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Jubilee payment provision in Austria (Jubiläumsgeldrückstellung): entitlement under collective agreements, measurement under UGB and AFRAC 27

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In brief

In Austria, jubilee payments (Jubiläumsgelder) arise from works agreements, collective agreements or special statutory rules (AFRAC 27, para. 75); the collective agreement for salaried employees in commerce, for example, provides at least one gross monthly salary after 20 years in the same business. Provisions must be made for jubilee payments (§ 198(8)(4)(c) UGB). They are recognised at the amount determined under actuarial principles; a financial-mathematical calculation is permitted unless there are significant concerns against it in the individual case (§ 211(1) UGB, AFRAC 27 para. 70). For tax purposes, the provision is permitted only for commitments under a collective agreement, a works agreement or other written, legally binding and irrevocable commitments (§ 14(12) EStG).

Entitlement
collective agreement, works agreement, law
Commerce
1 to 3.5 monthly salaries after 20 to 40 years
Measurement
§ 211 UGB, AFRAC 27 paras. 70 to 86a
Tax law
§ 14(12) EStG, 6 % discount rate

On this page

This is an English translation of the Austrian guide Jubiläumsgeldrückstellung. Quotations from Austrian sources are our translation; IAS 19 is quoted from its official English text.

Entitlement to jubilee payments

“The amount of the jubilee payments follows from the respective legal basis, e.g. works agreements, collective agreements or special statutory rules” (AFRAC 27, para. 75). Two collective agreements as examples:

Salaried employees and apprentices in commerce (1 January 2026, section H)

“For long service, the employee is granted, after employment in the same business of

  • 20 years at least 1 gross monthly salary,
  • 25 years at least 1.5 gross monthly salaries,
  • 35 years at least 2.5 gross monthly salaries,
  • 40 years at least 3.5 gross monthly salaries

as a one-off recognition payment” (H.1).

“The service anniversary is in principle due in money”; at the employee’s request and where operationally possible, conversion into time credit can be agreed by mutual consent, with “one monthly salary corresponding to 22 working days” for full-time employees (H.2 and H.2.1). “Time credits not used are to be paid out at the end of the employment on the basis of the monthly salary current at the time the employment ends” (H.2.4). In addition, for anniversaries after 10, 15, 20, 25, 35 and 40 years the employee is released from work for one or two working days with continued pay (H.3).

Metal technology industry, salaried employees (valid from 1 November 2025, § 19c)

“After uninterrupted duration of the employment, the employee is entitled to

  • 1 monthly salary on the 25th service anniversary
  • 2 monthly salaries on the 35th service anniversary
  • 3 monthly salaries on the 45th service anniversary

as a jubilee payment” (subsection 1). If the employment ends between the 40th and 45th year of service without fault on the part of the employee, the employee is entitled to “a pro rata share of 3 monthly salaries corresponding to the service completed in this 5-year period” (subsection 1). Company rules apply instead of this rule “to the extent that they are at least equally favourable overall” (subsection 2). At the employee’s request and where operationally possible, service anniversaries can be converted into time credit (subsection 2a); unused time credits are paid out at the end of the employment (subsection 2c).

Federal civil servants

“The civil servant may be granted a jubilee payment for loyal service on completing a period of service of 25 years and of 40 years. The jubilee payment amounts to 200% of the monthly salary for a period of service of 25 years and 400% for a period of service of 40 years …” (§ 20c(1) Salary Act 1956). How the Länder (states) and municipalities measure their provisions for jubilee payments under the VRV 2015 is explained in the guide Austria: states and municipalities.

Jubilee payment provision under UGB

Provisions must be made in particular for “goodwill payments, untaken leave, jubilee payments, reversion obligations and product liability risks” (§ 198(8)(4)(c) UGB). “There is no obligation to make provisions to the extent that the amounts are not material” (§ 198(8)(3) UGB).

Actuarial or financial-mathematical

“Provisions for jubilee payment commitments are to be recognised under § 211(1) UGB at the amount resulting from actuarial principles. The amount may also be determined by a financial-mathematical calculation, unless there are significant concerns against this in the individual case” (AFRAC 27, para. 70). From the explanatory notes on paras. 52 and 70:

  • There are no significant concerns “if the potential shortfall between the actuarial and the financial-mathematical calculation can be assessed as immaterial within the meaning of AFRAC 34”.
  • “Larger differences between the actuarial and the financial-mathematical calculation may arise in determining the provisions for jubilee payments, because the actuarial calculation also takes into account, among other things, leaving employment because of invalidity. For the provision for jubilee payments, this generally means that the actuarial calculation gives a lower provision than the financial-mathematical calculation.”
  • If suitable and reliable statistical information on turnover is available, “including turnover because of earlier retirement”, it must also be taken into account in the financial-mathematical calculation.
  • “The measurement used in tax law, applying a fixed percentage to the notional entitlements at the balance sheet date, is not a financial-mathematical or actuarial calculation within the meaning of this statement.”

Beneficiaries, amount, accrual period

  • “Jubilee payment provisions are to be made for employees who, by the expected end of their employment, reach the years of service required for a jubilee payment to fall due” (para. 73). Any practice of paying the jubilee payment early on retirement “must be taken into account” (explanatory notes on para. 73).
  • If several jubilee payments are provided, “each jubilee payment must be taken into account in calculating the provision” (para. 74).
  • If the jubilee payment is a percentage of the monthly salary when it falls due, “the expected development of the monthly salary up to the time the jubilee payment falls due” must be taken into account (para. 76).
  • “The accrual period begins at the time of the commitment and ends at the time the jubilee payment is paid”; for a constructive obligation, it begins “on joining the company” (para. 77).
  • Accrual method and discount rate as for pensions and severance payments (paras. 79 and 80): the entry age normal method (Teilwertverfahren) or the method of current single premiums (Verfahren der laufenden Einmalprämien); the current rate or an average rate, simplified with a remaining term of 15 years. The published values are on the page Rechnungszinssatz (in German).

Probability assumptions

The probability assumptions “must be based on a prudent assessment and represent the best possible estimate, taking into account suitable and reliable statistical bases” (para. 82). If the commitment can still be forfeited when the employment ends, the probability of turnover must be taken into account “if suitable and reliable statistical information on this is available” (para. 83). “For obligations committed in individual contracts, there is as a rule not sufficiently reliable statistical information because of the small number of beneficiaries” (explanatory notes on para. 83).

Changes in the provision

“Any change in the value of the jubilee payment provisions compared with the previous period (except from use, transfer, business acquisition and the like) is to be recognised in profit or loss” (para. 86). For the effects of a change in the biometric bases, the Override Regulation (Federal Law Gazette II No. 283/2018) applies (para. 86a).

Tax law: § 14(12) and (13) EStG

  • “A provision may be made only for commitments under a collective agreement, a works agreement or other written, legally binding and irrevocable commitments” (§ 14(12) EStG).
  • “The provision is to be made applying subsection 6 nos. 1 to 3, subsection 6 no. 6 and subsections 8 and 9 accordingly; making it under the rules of financial mathematics is permitted” (§ 14(12) EStG). § 14(6)(6) specifies “a discount rate of 6 %”.
  • If the biometric bases are changed, the difference is “to be spread evenly over three years, beginning with the financial year of the change” (§ 14(13) EStG).

Social insurance

For jubilees, § 49(3) ASVG excludes from remuneration “benefits in kind granted on the occasion of an employee jubilee or a company jubilee up to EUR 186 a year” (no. 17). § 49 ASVG does not mention jubilee payments in money.

IAS 19

In consolidated financial statements under IFRS, jubilee payments are other long-term employee benefits: “jubilee or other long-service benefits” (IAS 19.153(b)). Their remeasurements are recognised in profit or loss (IAS 19.156). More on this in the guide IAS 19 in Austria.

Sources

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