austria

Austria

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Minimum wage

What are the minimum wage requirements?

Austria does not have statutory minimum wage. Majority of the wage-earners in Austria are regulated by collective agreements which are negotiated by the social partnership. As per the current agreement, wage earners will earn nothing less than 1500 € per month.

Contributions & Taxes

How much are the contributions & taxes?

As of January 2020, the rate of contribution is 7.55% of the basis for contributions. In some cases, you can reduce the monthly contributions for self-insurance. Additionally, students may co-insure their spouses and children. Generally, contributions for voluntary insurance are €440.32 per month.

Employer

Generally, companies in Austria are taxed at the standard rate of 25% and returns are due by 30 June of the following year.

Corporate

At the level of the company, profits are taxed at the standard corporate income tax (CIT) rate of 25%, regardless of whether profits are retained or distributed.

Employee

In Austria, the average single worker faced a net average tax rate of 32.6% in 2020, compared with the OECD average of 24.8%. In other words, in Austria the take-home pay of an average single worker, after tax and benefits, was 67.4% of their gross wage, compared with the OECD average of 75.2%.

Income Tax

In Austria, income is taxed at a proportional rate, based on your annual income. Income tax applies to employment, capital assets, trade, and craft sales. Additionally, it applies to income earned from rental properties. Rates are subject to yearly change. Currently, they vary between 20% and 55%.

Payroll

What is the payroll cycle?

The payroll cycle is monthly, and the employer must pay wages by the last working day of each month unless stipulated otherwise in a collective bargaining agreement or employment contract.

Is there 13th salary in Austria?

It is customary to pay 13th and 14th salaries in Austria.  The annual salary is paid in 14 equal payments. The 13th and 14th payments are paid out in June and November.

Labor Rules

Working Hours

In Austria, standard maximum working time is limited to 12 hours per day and 60 hours per week (Arbeitszeitgesetz, AZG §9 (1)). Moreover, a 48-hour per week average needs to be maintained over a 17-week reference period.

Probation period rules

Probationary periods are common in Austria and are often included in employment agreements. According to the Austrian Salaried Employees Act, a probationary period may be agreed for a maximum duration of one month for white-collar employees.

Notice Period 

Two months, if the employment lasted two to five years; three months, if the employment lasted five to 15 years; four months, if the employment lasted 15 to 25 years; five months, if the employment lasted more than 25 years.

Severance Period

If the employment relationship is terminated after three years employment, the employee is entitled to severance pay of two months salary. After 25 years, the employee is entitled to twelve months salary.

Leave and Benefits

Leave and Benefits rules

Public holidays

  • 1 January (Saturday): New Year’s Day
  • 6 January (Thursday): Epiphany
  • 18 April (Monday): Easter Monday
  • 1 May (Sunday): Labor Day (also referred to as May Day)
  • 26 May (Thursday): Ascension Day
  • 6 June (Monday): Whit Monday
  • 16 June (Thursday): Corpus Christi
  • 15 August (Monday): Assumption of Mary
  • 26 October (Wednesday): National Day
  • 1 November (Tuesday): All Saints’ Day
  • 8 December (Thursday): Immaculate Conception
  • 24 December (Saturday): Christmas Eve bank holiday
  • 25 December (Sunday): Christmas Day
  • 26 December (Monday): Saint Stephen’s Day

Sick leave

Sick leave entitlement varies based on the length of employment:

  • 1 year of employment: 6 weeks
  • 2-15 years of employment: 8 weeks
  • 16-25 years of employment: 10 weeks
  • 26+ years of employment: 12 weeks

Any sick leave beyond the above entitlement is covered by social security.

A medical certificate must be provided.

Maternity leave & Paternity leave

Maternity leave in Austria is 16 weeks. Expectant mothers are prohibited from working 8 weeks before the child’s expected due date and for 8 weeks (12 weeks in the case of a Cesarean section or high-risk delivery) after the child’s birth.

Maternity leave is paid by a weekly allowance through the Social Security provider. This allowance is based on the average earnings of the last three months before the Maternity Leave began. After 16 weeks, the mother is entitled to unpaid Maternity Leave until the child is two years old (during this period, the mother receives childcare pay under the Child Care Payment Act).

Fathers are entitled to one month of unpaid paternity leave which may begin any time after the child’s birth up until the child turns two years old. This month of leave is often referred to as ‘Daddy Month’. The new father must notify his employer three months before the estimated date of birth to be granted this leave.

In Austria, parental leave starts when maternity leave finishes.

Parents can take parental leave until the child reaches the age of 24 months and are entitled to payment under the Child Care Payment Act from social security during their parental leave.

Fathers can share maternity leave with mothers.  They can switch ‘leave periods’ between the two parents twice  throughout the parental leave period, although these must be at least two months apart, mother and father are prohibited from taking parental leave at the same time

Other leave (marriage, bereavement, exam leave)

There are various additional leave periods to which employees are entitled:

  • 2 weeks of paid leave to care for a sick child under the age of 12
  • An employee can also request up to 6 months of unpaid leave to care for an immediate family member
  • 1 – 3 days paid leave for marriage or bereavement (the exact days leave will be outlined in the employee’s collective bargaining agreement or employment contract)

Insurance

* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*

Visa

Native Teams can support you in finding a Visa in Austria. Contact us and we will send a comparison of Visa packages and prices*