Salary Arrangement for Parental Part-Time Employment

Mar 19, 2026 Benn-Ibler Rechtsanwälte

The Austrian Supreme Court (Oberster Gerichtshof, hereinafter OGH) has recently issued a decision regarding the calculation of all-in salaries when employment contracts do not specify the allocation for overtime and additional hours during parental part-time work.

In the case at hand, the plaintiff, employed full-time by the defendant, had received an all-inclusive salary that encompassed compensation for both overtime and additional hours worked. Following the birth of her daughter, she took parental leave, leading to a corresponding adjustment in her salary. The plaintiff subsequently sought further remuneration on the basis that the employment contract did not explicitly differentiate between basic salary and overtime pay.

Reduction based on actual overtime

The defendant adjusted the total salary during parental part-time employment based on the average of previously accrued overtime hours. The plaintiff contended that this approach was inappropriate, as the contract lacked a defined overtime component. Consequently, retrospective reliance on prior hours or average figures was deemed legally impermissible.

OGH Decision regarding all-in salary arrangements

The OGH has determined that, in cases involving all-in agreements lacking a specified overtime component, reductions are not permissible during periods of parental part-time employment. Compensation must be calculated based on the complete all-in salary. Furthermore, the use of averaged past overtime as a basis for salary reduction is not allowable, since the employment contract does not stipulate exact allocation provisions.

Salaries to remain unchanged throughout parental leave

If an employment contract does not explicitly allocate a portion of the all-in salary for overtime, remuneration may not be reduced during parental part-time work. It is therefore advisable for employers to ensure that all-in agreements clearly define which share of the salary is designated for overtime compensation, thereby minimizing the risk of future disputes. In the absence of such provisions, entitlement to overtime pay remains unaffected, and full payment continues to be required.

OGH 9 ObA 62/25w (19 February 2026)