Overview

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

Contributions

Employer

Employer Payroll Contributions

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

Employee Payroll Contributions

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

0.00%
Up to 11,000.00 EUR
20.00%
11,001.00 EUR - 18,000.00 EUR
35.00%
18,001.00 EUR - 31,000.00 EUR
42.00%
31,001.00 EUR - 60,000.00 EUR
48.00%
60,001.00 EUR - 90,000.00 EUR
50.00%
90,001.00 EUR-1,000,000.00 EUR
55.00%
1,000,000.00 EUR and over
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 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 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.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Spain
Austria
Brazil
Austria
Michigan
China
Federal
30
14
44
30
13
43
30
13
43
30
13
43
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.

A medical certificate must be provided. If no medical certificate is provided, the employee may lose their right to sick pay.

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)
413
410
365
112
45
30
0
Norway
Bulgaria
Serbia
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

Probation period is 1 month.

VISA

VISA

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).

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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    Questions & Answers

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    Paul
    Paul
    2 months ago

    Is there a legal limit to how long a non-compete clause in an employee’s contract can run?

    Alex Margolin
    Admin
    2 months ago
    Reply to  Paul

    Hi Paul, a non-compete clause can run for a maximum of one year after the termination of an employee’s contract.

    Alexandra
    Alexandra
    1 month ago

    What happens if you don’t report sick leave?

    Emily Kuhnert
    Admin
    1 month ago
    Reply to  Alexandra

    Hi, In Austria, the employee has one week to report that they are sick by providing a medical certificate. If they fail to do so, sick pay only begins from the day that the sickness is reported.

    Ahmed
    Ahmed
    4 days ago

    will be a problem if i take unpaid leave for 2 months during RWR Card and also don’t pay socail insurance ?

    Alex Margolin
    Admin
    4 hours ago
    Reply to  Ahmed

    it will depend on the specific type of RWR card you hold. Some RWR cards are tied to specific employers, so if they leave that employer they will need to apply for a new card. Best to check the details of the specific card.

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