Employer Payroll Contributions
Employee Payroll Contributions
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 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 30 working days of paid annual leave. After 25 years of employment with the same employer, the entitlement is 36 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.
A medical certificate must be provided. If no medical certificate is provided, the employee may lose their right to sick pay.
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.
Probation period is 1 month.
For EU/EEA/Swiss Citizens:
Austria is part of the Schengen Area of Europe, meaning that citizens of European Union (EU), European Economic Area (EEA) states, or Switzerland can work in Austria without a visa for up to 3 months. Beyond 3 months, they need to register for a residence permit and demonstrate that they are employed in Austria.
For Non-EU/EEA/Swiss Citizens:
Non-EU/EEA/Swiss citizens must apply for a Schengen visa to enter Austria. The type of work visa you need depends on lengths of stay and level of qualifications for employment.
The standard time it takes to process a work visa application is about 8 weeks. Options include:
Red-White-Red Card – this card serves as a combination of residence permit and work permit and can be valid for up to 2 years. It is granted under a point system to
- Highly skilled workers
- Skilled workers in shortage occupations
- Other key workers
- Graduates of Austrian universities
- Start-up founders
It is granted for a single, specified employer. If there is a change of employer within 2 years, the applicant must obtain a new Red-White-Red Card.
Red-White-Red Card Plus – After holding a Red-White-Red Card for 2 years, the applicant can request a Red-White-Red Card Plus, which allows holders to change their employer without filing for new cards.
Job Seeker Visa – Only for those who qualify as highly skilled workers but do not have a job yet. The six month visa provides time to find work but does not constitute a work visa. After the applicant finds work, it is necessary to apply for one of the work visa options.
EU Blue Card – Another option for those with higher education, a job offer for at least a year, and earnings over a certain threshold. It provides residence and work permit for 2 years.
Temporary Resident Visa – for key workers at companies with branches incorporated in Austria who will stay temporarily but not move to Austria. Usually issued to employees posted to Austria from third countries or as internally transferred employees (ICT).
The standard VAT rate is 20%.