Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
There is no national set minimum wage in Austria. Minimum wages are set by collective bargaining agreements and are industry-based.
Salaries are regularly paid monthly and wages must be paid by the end of the month.
It is common practice to give a 13th salary split between 2 installments (June and November)
Full-time employment is considered 8 hours daily, and 40 hours weekly.
Anything over 40 hours per week is paid at a rate of 150% of the regular pay.
After 6 months of employment, employees are entitled to 25 days of paid annual leave. After 25 years of employment with the same employer, the entitlement is 30 days of paid annual leave.
There are 13 public holidays.
Sick leave entitlement varies based on the length of employment:
- 1 year of employment- 6 weeks
- 2-15 years of employment- 8 weeks
- 16-25 years of employment- 10 weeks
- 26+ years of employment- 12 weeks
Any sick leave beyond the above entitlement is covered by social security.
Maternity leave is for 16 weeks in Austria and can start from 8 weeks prior to the expected due date. For high-risk births, leave after the birth is extended to 12 weeks.
Maternity leave is paid by social security and is based on the average earnings of the last 3 months before the maternity leave begins.
Fathers are entitled to 1 month of unpaid paternity leave and can be taken until the child reaches the age of 24 months.
There are 2 options that parents can choose:
- One parent can take 12-28 months
- Both parents can take 15- 35 months
Parental leave can be taken until the child reaches the age of 24 months. During parental leave, parents are entitled to payment under the Child Care Payment Act from social security.
There are several types of termination in Austria:
- Fixed-term contract- if a fixed-term contract is expiring, no action is needed.
- Termination by mutual consent- when employment ends by mutual consent, no notice period is required and can be in writing or verbally, however, termination in writing is recommended.
- Unilateral termination– Can be verbal or in writing and no reason for the termination needs to be provided.
- Dismissal- This terminates the employment agreement with immediate effect and a reason must be given. If the employee deems the dismissal unjustified, they are able to make a claim with the labor and social security courts.
- Resignation – If the employee chooses to resign, this terminated the employment relationship with immediate effect.
The notice period varies based on the length of employment:
- Up to 2 years of employment- 6 weeks’ notice
- 2-5 years of employment- 2 months’ notice
- 5-15 years of employment- 3 months’ notice
- 15-25 years of employment- 4 months’ notice
- 25+ years of employment0 5 months’ notice
Every month starting from the 2nd month of employment, the employer is obligated to contribute 1.53% towards a provision fund. When the employment relationship is terminated, the employee is entitled to severance pay unless:
- The termination was initiated by the employee
- The employer terminated the employment agreement based on misconduct on the part of the employee
If the employee would like to draw the amount from the provision fund, they must submit a letter in writing within 6 months of termination.
The standard VAT rate is 20%.