Austria
Knowledge Base
Frequently asked question, important data and information on EOR.
General information
The minimum wage for 2023 in Austria is €1,700 per month or €10.10 per hour.
Labor Law
Laws that regulate Labor Relationship
The laws that regulate labor relationships in Austria include the Labour Code (Arbeitsrecht) and the Collective Bargaining Agreement (Kollektivvertrag). The Labour Code sets out the general framework for labor relations, including working conditions, working hours, and employee protection. The Collective Bargaining Agreement applies to specific industries and provides additional regulations and guidelines that apply to workers in those industries. In addition, there are other laws and regulations that govern labor relations in Austria, such as the Employment of Foreign Nationals Act, the Working Time Act, and the Equality Act.
Onboarding guide
Requirements for a labor contract
The requirements for a labor contract in Austria include a clear description of the job duties, the start date, the duration of the contract (if fixed-term), the place of work, the working hours, and the salary. The contract must be in writing and signed by both parties.
Pre-hire Medical exam
Pre-hire medical exams are not required in Austria, but employers are legally required to provide a safe and healthy work environment.
Types of contracts
• Fixed-term
• Indefinite
• Part-time
• Full-time contracts.
Probation Period
The probation period for an employee in Austria varies depending on the contract type, but typically ranges from one to six months.
Are offer letters mandatory in the country?
Offer letters are not mandatory for labor contracts in Austria, but they can be used to clarify the terms and conditions of employment.
Are digital signatures in labor contracts valid?
Permitted
Mandatory onboarding documents
The mandatory documents to hire an employee in Austria include a copy of their passport, a work permit (if applicable), their social security number, and their tax identification number.
Statutory benefits
Annual Bonus
In most cases, remuneration is paid 14 times a year: twelve monthly salary payments plus one month’s pay in the form of a Christmas bonus and one month for a holiday bonus (special payments).
Additional bonus
Doesn’t apply
Leaves (medical, maternity, paternity, etc.)
• Sick leave: The principle of continued remuneration ensures that in the event of sickness, industrial accident and occupational illness and during rest cure and convalescence leave, employees’ remuneration will continue to be paid. How long one continues to be paid mainlydepends on the seniority, and different regulations may apply for white-collar workers and manual workers. After continued remuneration, one receives sick pay from the health insurance provider. The amount of sick pay depends on the earnings in the last month before the illness and the amount of continued remuneration paid. As an employee one is obliged to inform the employer as soon as one becomes incapacitated for work.
• Maternity leave: The protection period (Mutterschutz) for pregnant employees normally begins eight weeks before birth and ends eight weeks thereafter (absolute employment prohibition:during this time the employee must not be employed at all). During the protection period the employment relationship continues to exist, and the employee receives a maternity allowance (Wochengeld) of about the same amount as the average remuneration during the last 13 weeks before the absolute employment prohibition. Since 1st January 2008, also freelance contractors receive maternity allowance.
• Parental leave: Mothers and fathers are entitled to parental leave (= release from work in return for suspension of wages/salary) of until the child reaches the age of 24 months (maximum), provided the parent in parental leave lives in the same household as the child. The minimum period of the parental leave is two months. The dismissal and termination protection ends four weeks after the end of the parental leave. During the time of parental leave, and provided the conditions are satisfied, childcare allowance (Kinderbetreuungsgeld) may be drawn. From 1 January 2010, parents may choose from five models of childcare allowance. One model is income-based, the others provide a monthly lump sum.
• Educational and study leave: Educational or study leave may be agreed upon with the employer after six months of uninterrupted employment. The minimum period is two months, the maximum period is one year. If education or study leave is taken in parts, each part has to last at least two months. It is possible to take study leave in individual periods spread over up to four years. Wages and salary will not be paid during this period, but the employee will receive a further training allowance (Weiterbildungsgeld) from the Employment Service (AMS) equivalent to the level of unemployment benefit to which they are entitled. The employee must participate in a further training measure of at least 20 hours per week.
• Caring for a relative at home: If one has to care for a family member living in the same household, one may, under certain conditions, be given time off work and continue to receive pay. Time-off for care responsibilities is granted for one week. One further week per calendar year is possible if a child who is not yet 12 years old falls ill again and requires care.
• Compassionate leave: Employees may take compassionate leave in order to care for severely ill children or to be with dying relatives or may reduce or rearrange their working hours in such cases.
Annual Leave (days per year)
Employees have a minimum entitlement to paid annual leave of five weeks in each year of work. When calculating leave according to working days (incl. Saturday) one is entitled to 30 days leave in each year of work. After 25 years of service this entitlement increases to six weeks. The working year commences on the date the employee started to work in the job. Minimally employed workers and part-time workers have the same entitlement as full-time employees.
How do vacation days expire?
Vacation days expire at the end of the year, and employees must use them within a certain timeframe.
Official Holidays
The official holidays for 2023 in Austria are:
• January 1st: New Year’s Day
• January 6th: Epiphany
• April 17th: Easter Monday
• May 1st: Labor Day
• May 25th: Ascension Day
• June 5th: Whit Monday
• June 15th: Corpus Christi
• August 15th: Assumption Day
• October 26th: National Day
• November 1st: All Saints’ Day
• December 8th: Immaculate Conception
• December 25th: Christmas Day
• December 26th: St. Stephen’s Day
Working on holidays and Sundays
Working on Sundays and public holidays is generally prohibited in Austria, but exceptions apply for certain industries. The weekly resting time is regulated by the Act on Work Resting (Arbeitsruhegesetz). Basically an employee is entitled to an uninterrupted resting period of 36 hours, starting on Saturday 1 p.m. and including Sunday (weekend rest). Again, there are a number of exceptional regulations. An employee working during the weekend rest is entitled to an uninterrupted weekly rest of 36 hours beyond the weekend.
Number of Working hours
The statutory working hours per week in Austria are 40 hours, and the maximum working hours per day are 10.
Overtime
Overtime is allowed in Austria, but it is subject to various rules and regulations. Overtime must be remunerated with an additional bonus of 50% in money or time balance.
Social Security (what does it cover)
Social security in Austria covers health insurance, pension insurance, accident insurance, and unemployment insurance.
Payroll
Salary payment currency
The local currency in Austria is the Euro (EUR).
Can salary be paid in a different currency other than the local currency?
Employers in Austria can pay salaries in a different currency, but employees must agree to this in writing.
Payment frequency
The typical payment frequency for employees in Austria is monthly. In some cases workers receive their wages weekly in cash.
VAT percentage
The standard VAT rate in Austria is 20%, with a reduced rate of 10% for certain goods and services.
Income Tax
All individuals resident in Austria are subject to Austrian income tax on their worldwide income, including income from trade or business, profession, employment, investments, and property. The ranges varying from 0% to 55%. For more information see https://www.notion.so/serviap/660ad73683dc4dda8b2a322fd11acf33?v=9ec63e5cb07944c7b62e21a8193941c2
Tax Payer Identification Number
The taxpayer identification number in Austria is called the “Steueridentifikationsnummer” or “Steuernummer.”
Offboarding
Voluntary resignation
In Austria, employees are generally free to resign from their job at any time, as long as they give notice according to their employment contract or the legal minimum notice period. The minimum notice period is generally four weeks, but it can be longer depending on the length of service.
Contract termination
A labor contract in Austria can be terminated by either the employer or the employee for a variety of reasons, including:
• Mutual agreement
• Expiration of a fixed-term contract
• Serious breach of contract by one of the parties
• Redundancy or restructuring
• Incapacity or disability
• Retirement
Justified Dismissal
A justified dismissal in Austria can occur in cases of serious misconduct, such as theft, violence, or discrimination. Other reasons may include repeated failure to perform duties, absenteeism, or severe health issues that prevent the employee from fulfilling their job duties.
Unjustified Dismissal
If an employee is dismissed without justification, they may be entitled to compensation. The amount of compensation varies depending on the length of service, with a maximum of 12 months’ salary for employees with more than 25 years of service. An unjustified dismissal also terminates an employment relationship with immediate effect; you have the possibility to complain to the labour and social security court.
In Austria, employers are required to pay severance pay to employees in cases of redundancy or restructuring. The amount of severance pay is generally calculated based on the employee’s length of service, with a minimum of two weeks’ salary for each year of service.
Minimum Notice Period
The minimum notice period in Austria is four weeks, but it can be longer depending on the length of service and the provisions in the employment contract. During the notice period, the employee is entitled to their regular pay and benefits.
Immigration
Visa process
Non-EU nationals who wish to work in Austria require a work visa, which is obtained from an Austrian embassy or consulate in the country of residence. The process includes submitting a completed application form, valid passport, passport-sized photographs, proof of accommodation, proof of health insurance, and a work permit. The processing time for a visa application can take up to several weeks, depending on the applicant’s nationality and the complexity of the case.
Visa documents
The mandatory documents required to obtain a work visa in Austria include a completed application form, a valid passport, passport-sized photographs, proof of accommodation, proof of health insurance, and a work permit. In addition to these documents, applicants may also need to provide evidence of their qualifications, work experience, and language skills.
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