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Your Guide to Hiring Employees and Contractors in Austria

Capital city

Vienna

Currency

Euro

Language(s)

German

Ease of doing business

Very easy

Payroll frequency

Monthly

Employer taxes

21.08%

Payroll

Monthly Payroll

Employees are paid in equal monthly installments by the last working day of each calendar month unless otherwise stipulated in their contract. Special monthly payment for the 13th and 14th months are paid out in June and November.

Minimum Wage Requirements

Range from EUR 1522 to EUR 2094 depending on industry and seniority of employee.

Individual Income Tax

From 0% to 55%. Income tax is calculated according to progressive rates.

Gross Annual Income    Tax Rate (%)

0 – 11,000                     0%

11,001 – 18,000             20%

18,001 – 31,000             35%

31,001 – 60,000             42%

60,001 – 90,000             48%

90,001 – 1,000,000        50%

Above 1,000,000           55%

Employer Cost

The employer cost is generally estimated at 30.8% of the employee salary.

  • Social insurance: 21.23%
  • Employee pension fund: 1.53%
  • Family burden equalization fund: 3.90%
  • Surplus to fund above: 0.38%
  • Municipal tax: 3.0%
  • Viennese employers tax: 0.16%
  • Monthly work equipment allowance: 0.56%

Working Hours

Work Week

Monday to Friday.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week.

Maximum 12 hours per day (including overtime)

Overtime paid at 150% regular pay or as time off in lieu at a ratio of 1 to 1.5 days

Employment Termination

Austrian employers in general have these options to terminate an employment agreement:

  • Termination by mutual consent;
  • Unilateral termination;
  • Resignation on the end of the employee;
  • Urgent dismissal of the employee, for example in case of theft or any other serious misconduct;

Notice period

The statutory notice period for an employer depends on the duration of employment, ranging from six weeks’ notice for less than or equal to two years’ service and up to five months for more than 25 years’ service.

Probation periods

A probationary period of 1 month is generally agreed to in the employment contract in Austria, during which either party can terminate the employment contract without explanation.

The employer must provide at least one week notice to the work council before giving an employee notice of dismissal. If the work council requests, the employer must consult the council before the dismissal can take place.

These details are subject to change by the respective government and regulatory authorities in each country.

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