HR & Labor
No official minimum wage. (Unofficial is about 1000 EUR a month).
Employees are entitled to severance pay even if he/she terminated their contract. Payment is offered in two structures: either a lump sum of cash at the time of termination or disbursed payments.
Advance notice is one month.
Salary employees: Employees working 1-2 years in the company are required to receive 6 weeks notice, 3-5 years receive 2 months notice, 6-15 years receives 4 months and 25+ years receive 5 months.
Blue collar workers: Employees working in the company for at least 4 weeks receive 1 week notice, 1 year receives 2 weeks notice, 5 years receive 4 weeks notice and 10 years receive 6 weeks notice.
From 6 weeks to 16 weeks, employee will receive full payment of regular wages.
There are 13 public holidays.
After 6 months of employment, 30 vacation days are allotted. After 26 years working in the same company, 36 vacation days are allotted.
In addition to the pension fund, there are other contributors all to which the monthly salary ceiling of EUR 4,650 applies.
- The employer must pay 3.83%/3.70% (white/blue collar) of salary for sickness insurance.
- The employer must pay 3.45% for unemployment fund
- The employer must pay 0.5% to the housing fund.
- The employer pays an additional 1.3% for accident insurance
-The employee pays 3.82%/3.95% (white/blue collar) of salary for sickness insurance.
- The employee pays 3% towards the unemployment fund.
- The employee contributes 0.5% to the housing fund.
-The employee pays 0.5% for compulsory membership of the chamber of labor.
Up to 35% of their taxable income can be paid tax free by their employer with the following expenses deducted from their taxable income: cost of moving, second household, education for their children and traveling to their home country.
However, they have to meet the following criteria:
1) Must have lived in Austria for less than ten years
2) They must be assigned to their foreign company
3) The assignment must not last longer than 5 five years
4) Their foreign residence must be maintained during the time spend in Austria.
Additional Employee Withholdings
The salary ceiling is 4,530 EUR per month, any income exceeding this amount does not require employees to contribute to social security including pension payments.
1. Sickness coverage- Employer contributes -3.87%
2. Accidents - Employer contributes – 1.4%
3. Unemployment - Employer contributes – 3%
1.Sickness coverage- Employee contributes – 3.87%
2. Accidents - Employee contributes – 0%
3. Unemployment- Employee contributes – 3%
VAT is 20% standard rate.