Overview

Capital
Vienna
Currency
Euro (EUR)
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

3.78%
Sickness
3.00%
Unemployment
12.55%
Pension
1.20%
Accident Insurance
0.70%
Miscellaneous
21.23% Total Employment Cost
Employee

Employee Payroll Taxes

3.87%
Health Insurance
3.00%
Unemployment
10.25%
Pension
1.00%
Miscellaneous
1.53%
Provision Fund
19.56% Total Employee Cost

Employee Income Tax

0%
Up to 11,000 EUR
20%
11,001 - 18,000 EUR
35%
18,001-31,000 EUR
42%
31,001 - 60,000 EUR
48%
60,001 - 90,000 EUR
50%
90,001-1,000,000 EUR
55%
1,000,000 EUR and above
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Slovakia
Austria
South Africa
Georgia
Macedonia
82.39%
41.12%
37.2%
21.23%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Austria
Georgia
Belarus
Ukraine
45%
28%
27.65%
19.56%
2%
1%
0%

Minimum Wage

General

There is no national set minimum wage in Austria. Minimum wages are set by collective bargaining agreements and are industry-based. 

Payroll

Payroll Cycle

Salaries are regularly paid monthly and wages must be paid by the end of the month.

13th Salary

It is common practice to give a 13th salary split between 2 installments (June and November)

Working Hours

General

Full-time employment is considered 8 hours daily, and 40 hours weekly.

Overtime

Anything over 40 hours per week is paid at a rate of 150% of the regular pay.

Leave

Paid Time Off

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.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Albania
Austria
Michigan
China
Federal
30
13
43
30
12
42
28
14
42
25
13
38
2
11
13
5
7
12
10
10
Public Holidays

There are 13 public holidays.

Sick Days

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

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.

PAID MATERNITY LEAVE (DAYS)
410
365
365
112
45
30
0
Bulgaria
Serbia
Albania
Austria
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Fathers are entitled to 1 month of unpaid paternity leave and can be taken until the child reaches the age of 24 months.

Parental Leave

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.

Termination

Termination Process

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.
Notice Period

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
Severance Pay

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.

Probation Period

1 month

VAT

General

The standard VAT rate is 20%.

Version History

January 1, 2021
Individual income tax bracket changed.
September 22, 2020
Employee payroll contributions has changed.

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