Your Guide to Hiring Employees and Contractors in Austria
Ease of doing business
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%
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%
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
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;
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.
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.