Dear Clients,
Summer is just around the corner, and many school pupils and students will be getting a taste of the world of work through holiday internships, jobs or voluntary placements. Correct classification is crucial for applying labour and social security law provisions correctly and avoiding undesirable tax consequences.
Summer internships (=Ferialpraktika)
‘Genuine’ summer internships are done by school pupils and students who perform practical work that is prescribed or customary within the framework of the curriculum or study regulations without receiving any monetary and/or non-monetary remuneration.
Features:
- Assignment in the company in accordance with the field of study
- No personal obligation to work or obligation to follow instructions
- No entitlement to remuneration, unless provided for in the applicable collective agreement
- No registration for social security is required
- Accident insurance through the school or student accident insurance
- If pocket money is granted, registration with the Austrian Health Insurance Fund (ÖGK) is required. Depending on the amount of remuneration, full insurance may be mandatory.
Summer Jobs (=Ferialjobs)
Holiday workers are school pupils or students who work during the school holidays to earn money. This activity is not part of a compulsory internship.
Features:
- Regular employment relationship with an employment contract
- Remuneration: The remuneration must not be less than the minimum wage stipulated in the collective agreement.
- Registration with the ÖGK is required.
- Social security obligation (health, accident and pension insurance) if the marginal earnings threshold (=Geringfügigkeitsgrenze) is exceeded (in 2025 it is EUR 551,10 per month).
- Entitlement to pro-rata special payments (e.g. holiday pay and Christmas bonus).
- Income tax liability arises from an annual income of EUR 13.981,00.
- Family allowance: An income above EUR 10,000 may affect your entitlement to family allowance
If your income is below the marginal earnings threshold (=Geringfügikeitsgrenze), you can voluntarily register as a marginally employed person.
Voluntary Work (=Volontariate)
Volunteers complete an internship on a voluntary basis, with no school or study obligations. Most of them have already completed their education, so they undertake the internship primarily for their own benefit. The work should not involve simple tasks; otherwise, social security could argue that the interns should be classified as unskilled workers.
Features:
- No obligation to work or follow instructions
- No entitlement to remuneration
- Registration with the General Accident Insurance Institution (AUVA) is required.
- If pocket money is granted, registration with the ÖGK is required, either as marginally or fully insured, depending on the amount of remuneration.
Conclusion
The correct classification of the form of employment is essential in order to avoid legal and financial risks. We are happy to help you with any questions you may have!
Best regards
Manfred Gross
Vienna, June 2025
