Austria
Make employment in Austria easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Austria, all in one easy-to-use platform.
- Capital City
Vienna
- Currency
Euro (€, EUR)
- Languages
German
- Population size
8,902,600
Facts & Stats
- Capital City
Vienna
- Currency
Euro (€, EUR)
- Languages
German
- Population size
8,902,600
- Ease of doing business
Very easy
- Cost of living index
$$$$ (23 of 139 nations)
- Payroll frequency
Monthly
- VAT - standard rate
20%
- GDP - real growth rate
2.729% (2018 est.)
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.
Grow your team in Austria with Remote
Looking to employ workers in Austria? Companies hiring in Austria must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Austria on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Austria team. You can also pay contractors now in Austria with Remote.
Risks of misclassification
Austria, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Austria may lead to fines and penalties for the offending company.
Employing in Austria
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.
Minimum Wage
There is no statutory minimum wage in Austria, but national collective bargaining agreements set minimum wages by job classification and years of service for each industry. This provides for an effective minimum wage of €1,500 EUR per month based on a 38.5-hour work week.
Payroll Cycle
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.
Onboarding Time
We can help you get a new employee started in Austria fast. The minimum onboarding time we need is only 3 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.
13 Public holidays
Want to see and manage all holidays? Sign up for our free HRIS!
Effortless HR in Austria: Take the Tour
Competitive benefits package in Austria
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:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Local market insights
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.
Taxes in Austria
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
Types of leave
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.
Employment termination
Termination process
Austrian employers in general have these options to terminate an employment agreement:
Termination by mutual consent;
Unilateral termination;
Resignation on the end of the employee;
Urgent dismissal of the employee, for example in case of theft or any other serious misconduct;
Notice period
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.
Probation periods
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.
Fair Pricing in Austria
Employer of Record
Hire and pay your global team
Starting at $599/month
for annual plans
Top features
Satisfaction guaranteed
No deposits or hidden fees
Zero onboarding or offboarding fees
Compliant equity incentives support including withholding and reporting
Built-in security and compliance
Fast onboarding (average 2-3 days)
Flexible, localized benefits
Top features
Only pay for contractors you actively work with
Work with contractors in 200+ countries
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Remote Payroll
Consolidate your multi-country payroll
$50
per employee/month
Top features
Reduce costs by centralizing payroll management
Ensure local compliance for every country
Direct support from in-house local payroll experts
Accurate, on-time, compliant payroll to level-up your employee experience
Tax and labor authority reporting handled for you
Top features
Guided onboarding and offboarding
Employee profile and document management
Time and attendance (time off and tracking)
Expense management and reimbursement
Employee self-serve on the platform and mobile app