Overview

Capital
Vienna
Currency
Euro
Date Format
dmy

Taxes

Employer
3.78% - Sickness
3.00% - Unemployment
12.55% - Pension
1.20% - Accident Insurance
0.85% - Miscellaneous
Employee
3.87% - Health Insurance
3% - Unemployment
10.25% - Pension
0.00& - Miscellaneous
0% - Up to 11,000
25% - 11,001 - 18,000
35% - 18,001-31,000
42% - 31,001 - 60,000
48% - 60,001 - 90,000
50% - above 90,000

Minimum Wage

General

There is no national set minimum wage in Austria. 

Working Hours

General

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

Overtime

Anything over 40 hours a week is paid at a rate of 150% of the regular pay. If the employee works on a Sunday, over a holiday, or during night hours overtime is paid at a rate of 200%.

VAT

General

VAT is 20% standard rate.

Mandatory Benefits

Pension Fund

Austria folllows the three pillar model for pension contribution. 1. The public pilar: 20% tax and 80% contribution. 2. Occupational: contributions by employer and employee based on collective agreements. 3. Independent retirement provision. Under the occupational contributions - employer contributes 12.55%. The employee contributes 10.25%.

Social Security

In Austria, social security is comprised of pension insurance, accident insurance, health insurance, and unemployment insurance and are capped at 5,220 EUR for the regular monthly salary and at 10,440 EUR for payments that do not occur on a monthly basis (i.e. bonus and commissions).  

13th Salary

There are mandatory 13th and 14th salaries that are paid out in June and December respectively. 

Additional Pay

There are 14 salary payment annually, 12 monthly salary payments, one months pay for Christmas bonus, and one months pay for holiday bonus.

Payroll

Payroll Cycle

Salaries are regularly paid monthly, however, depending on the agreement between the employee and employer can differ. Additionally payday is agreed upon internally.

Termination

Termination Process

If an employee is still under a probation period, it is possible to terminate the employment relationship without giving a reason.  Probation period cannot be longer than one month, or 3 months for apprenticeship. 

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, 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 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. 

Advance Notice

For a unilateral termination by the employer:

  • White collar employees- at least 6 weeks’ notice must be given
  • Blue collar employees- at least 2 weeks of notice unless a collective agreement state otherwise.

For a unilateral termination by the employee:

  • White collar employees- 1 months’ notice
  • Blue collar employees- at least 2 weeks unless a collective agreement state otherwise.
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
  • 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.