Nearly three-quarters of Austrians (72 percent) say they “often” tip, 26 percent do so “occasionally,” and only 2 percent claim they never tip. That’s according to a new study by the Austrian Hotel Association (ÖHV) based on a survey of 1,000 respondents. The amount tipped varies: about a quarter leave around 10 percent of the bill, another quarter tip 5 percent, and just over a fifth base the amount on the specific service quality.

Tips are a crucial part of income in several industries, particularly in hospitality—but also for taxi drivers and hairdressers. Against this backdrop, a public debate flared recently after media reported that Austria’s Health Insurance Fund (ÖGK) was issuing hefty retroactive demands for social insurance contributions on tips. By law, gratuities are subject to social insurance contributions.

Contribution System Varies by Region

In many cases, tip-related contributions are collected via a flat-rate system—but this can vary by industry and federal state. For example, in Vienna, waitstaff are typically subject to a flat rate of around 60 euros per month. Any tips exceeding this threshold must be fully reported for social insurance. While cash tips were once difficult to track, the growing trend of card payments means gratuities are increasingly visible in the point-of-sale system.

The ÖGK has denied launching a focused audit campaign on tips, although the topic has also caught the attention of Austria’s center-left-right governing coalition. The coalition has pledged in its program to review the often inconsistent rules across states and make them more practical. WKÖ President Harald Mahrer recently called for tips to be fully exempt from taxes and contributions. The ÖHV echoed that call, demanding an “end to unequal treatment” across different industries.

Public Strongly Supports Abolishing Tip Taxes

According to the survey, Austrians have a clear opinion: over 80 percent support scrapping social contributions on tips altogether, while only 17 percent would accept a moderate increase. The issue hits close to home for many—39 percent of respondents said they regularly receive tips in connection with their work.

The study also asked where Austrians most often tip: 87 percent in restaurants, 63 percent in hair and beauty salons, 48 percent in hotels, 47 percent for delivery services, and 38 percent in the trades—forming the “Big Five” of Austria’s tipping culture.