Austria
COUNTRY PLAYBOOK
Currency
Salary payment frequency
Capital
Time Zone
Official Languages
Is English spoken?
Quick Links
Introduction
General Overview & Economic Facts
- Austria (Österreich), officially knowns as the Republic of Austria (Republik Österreich), is a country found in the southern part of Central Europe
- Austria occupies an area of 83,879 km2 (32,386 sq mi) and has a population of approximately 9 million people
- Austria’s economy ranks 28th by nominal GDP (2019) and 44th by PPP (2020)
- The country has achieved a high standard of living and is ranked 18th the world for HDI (2019)
Why Employ In Austria?
- The main exports from Austria are cars, machinery and paper
- 10.36% of the population is between the ages of 15 and 24 years, with 41.35% of the population being between the ages of 25 and 54. Austria has a fairly youthful population, making it a favourable country to employ young, energetic employees
Overview Of The Labour Law
- The Employment law in Austria is governed by statutory regulations found in various laws
- These laws include the Labour Protection Act (Arbeitnehmerschutzgesetz), the statutes regarding white-collar workers (Angestelltengesetz), working times (Arbeitszeitgesetz), and paid vacation time (Urlaubsgesetz)
- Employment contracts are governed by collective agreements
- Austrian employment law provides strong labor conditions and protections for employees
Fun Country Facts
- The sewing machine was invented by Austrian Josef Madersperger
- Ferdinand Porsche, the founder of the German sports car company ‘Porsche’, was from Austria
- The first postcards were used in Austria
Why Use Playroll Services For Austria?
- Employing in Austria requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Austria
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Unemployment Insurance Fund
Called AV in Austria
Regular wage
3.00%
Calculated on a maximum salary of EUR 5,500.00 per month
Special payments
3.00%
Calculated on a maximum salary of EUR 11,100.00 per year
Employee Pension Insurance
Employed for more than 1 month
1.53%
Retirement Pension Insurance
Called PV in Austria
Regular wage
12.55%
Calculated on a maximum salary of EUR 5,500.00 per month
Special payments
12.55%
Calculated on a maximum salary of EUR 11,100.00 per year
Health Insurance
Regular wage
3.78%
Calculated on a maximum salary of EUR 5,500.00 per month
Special payments
3.78%
Calculated on a maximum salary of EUR 11,100.00 per year
Accident Insurance
Called UV in Austria
Regular wage
1.20%
Calculated on a maximum salary of EUR 5,500.00 per month
Special payments
1.20%
Calculated on a maximum salary of EUR 11,100.00 per year
Miscellaneous
Public transport levy (employees in Vienna)
EUR 2.00 per week
Contribution for the promotion of residential building (called KU in Austria)
0.50%
Calculated on a maximum salary of EUR 5,500.00 per month
Payroll Tax
Municipal Tax (called KommSt in Austria)
3.00%
Calculated on a maximum salary of EUR 1,095.00 per month
Chamber of commerce levy (called DZ – Zuschlag zum Dienstgeberbeitrag in Austria)
± 0.38%
Family Burdens Equalisation Levy (called DB in Austria)
3.90%
Wage Guarantee Fund
Regular wage
0.20%
Calculated on a maximum salary of EUR 5,500.00 per month
Special payments
0.20%
Calculated on a maximum salary of EUR 11,100.00 per year
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Unemployment Insurance Fund
Earning between EUR 0.00 and EUR 1,790.00 per month
0.00%
Earning between EUR 1,790.01 and EUR 1,953.00 per month
1.00%
Earning between EUR 1,953.01 and EUR 2,117.00 per month
2.00%
Earning between EUR 2,117.01 and EUR 5,550.00 per month
3.00%
Retirement Pension Insurance
Regular wage
10.25%
Calculated on a maximum salary of EUR 5,500.00 per month
Special payments
10.25%
Calculated on a maximum salary of EUR 11,100.00 per year
Miscellaneous
Contribution to the labour chamber (called WF in Austria)
0.50%
Calculated on a maximum salary of EUR 5,500.00 per month
Contribution for the promotion of residential building (called KU in Austria)
0.50%
Calculated on a maximum salary of EUR 5,500.00 per month
Health Insurance
Regular wage
3.87%
Calculated on a maximum salary of EUR 5,500.00 per month
Special payments
3.87%
Calculated on a maximum salary of EUR 11,100.00 per year
Income Tax
Income Tax is ‘Pay As You Earn’
Income bracket per annum
0.00 – 11,000.00
0.00%
11,001.00 – 18,000.00
20.00%
18,001.00 – 31,000.00
35.00%
31,001.00 – 60,000.00
42.00%
60,001.00 – 90,000.00
48.00%
90,001.00 – 1,000,000.00
50.00%
1,000,001.00 or more
55.00%
Employment Terms
General
Minimum Wage
- There is no statutory minimum wage
Working Hours
- Maximum of 8 hours per day and 48 hours per week
- Minimum 30-minute meal interval after 6 hours of work
- Typical working hours are 08h00 to 17h00 Monday to Thursday and 08h00 to 15h00 on Fridays
Overtime
- Employees may work a maximum of 2 overtime hours per day and 10 overtime hours per week
Notice Period
- Employed between 0 and 2 years- 6 weeks’ notice
- Employed between 2 and 5 years- 2 months’ notice
- Employed between 5 and 15 years – 3 months’ notice
- Employed between 15 and 25 years – 4 months’ notice
- Employed for 25 years or more- 5 months’ notice
Severance Pay
- Employers must pay contributions to a severance payment fund for employees at a rate of 1.53% of their gross monthly salary
- If an employee leaves at least three years after the first payment into the fund, and they have not been dismissed or made redundant, they are entitled to this fund. The amount of the severance payment depends on a number of factors such as duration of employment and administrative costs
Probation Period
- There is no statutory probation period
- It is common to have a probation period of 1 month
Bonus
- There is no statutory bonus
- It is customary to award employees with a discretionary bonus
Public Holidays
Public holidays 2022
- January 1st – New Year’s Day
- January 6th – Epiphany
- April 18th – Easter Monday
- May 1st – Labour Day
- May 26th – Ascension Day
- June 6th – Whit Monday
- June 16th – Corpus Christi
- August 15th – Assumption of the Virgin Mary
- October 26th – National
- November 1st – All Saint’s Day
- December 8th – Immaculate Conception
- December 25th – Christmas Day
- December 26th – St Stephen’s Day
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by the employer
- 25 days per year- if work week is Monday to Friday
- 30 days per year- if work week is Monday to Saturday
Sick Leave
- Paid leave
- Paid by employer
- 6 weeks per year- employed between 0 and 1 year
- 8 weeks per year – employed between 1 and 14 years
- 10 weeks per year – employed between 15 and 24 years
- 12 weeks per year – employed for 25 years or more
Maternity Leave
- Paid leave
- Paid by Social Security
- 16 weeks per year
Paternity Leave
- Unpaid leave
- 1 month per year
- Fathers may apply for compensation in terms of the Family Time Bonus Act
Parental Leave
- Paid leave
- Paid by Social Security
- 2 months per year
Study Leave
- Unpaid leave
- Will receive a further training allowance (Weiterbildungsgeld) from the Employment Service (AMS)
- Minimum of 2 months per year, maximum of 12 months per year
Bereavement Leave
- Paid leave
- Paid by employer
- 20 days per year
Family Care Leave
- Paid leave
- Paid by employer
- Minimum of 1 week per year, maximum of 2 weeks per year