Remote’s guide to employing in Austria.
(January 2020 est.)
Remote-Owned Local Entity
We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
Austria (German: Österreich), officially the Republic of Austria (German: Republik Österreich), is a landlocked East Alpine country in the southern part of Central Europe. It is composed of nine federated states (Bundesländer), one of which is Vienna, Austria's capital and its largest city. Austria is consistently ranked in the top 20 richest countries in the world by GDP per capita terms. The country has achieved a high standard of living and in 2018 was ranked 20th in the world for its Human Development Index.
8,902,600 (January 2020 est.)
Ease of doing business
Cost of living index
$$$$ (23 of 139 nations)
VAT - standard rate
GDP - real growth rate
2.729% (2018 est.)
Employing in Austria requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. The complexity of employment regulations in Austria makes full compliance with employment laws a burdensome process.
Through Remote’s Global Employer of Record solution, your team is employed by our local legal entities in each country, and we take care of payroll, tax, benefits and compliance so you can focus on what matters most -- your people.
Employment law in Austria is governed by statutory regulations codified in various federal laws. These include the statutes on white-collar workers (Angestelltengesetz), statutes concerning working times (Arbeitszeitgesetz), paid vacation (Urlaubsgesetz) and labour protection act (Arbeitnehmerschutzgesetz).
Employment contracts are governed by collective agreements and virtually all employment agreements are covered by a collective agreement. Austrian employment law provides strong labor conditions and protections for employees, so employing people will be an important investment and commitment.
Temporary agencies are popular options for more flexible workforce arrangements. For these and many other reasons, the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Austria.
Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.
|Saturday, January 1, 2022||New Year's Day (Neujahr)|
|Thursday, January 6, 2022||Epiphany (Heilige Drei Könige)|
|Monday, April 18, 2022||Easter Monday (Ostermontag)|
|Sunday, May 1, 2022||Labour Day (Staatsfeiertag)|
|Thursday, May 26, 2022||Ascension Day (Christi Himmelfahrt)|
|Monday, June 6, 2022||Whit Monday (Pfingstmontag)|
|Thursday, June 16, 2022||Corpus Christi (Fronleichnam)|
|Monday, August 15, 2022||Assumption Day (Mariä Himmelfahrt)|
|Wednesday, October 26, 2022||National Day (Nationalfeiertag)|
|Tuesday, November 1, 2022||All Saints' Day (Allerheiligen)|
|Thursday, December 8, 2022||Immaculate Conception (Mariä Empfängnis)|
|Sunday, December 25, 2022||Christmas Day (Christtag)|
|Monday, December 26, 2022||Saint Stephen's Day (Stefanitag)|
There is no statutory minimum wage in Austria, but national collective bargaining agreements set minimum wages by job classification for each industry. This provides for an effective minimum wage of €1,200 per month based on a 40-hour work week.
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
Special payments of 13th and 14th months are also part of the Annual Gross Salary.
We can help you get a new employee started in Austria fast. The minimum onboarding time we need is only 9 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe. Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they call home.
Our benefits packages in Austria are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Our core benefits (which often include things like healthcare) are required in most countries where we hire. We do not require customers to offer benefits in Austria due to its strong public system and local laws that protect us (and you!) against claims of non-discriminatory hiring practices. However, we do recommend that employers in Austria offer benefits to their employees based on market standards. Note that we do not add a markup on any benefits premiums or administration costs.
For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Austria.
12.55% - Pension
3.90% - Family Allowance Fund
3.78% - Health Insurance
3.00% - Unemployment
3.00% - Municipal Tax
1.30% - Employer Provision Fund
1.20% - Accident Insurance
1.53% - Severance fund
0.42% - Surcharge on Family Allowance Fund
10.25% - Pension
3.87% - Health Insurance
3.00% - Unemployment
1.00% - Miscellaneous
0% - Up to 11,000
25% - 11,001 - 18,000
35% - 18,001 - 31,000
42% - 31,001 - 60,000
48% - 60,001 - 90,000
50% - over 90,000
All full-time workers are legally entitled to 25 days paid holiday leave a year. In addition, full-time workers have 13 paid public holidays a year. The minimum amount of annual leave depends on the lenght of the employment relatinoship, with tenure below 25 years resulting in 25 days of annual leave entitlement and above 25 years resulting in 30 days.
Expecting mothers are entitled to 8 weeks of pregnancy leave (before the due date) and at least 8 weeks maternity leave after childbirth. The first 16 weeks are paid at the employee's average income earned during the 13 weeks before maternity leave begins. After maternity pay, the mother can take extended maternity leave and receive child care under the Child Care Payment Act (Kinderbetreuungsgeldgesetz (KBGG)) for up to two years.
Fathers are entitled to paternity leave with the same rights as the mother, but the two parents cannot at the same time use the parental leave. During paternal leave, the father receives child care in the same way that the mother would.
Austrian employers in general have these options to terminate an employment agreement:
The statutory notice period for an employer depends on the duration of employment, ranging from six weeks notice for less than or equal to two years' service and up to five months for more than 25 years' service.
A probationary period of 1 month is generally agreed to in the employment contract in Austria, during which either party can terminate the employment contract without explanation.
The employer must provide at least one week notice to the work council before giving an employee notice of dismissal. If the work council requests, the employer must consult the council before the dismissal can take place.