Austria

Employment

Contract of employment is typical agreement between the employee and employer. One month probation period during which the employee can terminate the agreement without explanation.

Payroll

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

HR & Labor

Working hours: Full time employment is considered 40 hours per week. Overtime is rewarded 150% of regular wage on work days and 200% of regular wage during night hours, holidays and Sundays. Employees are entitled to an unpaid break after working for 6 consecutive hours. Some employers grand 13th and 14th salary, however, this is not a legal entitlement and is dependent on the agreed employment contract.
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Minimum Age: 15 years and older can be employed for regular positions. 18 and up can employed for managerial positions.

Immigration

A work permit is required for non-EEA nationals and is obtained through an Austrian employer. Non-EEA members alternatively can apply for employment authorization at the Public Employment Service branch in the district that they live in.

Minimum Wage

No official minimum wage. (Unofficial is about 1000 EUR a month).

Pension Fund

The employer contributes 12.55%.

The employee contributes 10.25%.

Severance Payments

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

Advance notice is one month.

Termination Procedure

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.

Sick Days

From 6 weeks to 16 weeks, employee will receive full payment of regular wages.

Public Holidays

There are 13 public holidays.

Vacation Days

After 6 months of employment, 30 vacation days are allotted. After 26 years working in the same company, 36 vacation days are allotted.

Social Insurance

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.

Expat Benefits

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

VAT is 20% standard rate.