Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Discover the comprehensive range of employer obligations and employee benefits in Austria through the services of an Employer of Record. From managing the payroll cycle and ensuring compliance with employer and employee contributions, to navigating minimum wage regulations and handling the hiring process for employees, contractors, and expats, an Employer of Record in Austria can assist with background checks, employment contracts, onboarding procedures, social security coverage, healthcare and insurance provisions, leave policies, public holidays, work permits and visas, probation periods, notice periods, termination and severance regulations, as well as personal income tax requirements.
| Overview | |
| Continent | Europe |
| Country | Austria |
| Time zone | UTC+01:00 (CET) |
| Total Time zones | 1 |
| Working hours per week | 38.5 |
| Working week | Monday–Friday |
| Typical hours worked | 7.7 |
| Personal Tax filing deadline | Paper form: 30 April of the following year; |
| Financial Year | 1st January to 31st December |
| Capital | Vienna |
| Date format | dd-mm-yyyy |
| Currency | Euro (EUR) |
| VAT | the standard rate is 20% |
Employer Payroll Contributions in Austria
| Employers | % of Gross Salary |
| Sickness | 3.78% |
| Unemployment | 3% |
| Pension | 12.55% |
| Accident Insurance | 1.2% |
| Other | 0.7% |
| Total Employment Cost | 21.23% |
Employee Payroll Contributions in Austria
| Employees | % of Gross Salary |
| Health Insurance | 3.87% |
| Unemployment | 3% |
| Pension | 10.25% |
| Provision Fund | 1.53% |
| Other | 1% |
| Total Employee Cost | 19.56% |
Minimum Wages in Austria
| Minimum Wage | |
| Minimum Wage | No set minimum wage set nationally. Minimum wages are industry based. |
Payroll Cycle in Austria
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Generally given in June and November (in two instalments). |
Personal Income Tax in Austria
| Income Tax | |
| Up to 11,000 EUR | 0% |
| 11,001 - 18,000 EUR | 20% |
| 18,000 - 31,000 EUR | 35% |
| 31,001 - 60,000 EUR | 42% |
| 60,001 - 90,000 EUR | 48% |
| 90,001 - 1,000,000 EUR | 50 % |
| 1,000,000 EUR and over | 55% |
Employment Contracts in Austria
Minimum Requirements
In Austria, employers are obligated to provide employees with a written record outlining the essential rights and obligations of the employment relationship. This record must be given to the employee immediately upon the commencement of employment if the duration is expected to be longer than one month. The record should include details such as the names and addresses of both the employer and employee, the start and, if applicable, end dates of the employment, the notice period, the place of work, the job description, the salary, annual leave entitlement, normal working hours, relevant collective bargaining agreement, and information about the occupational pension fund. While written records are used in some cases, it is more common to have an employment contract negotiated and signed by both parties.
Language and Contract Types
The official language in Austria is German, and employment contracts should ideally be in German or at least have a bilingual version with German as the prevailing language. Both fixed-term and open-ended contracts are common in Austria. There is no statutory maximum duration for fixed-term contracts, but contracts lasting more than five years have specific termination provisions. Fixed-term contracts end at the agreed term, and termination during the fixed term requires explicit agreement and is subject to restrictions. A fixed-term contract can be terminated early for valid reasons or by mutual consent. If the activity continues beyond the agreed term, the contract is considered to be indefinite. While there is no statutory requirement for making employees permanent, successive fixed-term contracts without objective reasons are prohibited.
Trial Period and Notice Period
A trial period of up to one month, where either party can terminate the employment, can be agreed upon. After the trial period, it is common to have a one-time fixed-term contract of 1-5 months before transitioning to an unlimited contract. The notice periods for termination are based on the length of service, although collective bargaining agreements (CBA) may provide different periods. Employers must observe specific notice periods ranging from 6 weeks to 5 months, depending on the years of service. Employees, on the other hand, generally have a one-month notice period, which can be extended up to 6 months through a contractual agreement, provided that the employer's notice period is not shorter. The termination date is typically the end of a calendar quarter for employers and the end of the calendar month for employees, unless more favorable rules are specified in a CBA.