Country Guides
Austria
Employment in Austria at a glance
Capital
Vienna
Language
German
Remote workers
450,000 – 520,000
Currency
€ Euro (EUR)
Working hours
40 hours per week
Public holidays
14 per year
Minimum monthly salary
€1,776.00
Tax year
Jan 1 – Dec 31
Date format
DD/MM/YYYY
Misclassification penalties
Misclassifying employees as independent contractors in Austria may result in fines, retroactive payment of social security contributions, unpaid taxes, employee benefits, and potential legal claims from the worker.
Fun fact
Austria has 14 statutory public holidays, one of the higher totals in Europe.
Taxes in Austria
Employer contributions
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Employment tax: 21%-23% - Employer contributions cover pension, health insurance, unemployment insurance, accident insurance, and other statutory funds.
Employer social security contribution
Social security contributions: Sickness [Health]
Contribution amount: 3.78 %
Social security contributions: Unemployment
Contribution amount: 2.95%
Social security contributions: Pension
Contribution amount: 12.55%
Social security contributions: Accident
Contribution amount: 1.10%
Social security contributions: Miscellaneous
Contribution amount: 0.60%
Employee contributions
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Income tax: 0%-55%
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Social security contributions: 18%
Employee social security contributions
Social security contributions: Sickness [Health]
Contribution amount: 3.87 %
Social security contributions: Unemployment
Contribution amount: 2.95%
Social security contributions: Pension
Contribution amount: 10.25%
Social security contributions: Accident
Contribution amount: 10.00%
Social security contributions: Miscellaneous
Contribution amount: 1.00%
Income tax
Gross income: €13,539 and below
Tax rate: 0%
Gross income: over €13,539 up to €21,992
Tax rate: 20%
Gross income: over €21,992 up to €36,458
Tax rate: 30%
Gross income: over €36,458 up to €70,365
Tax rate: 40%
Gross income: over €70,365 up to €104,859
Tax rate: 48%
Gross income: over 104,859 up to 1,000,000
Tax rate: 50%
Gross income: over 1,000,000
Tax rate: 55%
Employer of Record in Austria
What is an EOR?
An Employer of Record is the legal employer of a worker in Austria. As such, the Employer of Record takes care of all Austrian compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.
EOR responsibilities
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Ensuring their employment is compliant with local employment laws
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Processing local payroll
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Filing employment related taxes and returns
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Issuing payslips to the employee
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Distributing salary payments
How it works
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Company
Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.
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Boundless
Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.
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Employee
The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.
Benefits in Austria
Statutory benefits in Austria
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Public health insurance
All employees are automatically covered under Austria’s statutory health insurance system. Managed by regional branches of the Austrian Health Insurance Fund (Österreichische Gesundheitskasse - ÖGK). Coverage Includes: General practitioner and specialist visits, Hospital stays (public hospitals), Prescription medications (with co-pay), Maternity care, Mental health services, Preventive check-ups etc. Funded through employer and employee social insurance contributions and is part of the ~21% social insurance portion by employer while employee contributes approx 18%.
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Social security
The social security system is comprehensive and covers a wide range of benefits for employees, including health insurance, pension insurance, unemployment insurance, and accident insurance. It is mandatory for all employees, with contributions paid by both employees and employers.
Non-mandatory benefits in Austria
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Private health insurance
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Meal vouchers/lunch allowance
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Transportation allowance
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Bonuses
-
Supplementary pension plans
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Flexible working arrangements
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Additional leave
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Training and professional development
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Health and wellness benefits
Rights & protections in Austria
Dienstzettel (document containing work-related information and conditions)
Whistleblower protection
Data privacy
Equal treatment and anti-discrimination
Protection from harassment
Pay equity
Paid annual leave
Salaries: 13th and 14th-month salary
Dismissal protection
Pay transparency
Leave in Austria
Paid time off
25 working days (5 weeks). After 25 years of service, the entitlement increases to 30 working days (6 weeks)
Sick leave
up to 26 weeks
Maternity leave
16 weeks paid by the Austrian health Insurance
Paternity leave
Fathers are entitled to 1 month of paternity leave without pay until the child turns 2 years old
Employment conditions in Austria
Probation
The statutory probation period in Austria is up to 1 month. During this period, either party may terminate the employment relationship at any time without notice or justification.
Payments in Austria
Payment frequency
Salaries are typically paid monthly, usually at the end of the month as specified in the employment contract or collective agreement.
End of employment in Austria
In Austria, employment may be terminated by either the employer or the employee in accordance with statutory notice periods, the employment contract, or applicable collective agreements. In cases of serious misconduct, termination without notice may be possible, and employees may challenge dismissals they consider unfair.
FAQs
Hiring in Austria can be done in four ways. You can run payroll from your HQ for short-term arrangements where tax residency stays in your home country, engage contractors for project-based work, set up a local entity to hire directly, or partner with an Employer of Record. An EOR offers a straightforward way to hire employees in Austria compliantly, without establishing a local company.
Contractors work well when the relationship is project-based, and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Austria, employment is the right structure under Austrian law, covering entitlements like paid annual leave, sick pay, and social security contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Austria.
HR compliance in Austria means your policies and procedures respect applicable Austrian employment laws and regulations. When you hire in Austria, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave (25 working days), minimum wage (€1,776/month), tax credits, and the 40-hour working week. Following these is fundamental for running the business well.
An Employer of Record is the legal employer of the individual in Austria for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 16 weeks of maternity leave and 25 working days of annual leave. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.
Boundless ensures HR compliance in Austria by partnering with local employment lawyers and advisers who review contracts and documentation for legal accuracy. We align on key requirements such as payroll, social protection, data protection, and notice periods. When sensitive issues arise, our internal team works with local experts to resolve them quickly and in line with Austrian regulations.
In Austria, both employers and employees pay social security contributions. Employers typically contribute around 21% to 23% of gross salary, while employees contribute about 18%, subject to a statutory ceiling. Employees also pay progressive income tax ranging from 0% to 55%, depending on income. Use our salary calculator to estimate total employment taxes and costs.
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