Your quick guide on talent and labor compliance norms in Austria
Capital
Vienna
Currency
Euro (EUR)
Languages
German
Payroll Frequency
Monthly
GDP per Capita
$58,155.20
Employer Tax
21.23%
Talent Overview
The landlocked nation of Austria is a federation of nine states, one of which, Vienna, is the capital. Austria, considered as one of the richest countries in terms of GDP per capita, has a high standard of living, and was ranked 11th in the Legatum Prosperity Index 2021 on account of its journey to prosperity. Along with a highly developed industry, tourism is also an essential part of the Austrian economy.
Major economic hubs:
Vienna, Upper Austria, Lower Austria
Skills in demand:
Construction joiners, Nursing professionals, Data processing, Mechanical Engineering, Power Engineering.
Local Universities
The top local universities in Austria are as follows:
Local: 1
World: 106
Local: 2
World: 181
Local: 3
World: 369
Local: 4
World: 503
Local: 5
World: 570
Salary Data
Some of the common jobs found in Austria, along with their monthly salary, are listed below:
| Job Title | Average Monthly Salary ( EUR) | Average Monthly Salary ( USD) |
| Corporate Treasurer | 5,030 | 5,601 |
| Financial Manager | 8,090 | 9,009 |
| Office Manager | 3,440 | 3,831 |
| Database Administrator | 3,970 | 4,421 |
| Sales Manager | 6,630 | 7,383 |
Talent Sourcing Tips
2,154,000
Austrian employment laws safeguards the rights of its employees. It is a combination of EU and Austrian laws. Know more about employment regulations followed in Austria below.
It is not mandatory to have written agreements for employment and even oral agreements are acceptable. Language of collective agreements or contracts can be in German and English.
The probationary period followed in Austria ranges between one to three months.
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 6 Jan | Epiphany | National holiday |
| 19 Mar | Saint Joseph’s Day | State holiday |
| 1 Apr | Easter Monday | National holiday |
| 1 May | Labor Day / May Day | National holiday |
| 4 May | Saint Florian’s Day | State holiday |
| 9 May | Ascension Day | National holiday |
| 20 May | Whit Monday | National holiday |
| 30 May | Corpus Christi | National holiday |
| 15 Aug | Assumption of Mary | National holiday |
| 24 Sep | Saint Rupert’s Day | State holiday |
| 10 Oct | Plebiscite Day | State holiday |
| 12 Oct | Yom Kippur | Optional Holiday |
| 26 Oct | National Day | National holiday |
| 1 Nov | All Saints’ Day | National holiday |
| 11 Nov | Saint Martin’s Day | State holiday |
| 15 Nov | Saint Leopold’s Day | State holiday |
| 8 Dec | Immaculate Conception | National holiday |
| 24 Dec | Christmas Eve | Bank holiday |
| 25 Dec | Christmas Day | National holiday |
| 26 Dec | St. Stephen’s Day | National holiday |
| Type of leave | Time Period | Mandatory |
| Annual leave/Earned Leave | 25 days | Yes |
| Sick Leave | 42 days | Yes |
| Maternity Leave | 16 weeks | Yes |
Payroll
Payroll Cycle
The employee must be paid monthly.
Minimum Wage
Austria does not follow statutory minimum wage and depends on the employment agreement. On the whole, the employees will not be paid less than 1500 EUR.
Overtime Pay
Overtime hours in excess of those stated in the employment contract would be paid at a rate of 150% of the employee’s salary. Overtime on Sundays, public holidays and work between 12:00 AM to 7:00 AM will be compensated at a rate of 200%.
Bonus
The 13th month salary is customary and is normally paid at the end of June.
Taxes
| Category | Contribution (From Monthly Gross Salary) |
| Sickness | 3.78% |
| Unemployment | 3% |
| Pension | 12.55% |
| Accident | 1.20% |
| Miscellaneous | 0.7% |
| Category | Contribution (From Monthly Gross Salary) |
| Sickness | 3.87% |
| Unemployment | 3% |
| Pension | 10.25% |
| Miscellaneous | 1% |
| Income over (EUR) | Income up to (EUR) | Tax Rate (%) |
| 0 | 11,000 | 0 |
| 11,001 | 18000 | 20 |
| 18,001 | 31,000 | 35 |
| 31,000 | 60,000 | 42 |
| 60,001 | 90,000 | 48 |
| 90,001 | 1,000,000 | 50 |
| Above 1,000,000 | 55 |
The standard VAT rate in Austria is 20%.
Offboarding & Termination
Termination in Austria can be done on a mutual consent basis, which can be communicated in verbal or written format, of which the latter is preferred. There can also be dismissal of the employee by the employer on the grounds of a justified reason. When an employee decides to resign, the employment is terminated with immediate effect. In case of expiration of a fixed contract, no action is required.
The notice period for both probationary and permanent employees in Austria ranges from 6 weeks to 5 months.
Employers must provide severance pay at the rate of 1.53% of their gross monthly salary to the severance pay fund, known as ‘Abfertigungskasse’.
Visa and Immigration
The citizens of the Switzerland and European Economic Area (EEA) can work in Austria. For other non-Austrian nationals, immigration permission and a work permit are required.
Non-European citizens need a Schengen Visa to enter Austria. If one receives employment during the visa tenure, they can apply for Red-White-Red card.
