Current Region & Language
Current Region & Language
Current Region & Language
Currency
Euro
Employer Taxes
Around 29.61%, covers social security insurance costs.
Payroll Frequency
Monthly
Language
German
Date Format
DD/MM/YYYY
Austria By The Numbers
9 million
Population
EUR 477 billion
GDP
4
National Holidays
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Weekly Working Hours
National Holidays
Leave
Employees are entitled to various types of leave, including holiday, sick, maternity, and parental leave. They may also receive time off to care for a child or other close relatives. Special leave is granted for events such as marriage, the birth of a child, the death of close relatives, or relocation. The applicable collective labor agreement (CLA) may provide for additional types of leave.
Employment Contracts
Employers are required to provide written employment contracts and policies that outline the terms and conditions of employment, including job responsibilities, compensation, benefits, and workplace expectations, in compliance with applicable labor laws.
Types of Employment
Employees, temporary agency workers, service contracts, and independent contractors are all recognized types of employment.
Employment Costs
Employment costs range around 29.61% (this includes amongst others, social security insurance costs such as health, pension, unemployment and accident insurance). Specific surcharges may apply for blue collar workers. For certain insurances Austrian employer costs can be capped at high salary rates.
IC Class Factors
The distinction between a Freelance Service Contract and a Service Contract is based on specific characteristics. For a Freelance Service Contract, personal dependence is minimal or non-existent, the freelancer has the freedom to regulate the work process and make changes at any time, there is no obligation to attend work, and the freelancer has the right to be substituted at any time. In contrast, a Service Contract typically requires the achievement of a specific result, is completed upon the fulfillment of that result, and the service subject is often detailed in the contract, leaving little room for further instructions. The contractor is generally personally independent in a service contract as well.
Labor Leasing
The placement of contingent or temporary workers at third party sites requires a labor leasing license.
Minimum Wage Requirements
In Austria, minimum wages or minimum salaries are regulated in collective agreements, sometimes also in minimum wage scales. However, there is no statutory minimum wage.
Medical Benefits
In the event of incapacity for work due to illness, the employer must continue to pay remuneration. Remuneration is not just wages and salary. It also includes regular overtime or bonuses, calculated on average.
Initially, the employer must pay the full salary, later half. During the half-payment period, the employee also receives half the sick pay from the health insurance fund. When half of the continued remuneration from the employment relationship ends, the employee receives the full amount from the health insurance fund.
How long the employee receives full remuneration depends on the duration of the employment relationship and is largely the same for blue-collar and white-collar workers.
Employers must continue to pay remuneration for the following periods per working year: in the first year of employment: 6 weeks full continued pay, then 4 weeks half pay, from the second to the 15th year: 6 weeks full continued pay, then 4 weeks half pay, from the 16th to the 25th year: 10 weeks full continued pay, then 4 weeks half pay, from the 26th year: 12 weeks full continued pay, then 4 weeks half pay.
Probationary Periods
The duration of the probationary period for blue-collar and white-collar employees is limited to a maximum of 1 month. Collective agreements may shorten the probationary period, but may not extend it beyond one month.
Termination Notice
During the probationary period, the employment relationship can be terminated at any time without observing a notice period. After the probationary period, the notice period to be observed by the employer is extended in accordance with the length of the period of employment of the employee.
The employer can therefore terminate the employment relationship subject to the following notice periods: in the 1st and 2nd year of employment: 6 weeks; from the 3rd year of employment: 2 months; from the 6th year of employment: 3 months; from the 16th year of employment: 4 months and from the 26th year of employment: 5 months.
Collective agreements may also regulate other notice periods.
Severance
Termination pay is calculated based on the overall total compensation an employee would have received had the employee continued to work during the applicable notice period.
From the 2nd month of employment, the employer is obliged to pay 1.53% of the employee’s gross remuneration each month to the health insurance fund (part of the social security contribution). The health insurance fund forwards this contribution to the severance pay fund. In case the employment relationship is terminated, the employee has certain options to receive these accrued severance payments if certain conditions are fulfilled.
Pre-hire Checks
Background checks are permissible. This includes internet searches or research on social media platforms. However, any further use of this data is only permitted if it is necessary for the employment relationship or its establishment.
Download PDF
Legal Disclaimer
The information provided on this website is for general informational purposes only and is subject to change without notice. The content on this website is not intended to be a substitute for professional legal advice, diagnosis, or treatment. While we strive to keep the information up to date and accurate, People 2.0 makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
Lorem ipsum dolor sit amet consectetur adipiscing eli mattis sit phasellus mollis sit aliquam sit nullam.
Need Help Hiring in Austria?
Connect with Our Experts.
Lorem ipsum dolor sit amet consectetur adipiscing eli mattis sit phasellus mollis sit aliquam sit nullam.
2023 People2.0. All Rights Reserved
