Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration
Category Contribution (From Monthly Gross Salary)
Sickness 3.87%
Unemployment 3%
Pension 10.25%
Miscellaneous 1%

Talent Wiki - Austria

Your quick guide on talent and labor compliance norms in Austria
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Capital
Vienna
Currency
Euro (EUR)
Languages
German
Payroll Frequency
Monthly
GDP per Capita
$53,370
Employer Tax
21.23%

Supplementary Guide for Employment and Expansion in Austria

Talent Overview

The landlocked nation of Austria is a federation of nine states, one of which, Vienna, is the capital. Austria, considered as one of the richest countries in terms of GDP per capita, has a high standard of living, and was ranked 11th in the Legatum Prosperity Index 2021 on account of its journey to prosperity. Along with a highly developed industry, tourism is also an essential part of the Austrian economy.

Major economic hubs:

Vienna, Upper Austria, Lower Austria

Skills in demand :

Construction joiners, Nursing professionals, Data processing, Mechanical Engineering, Power Engineering.

Local Universities

The top local universities in Austria are listed below:

Universität Wien

RANKING

Local : 1

World : 79

Technische Universität Wien (Vienna University of Technology)

RANKING

Local : 2

World : 216

Universität Innsbruck

RANKING

Local : 3

World : 387

Technische Universität Graz

RANKING

Local : 4

World : 216

Johannes Kepler Universität Linz (Johannes Kepler University Linz)

RANKING

Local : 5

World : 759

Salary Data

Some of the common jobs found in Austria along with their monthly salary are listed below:

Job Title Average Salary ( EUR) Average Salary ( USD)
Corporate Treasurer 5030 5,308.36
Financial Manager 8090 8,536.30
Office Manager 3440 3,629.77
Database Administrator 3970 4,189.31
Sales Manager 6630 6,996.25

Talent Sourcing Tips

Top Local Job Boards:

Monster, StepStone, TheLocal

Number of LinkedIn users:

1.70 million

Top Recruitment Agencies:

Michael Page, Hays, Mondial Recruitment

Employing in Austria

Austrian employment laws safeguards the rights of its employees. It is a combination of EU and Austrian laws. Know more about employment regulations followed in Austria below.

Employee Contract

It is not mandatory to have written agreements for employment and even oral agreements are acceptable. Language of collective agreements or contracts can be in German and English.

Probation Period

The probationary period followed in Austria ranges between one to three months.

Public and Provincial Holidays

Date Name Type Location
1 Jan New Year's Day National holiday
6 Jan Epiphany National holiday
19 Mar Saint Joseph's Day State holiday Carinthia, Styria, Tyrol, Vorarlberg
18 Apr Easter Monday National holiday
1 May Labor Day / May Day National holiday
4 May Saint Florian's Day State holiday Upper Austria
26 May Ascension Day National holiday
6 Jun Whit Monday National holiday
16 Jun Corpus Christi National holiday
15 Aug Assumption of Mary National holiday
24 Sep Saint Rupert's Day State holiday Salzburg
10 Oct Plebiscite Day State holiday Carinthia
26 Oct National Day National holiday
1 Nov All Saints' Day National holiday
11 Nov Saint Martin's Day State holiday Burgenland
15 Nov Saint Leopold's Day State holiday Lower Austria, Vienna
8 Dec Immaculate Conception National holiday
24 Dec Christmas Eve Bank holiday
25 Dec Christmas Day National holiday
26 Dec St. Stephen's Day National holiday

Employee Leaves

Type of leave Time Period Mandatory
Annual leave/Earned Leave 25 days Yes
Sick Leave 42 days Yes
Maternity Leave 16 weeks Yes

Payroll

Payroll Cycle

The employee must be paid monthly.

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Minimum Wage

Austria does not follow statutory minimum wage and depends on the employment agreement. On the whole, the employees will not be paid less than 1500 EUR.

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Overtime Pay

Overtime hours in excess of those stated in the employment contract would be paid at a rate of 150% of the employee’s salary. Overtime on Sundays, public holidays and work between 12:00 AM to 7:00 AM will be compensated at a rate of 200%.

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Health Examination Clause

Bonus

13th Month Pay

The 13th month salary is customary and is normally paid at the end of June.

Employee Benefits

Employers must provide the below mentioned benefits to the employees.

  • ~13th month salary
  • ~14th month salary
  • ~Health Insurance
  • ~Accident Insurance
  • ~Old-age Pension Insurance
  • ~Insolvency Guarantee Fund
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Taxes

Employer Payroll Tax

Category Contribution (From Monthly Gross Salary)
Sickness 3.78%
Unemployment 3%
Pension 12.55%
Accident 1.20%
Miscellaneous 0.7%

Employee Payroll Tax

Category Contribution (From Monthly Gross Salary)
Sickness 3.87%
Unemployment 3%
Pension 10.25%
Miscellaneous 1%

Employee Income Tax

Income (EUR) Tax Rate (%)
0 - 11,000 0%
11,001 - 18000 20%
18,001 - 31,000 35%
31,000 - 60,000 42%
60,001 - 90,000 48%
90,001 - 1,000,000 50%
Above 1,000,000 55%

VAT

The standard VAT rate in Austria is 20%.

Offboarding & Termination

Termination Process

Termination in Austria can be done on a mutual consent basis, which can be communicated in verbal or written format, of which the latter is preferred. There can also be dismissal of the employee by the employer on the grounds of a justified reason. When an employee decides to resign, the employment is terminated with immediate effect. In case of expiration of fixed contract, no action is required.

Notice Period

The notice period for both probationary and permanent employees in Austria ranges from 6 weeks to 5 months.

Severance Pay

Employers must provide severance pay at the rate of 1.53% of their gross monthly salary to the severance pay fund, known as ‘Abfertigungskasse’.

Visa and Immigration

The citizens of the Switzerland and European Economic Area (EEA) can work in Austria. For other non-Austrian nationals, immigration permission and a work permit are required.

Non-European citizens need a Schengen Visa to enter Austria. If one receives employment during the visa tenure, they can apply for Red-White-Red card.

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