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.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
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.
Probation Period
The probationary period followed in Austria ranges between one to four weeks.
13th Month Pay
The 13th month salary is customary and is normally paid at the end of June.
Employee Benefits
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 hours in excess of those stated in the work 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%.
Employer Payroll Cost:
| Category |
Contribution
(From Monthly Gross Salary)
|
| Sickness |
3.78% |
| Unemployment |
3% |
| Pension |
12.55% |
| Accident |
1.20% |
| Miscellaneous |
0.7% |
Employee Payroll Cost:
| Category |
Contribution
(From Monthly Gross Salary)
|
| Sickness |
3.87% |
| Unemployment |
3% |
| Pension |
10.25% |
| Miscellaneous |
1% |
Employee Income Tax
| Income over (EUR) |
Income up to (EUR) |
Tax Rate (%) |
| 0 |
12,816 |
0 |
| 12,816 |
20,818 |
20 |
| 20,818 |
34,513 |
30 |
| 34,513 |
66,612 |
42 |
| 66,612 |
99,266 |
48 |
| 99,266 |
1,000,000 |
50 |
| Above 1,000,000 |
- |
55 |
VAT
The standard VAT rate in Austria is 20%.
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. See: Austria Employment Laws
The notice period for both probationary and permanent employees in Austria ranges from 6 weeks to 5 months.
Severance pay
Employers must provide severance pay at the rate of 1.53% of their gross monthly salary to the severance pay fund, known as ‘Abfertigungskasse’.
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.