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Remote’s guide to employing in

Austria
austria flag}

Make employment in Austria easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Austria, all in one easy-to-use platform.

  • Capital City

    Vienna

  • Currency

    Euro (€, EUR)

  • Languages

    German

  • Population size

    8,902,600

  • Remote-Owned Local Entity

Services available in this country:
Employer of Record ProductContractor Management
A beautiful Austrian sunset

Facts & Stats

Austria Map Illustration
  • Capital City

    Vienna

  • Currency

    Euro (€, EUR)

  • Languages

    German

  • Population size

    8,902,600

  • Ease of doing business

    Very easy

  • Cost of living index

    $$$$ (23 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    20%

  • GDP - real growth rate

    2.729% (2018 est.)

Austria (German: Österreich), officially the Republic of Austria (German: Republik Österreich), is a landlocked East Alpine country in the southern part of Central Europe. It is composed of nine federated states (Bundesländer), one of which is Vienna, Austria's capital and its largest city. Austria is consistently ranked in the top 20 richest countries in the world by GDP per capita terms. The country has achieved a high standard of living and in 2018 was ranked 20th in the world for its Human Development Index.

Grow your team in Austria with Remote

Looking to employ workers in Austria? Companies hiring in Austria must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Austria on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Austria team. You can also pay contractors now in Austria with Remote.

Risks of misclassification

Austria, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Austria may lead to fines and penalties for the offending company.

Employing in Austria

Employment law in Austria is governed by statutory regulations codified in various federal laws. These include the statutes on white-collar workers (Angestelltengesetz), statutes concerning working times (Arbeitszeitgesetz), paid holiday (Urlaubsgesetz) and labour protection act (Arbeitnehmerschutzgesetz).

Employment contracts are governed by collective agreements and virtually all employment agreements are covered by a collective agreement. Austrian employment law provides strong labour conditions and protections for employees, so employing people will be an important investment and commitment.

Temporary agencies are popular options for more flexible workforce arrangements. For these and many other reasons, the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Austria.

Minimum Wage

“There is no statutory minimum wage in Austria, but national collective bargaining agreements set minimum wages by job classification and years of service for each industry. This provides for an effective minimum wage of €1,500 EUR per month based on a 40-hour work week.”

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.

Special payments of 13th and 14th months are also part of the Annual Gross Salary.

Onboarding Time

We can help you get a new employee started in Austria fast. The minimum onboarding time we need is only 3 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

13 Public holidays

Jan
Monday, 1 January 20241New Year's Day (Neujahr)
Saturday, 6 January 20242Epiphany (Heilige Drei Könige)
Apr
Monday, 1 April 20243Easter Monday (Ostermontag)
May
Wednesday, 1 May 20244Labour Day (Staatsfeiertag (Tag der Arbeit))
Thursday, 9 May 20245Feast of the Ascension of Jesus Christ (Christi Himmelfahrt)
Monday, 20 May 20246Pentecost Monday (Pfingstmontag)
Thursday, 30 May 20247Feast of Corpus Christi (Fronleichnam)
Aug
Thursday, 15 August 20248Assumption of Mary (Mariä Himmelfahrt)
Oct
Saturday, 26 October 20249National Day (Nationalfeiertag)
Nov
Friday, 1 November 202410All Saints' Day (Allerheiligen)
Dec
Sunday, 8 December 202411Feast of the Immaculate Conception (Fest der Unbefleckten Empfängnis)
Wednesday, 25 December 202412Christmas Day (Weihnachtstag)
Thursday, 26 December 202413Saint Stephen's Day (Stephanstag)

Competitive benefits package in Austria

Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe. Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they call home.

Our benefits packages in Austria are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Local market insights

Our core benefits (which often include things like healthcare) are required in most countries where we hire. We do not require customers to offer benefits in Austria due to its strong public system and local laws that protect us (and you!) against claims of non-discriminatory hiring practices. However, we do recommend that employers in Austria offer benefits to their employees based on market standards. Note that we do not add a markup on any benefits premiums or administration costs.

For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.

Taxes in Austria

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Austria.

  • 12.55%

    Pension

  • 3.90%

    Family Allowance Fund

  • 3.78%

    Health Insurance

  • 3.00%

    Unemployment

  • 3.00%

    Municipal Tax

  • 1.30%

    Employer Provision Fund

  • 1.20%

    Accident Insurance

  • 1.53%

    Severance fund

  • 0.42%

    Surcharge on Family Allowance Fund

Types of leave

All full-time workers are legally entitled to 25 days paid holiday leave a year. In addition, full-time workers have 13 paid public holidays a year. The minimum amount of annual leave depends on the lenght of the employment relatinoship, with tenure below 25 years resulting in 25 days of annual leave entitlement and above 25 years resulting in 30 days.

Employment termination

Termination process

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.

Fair Pricing in Austria

Employer of Record

Hire and pay your global team

Starting at US$599/month

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app