter values

 

Average earnings/yr	Ave_earn	52 666
Non current income as %	non_cur_pc	14.29%
Tax schedule for nci	nci_sch	0	2 000
		0.3	2 345
		0.06	25 000
		0.27	50 000
Maximum non-current income tax base	nci_base_max	0.3575	83 333
Work related	work_rel	132
Family tax credit	fam_cr	2 000
Sole-, single earner family tax credit	fam_cr_sole	550
Max. neg. employee's tax credit	neg_wage_cr	1 550
Max. neg. employee's tax credit rate	neg_wage_cr_rate	70%
Traffic (commuting) tax credit	traffic_cr	400
Supplement to traffic (commuting) tax credit	traffic_cr_sppl	650
Lower Limit of traffic tax credit	traffic_cr_ll	16 000
Upper Limit of traffic tax credit	traffic_cr_ul	24 500
Children suppl.to SETC: 1st child	dsole1_cr	494
2nd child	dsole2_cr	175
3rd+ child	dsole3_cr	220
Spouse with children	sole_lim1	6 000
Income tax schedule	Tax_sch	0	11 000
		0.20	18 000
		0.325	31 000
		0.42	60 000
		0.48	90 000
		0.50	1 000 000
		0.55
Ceiling f. soc. security contributions	SSC_ceil	5670
lower limit	SSC_low	485.85
Employees' contr. rates	health_rate	3.87%
	unemp_rate	0.00%	1 828
		1.00%	1 994
		2.00%	2 161
		3.00%
	pension_rate	10.25%
sum without unempl. and others	empl_14	14.12%
	others_rate	1.00%
Employers' contr.rates	health_empr	3.78%
	unemp_empr	3.00%
	pension_empr	12.55%
	accident_empr	1.20%
	payinsur_empr	0.1%
sum without others	empr_14	20.88%
	others_empr	0.50%
Payroll taxes	payroll_rate	6.90%
Child benefit: 1st child	CB_1	1 368.0
2nd child	CB_2	1 538.4
suppl.>=3years	CB03sppl	94.8
suppl.>=10years	CB10sppl	330.0
5<suppl<16	CB6to15	100
Child tax credit	child_cr_1	700.8
Child benefit year 2022	CB_2022	180
Compensation of energy costs	energy_2022	150
Upper limit for compensation of energy costs	energy_2022_ul	55 000
Climate bonus 2022	klima_2022	250
Supplement to the climate bonus for 2022	klima_sppl	250
Upper limit for tax-free supplement to the climate bonus	klima_sppl_ul	90 000
Climate bonus <18years	klima_2022_child	125
Supplement to the climate bonus for 2022	klima_sppl_child	125
Inflation tax credit	inflation_cr	500
Lower Limit of inflation tax credit	inflation_cr_ll	18 200
Upper Limit of inflation tax credit	inflation_cr_ul	24 500

2022 Tax equations

The equations for the Austrian system are, in principle, on an individual basis. The only variable which is dependent on the marital status is the head of family (sole earner) tax credit, which is also given to single parents. For the Christmas and leave bonus (both amounting to one monthly wage or salary) there are special rules for the calculation of social security contributions (separate ceilings and slightly lower rate) and wage tax (reduced flat rate). The income tax schedule and the tax credits are applied only for "current pays". The child tax credit is in principle given to the mother (as a negative tax together with "family allowances" = transfer for children). The sole earner and the employee tax credit are connected with negative income tax rules. Therefore, the tax finally paid may be different from tax liability minus tax credits.

 

Bn	Variable	code for docn equations	Excel-Function
3	earnings (%AW)	percent	0, 67%, 1 or 167% in Taxing Wages output tables (but model can be applied to all earnings levels)
4	number of children	child	0 or 2 in Taxing Wages output tables
5	Gross earnings	earn	=Ave_earn*percent
6	Current income	cearn	=(1-non_cur_pc)*earn
89	SSC on curr.inc.	SSCc	=IF(cearn/12>=1460;(empl_14+unemp(earn,unemp_rate)+others_rate)* MIN(12*SSC_ceil;cearn)*(cearn>12*SSC_low);(empl_14+unemp(earn,unemp_rate)+others_rate)* ((cearn/12-1095)*12)*(cearn>12*SSC_low))
10	Work related expenses	work_rel	=(earn>14*SSC_low)*work_rel
12	Tax base for schedule	ctbase	=IF((cearn-SSCc-work_rel)+max(0;ncearn-SSCnc-nci_base_max)<=klima_sppl_ul;(cearn-SSCc-work_rel)+max(0;ncearn-SSCnc-nci_base_max);(cearn-SSCc-work_rel)+max(0;ncearn-SSCnc-nci_base_max)+klima_sppl)
13	Gross tax on current income	gtaxcur	=Tax(ctbase;tax_sch)
15	Married or head of family	headcr	IF(Married=0,(Children>0)*((Children>0)*dsole1_cr+(Children>1)*dsole2_cr+(Children>2)*(Children-2)*dsole3_cr),IF(cearn_s-SSCc_s-work_rel_s<=IF(Children>0, sole_lim1,0), ((Children>0)*dsole1_cr+(Children>1)*dsole2_cr+(Children>2)*(Children-2)*dsole3_cr), 0))+MAX(0,Children*fam_cr_sole-gtaxcur_p)
16	Children	fam_cr	=Max(gtaxcr;fam_cr*child) in the case of single person =MaxFABO(gtaxcur principal;gtaxcur spouse;1) in the case of parents
17	Other	othcr	=(B5>14*SSC_low)*(traffic_cr+MIN(1;MAX(0;(traffic_cr_ul-B12)/(traffic_cr_ul-traffic_cr_ll)))*traffic_cr_sppl+MIN(1;MAX(0;(inflation_cr_ul-B12)/(inflation_cr_ul-inflation_cr_ll)))*inflation_cr)
18	Interm. tax on current income	itcur	=gtaxcur -headcr-othcr
19	Net tax on current income	ntaxcur	=max(gtaxcur-btaxcr-other;-neg_wage_cr_rate*SSC;-neg-wage_cr)-child>0)-headcr
20	Non current income	ncearn	=earn-cearn
21	SSC on non-curr. inc.	SSCnc	=(health_rate+unemp(earn,unemp_rate)+pension_rate)* MIN(2*SSC_ceil;ncearn)*(ncearn>2*SSC_low)
22	Tax base for non-current income	ncearn_adj1	=min(ncearn-SSCnc;nci_base_max)
23	Tax schedule	nci_sch	=min(ncearn-SSCnc;nci_base_max)
24	Taxable income	taxinc	=ctbase+ncearn_adj1
25	Tax liability excl. tax credits	inctax_ex	=gtaxcur+taxnc
26	Income tax finally paid	inctax	=ntaxcur+taxnc
27	Employee's SSC	SSC	=SSCc+SSCnc
28	Employer's SSC	SSCf	=IF(earn'/14>=SSC_low;((empr_14+others_empr)*MINA(12*SSC_ceil;cearn)+empr_14*MINA(2*SSC_ceil;ncearn));earn*accident_empr)
29	Pay-roll taxes	payroll	=payroll_rate*earn
30	Cash transfers	cash	=klima_2022+IF((cearn-SSCc-work_rel+MAX(0;ncearn-SSCnc-nci_base_max))<=klima_sppl_ul;klima_sppl;0)+WENN((cearn-SSCc-work_rel)+max(0;ncearn-SSCnc-nci_base_max)<=energy_2022_ul;energy_2022;0)
31	Cash transfers for dependent children	cash_child	=IF(B4=0;0;IF(B4=2;CB_1+CB_2+2*(CB10sppl+CB6to15+child_cr_1+CB_2022+klima_2022_child+klima_sppl_child)))
32	Take-home pay		=earn-inctax-SSC+cash+cash_child
33	Wage cost		=earn+SSCf+payroll

Unemp is a Visual Basic Function which chooses lower unemployment SSC rates for low earnings.

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis.