Easily manage employment in Austria

Payroll services in Austria

Austria has a well-regulated economy with key industries in manufacturing, finance, tourism, and technology. With strict labor laws and tax regulations, employers in Austria must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Austria

Employers in Austria must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Austria does not have a statutory minimum wage; however, industry-specific collective agreements set minimum wage standards.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Austria is 40 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, typically 150% of the regular wage, or compensatory time off.

Taxation and social security contributions

• Personal income tax: Austria has a progressive income tax system with rates ranging from 0% to 55% depending on income levels.
• Employer contributions:
• Social security: Approximately 21.23% of the gross salary.
• Accident insurance: 1.2% of the gross salary.
• Employee contributions:
• Social security: Approximately 18.12% of the gross salary.
• Corporate tax: The corporate income tax rate in Austria is 24% (reducing to 23% in 2024).
• Tax reporting: Employers must file payroll taxes and contributions with the Austrian tax authorities regularly.

Payroll compliance in Austria

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Employers must stay updated on changes to Austria’s labor laws and tax regulations to avoid penalties.

Quick facts: Important considerations for employers

• Payroll frequency: Salaries are generally paid monthly.
• Currency: Payroll in Austria is processed in Euros (EUR).
• Tax reporting: Employers must file payroll taxes and contributions with the Austrian tax authorities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Payroll compliance: Employers must stay updated on changes to tax rates and reporting requirements.

Run payroll in Austria with Remote

Managing payroll in Austria requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties. The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.