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Good to know
Vienna is the capital and the largest city of Austria. It is known for its rich history, art, culture, and music.
Currency
Euro (EUR)
Capital
Vienna
Employee Costs
17.20%
Local Language
Austrian German
Employer Taxes
21.03%
Public Holidays
13 Days
Payroll Frequency
Monthly
Tax Year
1st Jan – 31st Dec
Are you ready to hire in Austria?
Austria has a stable and prosperous economy with a high standard of living. It offers numerous job opportunities across various industries. Austria’s central location in Europe makes it an ideal base for travel and business within the European Union, facilitating access to various markets. While German is the official language, many Austrians are proficient in English, which can be advantageous for international professionals.
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Minimum Wage
The Austrian Government does not define a national minimum wage. Instead, minimum remuneration rates are determined by collective agreements for each individual industry. However, the most common unofficial minimum monthly salary is €1,200.
Working Hours
Standard Working Hours
The working hours in Austria consist of 8 hours per day and 40 hours per week, with a maximum daily limit of 12 hours (including overtime). The average weekly working hours should not exceed 48 hours for 17 consecutive weeks. The standard working week is Monday – Friday.
Overtime
Over and above the 40-hour work week, overtime must be compensated with 150% of the employee’s regular salary. Employees are free to refuse overtime without stating any reason if the hours exceed these limits. Employees cannot opt-out of the maximum working hours regulations.
Payroll
In Austria, the payroll cycle is on a monthly basis, and employers are required to pay wages by the last working day of each month, unless otherwise specified in a collective bargaining agreement or employment contract.
The standard annual salary in Austria is usually distributed over 14 payments, which include 12 regular monthly salaries and two additional payments known as “13th and 14th salaries.” These extra payments are often given as bonuses, usually around Christmas (13th salary) and in the summer (14th salary), however they are not a legal requirement.
Leave
Paid time off
The legal holiday entitlement for employees who have served for at least six months is five weeks, which equals 25 working days per year. Employees with less than six months of service earn two working days of holiday per month. Once an employee reaches 25 years or more of service with the same employer, their entitlement increases to six weeks, equivalent to 30 working days of annual leave.
Sick Pay
During the first six weeks of sick leave, employees are entitled to fully paid sick leave. This means they receive their regular salary during this period.
After the initial six weeks, if the employee’s illness persists, they are eligible for a further four weeks of sick leave on half-pay. During this period, the employee will receive 50% of their regular salary, and the remaining 50% is covered by social security.
Maternity Leave
Maternity leave in Austria typically covers 16 weeks, which can begin between 8 weeks before the expected due date and the actual date of childbirth. During maternity leave, expectant mothers are entitled to receive maternity benefits. These benefits amount to a percentage of their average gross income, generally ranging from 80% to 100%. The specific percentage depends on the woman’s insurance coverage and employment status.
Additionally, mothers may extend their maternity leave beyond the initial 16 weeks if they choose to take unpaid parental leave, which can last until the child reaches the age of two.
Paternity Leave
Fathers are entitled to one month of unpaid paternity leave which may begin any time after the child’s birth.
Termination
Termination of Employment
Employers can terminate employees only for valid reasons. Such as poor performance, misconduct, redundancy, or economic reasons. However, proper documentation and compliance to legal requirements are essential. The length of the notice period the employer is required to give depends on the employee’s length of service. Longer service typically results in longer notice periods. Employees hired in Austria after January 1, 2003, have the right to receive a severance payment. This payment is funded through a severance payment fund, to which employers contribute 1.53% of the employees’ gross salary.
Notice Period
The notice period in Austria varies based on the length of employment. For individuals with up to two years of service, a notice period of six weeks is applicable. Those with 2 to 5 years of employment should provide a notice period of two months. For employees with a service of 5 to 15 years, a notice period of three months is required. If the length of service is over 15 to 25 years, the notice period extends to four months. This can increase up to a maximum of 6 months.
Probation Period
The probation period must not exceed one month, however this excludes apprenticeships whose probation periods is typically 3 months.
Visa
You are allowed to travel to Schengen area countries for a period of up to 90 days within any 180-day period without the need for a visa. This rule applies to various travel purposes, including tourism, visiting family and friends, business meetings, cultural or sports events, and engaging in short-term studies or training.
It’s crucial to confirm that your entire stay is within the 90-day limit when travelling on a visa-free journey to Austria or other Schengen nations.
If your plans involve an extended stay (for work, study, business travel, or any other reasons), you must meet the specific entry requirements set by the Austrian government. To determine the appropriate visa or work permit needed for your circumstances, consult the Austrian Ministry of Foreign Affairs or the Austrian Embassy in London for visa requirements.
VAT
The standard VAT rate in Austria is 20%.
