Payroll accounting 2026

The most important changes:

This is what companies need to know now

Payroll accounting in 2026 is facing one of the most comprehensive years of reform in recent times. Numerous legal changes in labor law, tax law, and social security will come into effect simultaneously and will directly impact HR processes, payroll accounting, and personnel planning .

Particularly relevant are new regulations on partial pensions , stricter rules on educational leave and part-time education , adjustments to phased retirement , new notice periods for freelancers, and changes in tax and social security law.

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This overview shows the most important changes to payroll accounting in 2026 – understandable, practical and concise.

1. Partial pension from 2026: New flexible transition into retirement

Partial retirement will be introduced from January 1, 2026 , partially replacing existing phased retirement models. The aim is a flexible and financially sustainable transition into retirement.

Employees can reduce their standard working hours by 25 to 75 percent . Depending on the extent of the reduction, a partial pension of 25%, 50%, or 75% is granted. The basis for this is the predominant working time performed in the last year.

There is no legal entitlement – the partial pension must be agreed upon by mutual consent between employer and employee. Individuals receiving an old-age pension or disability pension are excluded.

Advantages of partial pension for companies and employees

• no wage compensation and no fictitious contribution bases

• no complicated refund process

• Severance pay remains based on the previous full-time rate.

• Voluntary resignation for partial retirement does not negatively affect severance pay.

  
  

Key risks in payroll accounting

If working hours decrease more than agreed upon, or if self-employment exceeding the insurance threshold is pursued in addition, the partial pension is forfeited. Furthermore, two sources of income arise, necessitating a mandatory income tax assessment .

2. Partial retirement 2026: Restrictions and reduced funding

Partial retirement will remain, but will become significantly less attractive:

• Replacement rate will drop to 80% from 2026 onwards.

• Maximum term from 2029 onwards will only be 3 years

• Secondary employment is only permitted if it existed regularly in the last year.

• Partial retirement will only be possible with one employer in the future.

For companies, this means that partial retirement will become increasingly the exception in 2026 and requires careful planning.

3. Educational leave and part-time education: New rules from 2026

From 2026 onwards, stricter requirements will apply to educational leave and part-time educational leave :

• Minimum employment period increases to 12 months

• Agreements must include educational level, measure and educational goal.

• Further training allowance is replaced by a further training grant .

The allowance ranges from €40.40 to €67.94 per day , depending on income. There is no legal entitlement – it is allocated on a first-come, first-served basis. A mandatory employer contribution is provided for those with higher prior income.

The agreement will come into effect on January 1, 2026 , with payments expected to begin in May 2026 .

4. Freelancers: New notice periods and collective agreements

New notice periods will apply to freelancers from 2026 onwards :

• 4 weeks' notice period during the first 2 years

• 6 weeks' notice period from the 3rd year onwards.

In addition, the introduction of collective agreements for freelance workers will be made possible. The employment contract must henceforth include the applicable collective agreement .

5. Tax Law 2026: Important Changes for Payroll Accounting

The 2025 Budget Accompanying Act introduces relevant tax changes:

• The commuter euro increases to 6 euros per kilometer.

• Social security reimbursement increases to 750 euros

• Employee bonus 2025 :

  • up to 1,000 euros tax-free

  • Payout by February 2026

  • Differentiation based on performance or qualification is possible

  • no exemption from payroll taxes

• From 2026 onwards, only 10 hours of overtime per month will be tax-free.

• Partial return of cold progression

6. Social Security 2026: New Values and Special Regulations

Social security will also be adjusted:

• E-card service fee increases to 25 euros

• The de minimis threshold remains at 551.10 euros.

• Nursing professions are considered heavy work if less than 50% of the work is administrative.

• In Vienna, the housing subsidy contribution increases to 1.5%.

• New rules for parallel marginal employment

7. Tipping 2026: Statutory flat rate coming

From 2026 onwards, the flat-rate tipping fee will be regulated by law for the first time .

The flat rates are set on an industry-by-industry basis ; initial models exist for the catering and hotel industries .

Employers will in future be required to ensure full transparency regarding the distribution of tips – an important point for control and traceability in payroll accounting.

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Conclusion: Prepare for payroll accounting in 2026 early.

The legal changes coming into effect in 2026 make early preparation in HR, payroll, and wage accounting essential. New models, modified subsidies, and stricter requirements necessitate adapted processes, clear agreements, and up-to-date systems .

Companies that address payroll accounting in 2026 in a timely manner reduce risks and create planning security for employees and the organization.