Payroll and Benefits Guide Austria
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
3.78%
|
Health Insurance, a maximum contribution threshold applies at 6,450 EUR per month. |
|
1.10%
|
Accident Insurance, a maximum contribution threshold applies at 6,450 EUR per month.
|
|
12.55%
|
Old-Age Pension Insurance, a maximum contribution threshold applies at 6,450 EUR per month.
|
|
2.95%
|
Unemployment Insurance, a maximum contribution threshold applies at 6,450 EUR per month.
|
|
0.55%
|
Insolvency Guarantee Funds Contribution, a maximum contribution threshold applies at 6,450 EUR per month.
|
|
3.90%
|
Family Burdens Equalization Levy.
|
|
3.00%
|
Municipal tax
|
|
0.34% to 0.42% (Varies by province)
|
Chamber of Commerce
|
|
1.53%
|
Austrian law contribution to the mandatory employee severance fund
|
| 29.70% – 29.78% | Total Employment Cost |
| Employee Payroll Contributions | |
|
3.87%
|
Health Insurance
|
|
10.25%
|
Old-Age Pension Insurance
|
|
2.95%
|
Unemployment Insurance |
| 17.07% |
Total Employee Cost |
| Employee Income Tax | |
|
0.00%
|
Up to 13,308 EUR annually |
|
20.00%
|
13,309 EUR – 21,617 EUR annually |
|
30.00%
|
21,6178 EUR – 35,836 EUR annually |
| 40.00% | 35,837 EUR – 69,166 EUR annually |
|
48.00%
|
69,167 EUR – 103,072 EUR annually |
|
50.00%
|
103,073 EUR-1,000,000 EUR annually |
| 55.00% | Over 1,000,000 EUR annually |
Employer taxes
Employee taxes
Minimum Wage
General
Austria does not have a statutory minimum wage. However, the Austrian law against wage and social dumping (Lohnund Sozialdumping-Bekämpfungsgesetz) regulates that similar wage conditions must apply to those working in Austria in the same branch. This is currently 1,700 EUR per month for a full-time employee.
MINIMUM WAGE (PER MONTH)
Payroll
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.
13th Salary
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.
Authority Payments
|
Authority Payment |
Paid To |
Due Date |
Method |
|
Graz taxes |
FA Graz-Stadt |
Monthly, by the 30th |
eCheck (Local) |
|
Regional Austria taxes |
GKK Niederoesterreich |
Monthly, by the 30th |
eCheck (Local) |
|
Regional Austria taxes |
GKK Oberoesterreich |
Monthly, by the 30th |
eCheck (Local) |
|
Vienna taxes |
GKK Wien |
Monthly, by the 30th |
eCheck (Local) |
|
Payroll Tax |
Stadt Wien Buchhaltungsabt.33 |
Monthly, by the 30th |
eCheck (Local) |
Working Hours
General
Working hours are regulated by the Austrian Working Hours Act, the Working Hours Rest Act, and collective bargaining agreements. The standard workweek is eight hours per day and 38.5 or 40 hours per week, depending on the collective bargaining agreement in place, with a maximum of 12 hours per day (including overtime). In addition, the average weekly working hours must not exceed 48 hours for 17 consecutive weeks.
Overtime
- Maximum Ordinary Hours: The standard work limit is 8 hours per day or 40 hours per week. Any hours worked beyond these limits constitute overtime (Überstunden).
- Note: Many Collective Bargaining Agreements set the normal weekly working time at 38.5 hours.
- Absolute Maximum Daily/Weekly Hours: The total working time, including overtime, generally cannot exceed 12 hours per day or 60 hours per week in any single week.
- Average Weekly Maximum (EU Directive): The average weekly working time must not exceed 48 hours over a 17-week reference period (CBAs may extend this period).
- Employee Right of Refusal: Employees have the right to refuse overtime without giving a reason if it would cause their working time to exceed 10 hours per day or 50 hours per week. They must not suffer any disadvantages as a result of this refusal.
- Consent and Obligation: Overtime must generally be agreed upon by both the employer and employee, unless it is necessary due to unforeseen circumstances or stipulated as an obligation in the employment contract.
Mandatory Overtime Compensation Rates
Overtime compensation is mandatory. It can be paid as a premium in money or as compensatory time off in lieu (Zeitausgleich).
| Compensation Element | Statutory Requirement (Arbeitszeitgesetz) | Notes |
| Minimum Pay Rate | 150% (Hourly wage plus a 50% premium). | This is the statutory minimum for all standard overtime. |
| Time Off in Lieu | $1.5$ hours of paid time off for every $1$ hour of overtime worked. | This can be agreed upon instead of the monetary premium. |
| Right to Choose Compensation | If the daily working time exceeds 10 hours or the weekly time exceeds 50 hours, the employee can independently choose between monetary compensation or time off in lieu. | The premium must be paid even if the overtime was unlawful. |
Weekend and Holiday Work
Work performed on weekends and public holidays is governed by the Rest Periods Act and typically carries higher premiums, often stipulated in CBAs:
-
Sunday and Holiday Work: Work on Sundays and public holidays typically mandates a 100% premium (Total 200%) on the hourly wage, unless specific exceptions apply or a CBA stipulates otherwise. The employee is also generally entitled to a substitute rest day.
Leave
Annual leave (vacation)
The statutory holiday entitlement in Austria is five weeks (25 working days) per year for an employee who has completed six months of employment. Employees with less than six months of service accrue two working days per month. Once an employee completes 25 years or longer for the same employer, the entitlement increases to six weeks (30 working days).
Up to 12 years of prior employment in other jobs and periods of education can also be credited to an employee, whereby the required number of years of service with the same employer is reduced to 13 years. There can also be deviations from this rule in different collective agreements. Employees accrue leave based on the service commencement date. Unused leave can be carried over to the following year.
Paid Time Off
In Austria, statutory annual leave accrues each working year and unused leave does not simply disappear at year-end — it is automatically carried over into later years and can be taken until it expires under the statute of limitations. Under the law, unused vacation expires only after two years from the end of the year in which it was earned, meaning employees effectively have up to about three years to use it before it’s time-barred. Employers must ensure employees actually take their leave; otherwise unused leave continues to carry forward and cannot be universally forfeited simply by year-end.
Public Holidays
Public Holidays falling on weekends are usually lost.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day / State Holiday | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Whit Monday (Pentecost Monday) | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | Standard holiday |
| 15 August 2026 | Saturday | Assumption of Mary | Standard holiday |
| 26 October 2026 | Monday | Austrian National Day | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | St. Stephen’s Day (Boxing Day) | Standard holiday |
Sick Days
Sick leave entitlement varies based on the length of employment:
- One year of employment: Six weeks at full pay and four weeks at half pay covered by the employer
- Two-15 years of employment: Eight weeks at full pay and four weeks at half pay covered by the employer
- 16-25 years of employment: 10 weeks and four weeks at half pay covered by the employer
- 26+ years of employment: 12 weeks and four weeks at half pay covered by the employer
Any sick leave beyond the above entitlement is covered by social security.
A medical certificate must be provided.
Maternity Leave
Maternity leave in Austria is 16 weeks. Expectant mothers are prohibited from working eight weeks before the child’s expected due date and for eight weeks (12 weeks in the case of a Caesarean 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).
Paternity Leave
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. 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.
Parental 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
There are various additional leave periods to which employees are entitled:
- Two weeks of paid leave to care for a sick child under the age of 12
- An employee can also request up to six months of unpaid leave to care for an immediate family member
- One to three days paid leave for marriage or bereavement (the exact days leave will be outlined in the employee’s collective bargaining agreement or employment contract)
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Upon termination of employment and depending on the reason for termination, the employee may be entitled to severance pay. Austria has two schemes linked to the employment contract start date.
For all employees who started their employment after 01.01.2003, they are in the “Abfertigung neu” severance new system. This means that, instead of paying a severance payment at the end of employment, companies regularly pay into a company pension fund (Betriebliche Vorsorgekassa) and thus save the severance pay contributions for their employees.
After at least 3 years of payment from the company pension fund, no matter where the employee was working, the EE can request payment of the severance pay from the company pension fund in these cases:
- The employer terminates the employment relationship
- The employment relationship ends due to expiry of the notice period
- Employee and their employer terminate the employment relationship by mutual agreement
- Employees are dismissed through no fault of their own
- Employees resign with good cause
- Employees resign during part-time parental leave, i.e. during part-time employment under the Maternity Protection Act or the Paternity Leave Act
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Salaries are typically paid monthly, and in most cases on the last working day of the month (or sometimes the first working day of the following month). | The law requires notice periods and proper termination procedures; severance payment systems exist. | Payment into the employee’s bank account is common practice. |
Notice Period
The notice period varies based on the length of employment:
- Up to 2 years of employment: 6 weeks’ notice
- 2-5 years of employment: 2 months’ notice
- 5-15 years of employment: 3 months’ notice
- 15-25 years of employment: 4 months’ notice
- 25+ years of employment: 5 months’ notice
The notice period can be increased by up to six months subject to a contractual agreement as long as it is the same notice period for both employee and employer.
Severance Pay
Two systems of statutory severance pay exist in Austria. One applies to employment contracts commenced before January 1, 2003 (old severance pay). The other system is applicable for employees with a starting date after January 1, 2003 (new severance pay).
The difference between the two systems is that within the old regime of statutory severance pay, the employee has a direct claim against the employer unless an employee terminates the employment relationship or is dismissed for cause. Within the new severance pay, every month during employment, the employer is obliged to pay 1.53% of the gross salary to an external company pension fund (Betriebliche Vorsorgekasse). The employee then has a severance right against that fund, but there is no additional severance payable by the employer.
Probation Period
The standard probation period in Austria must not exceed one month, except for apprenticeships whose probation period is typically three months.
Setting Up a Business
Setting up a legal entity
To set up a limited company in Austria the founders should follow these steps:
- Contact an attorney which will oversee the process. Define the activity, name and managing director of the limited company. Prepare the opening of an Austrian bank account.
- Sign a memorandum of establishment/incorporation or in the case of single-member companies: a declaration of establishment.
- Appoint company management (through resolution by those holding the shares in the company, with notarisation).
- Pay a cash contribution: A minimum share capital amount: 35,000 euros, of which at least 17,500 euros must be paid in cash.
- Apply for the Company register with a notarized application form. Attach the following documents to the application:
1. Notarized certified memorandum
2. Resolution regarding the appointment of the company management. (Not necessary if already included in the memorandum.)
3. Certified declaration of sample signature by the company management
4. Proof of the paying-in of the cash contribution - For a company to carry out operations in Austria, a registration of the business is usually required and this is issued by the relevant authorities.
- Registration with the tax office.
For additional information, please visit: https://www.usp.gv.at/en/gruendung.html
Registration as an employer
Employers must register with the Social Insurance Authority for Business (SVA) within one month of registering with the local tax authority. Employers must register all new employees with the relevant health insurance provider prior to the new employee hire date. All applications should be submitted electronically through the ELDA portal. (the employer or the authorised service provider must submit various notifications to the social insurance by means of electronic data transfer (ELDA).
Monthly payments of withholdings from employee’s salaries should be made by the 15th of the month following payroll. All payments and reporting are submitted through ELDA using a contribution statement.
Common Benefits
- Meal vouchers, approximately 50 – 100 EUR per month
- Gym/wellness 50 – 100 EUR per month
- Transportation allowance approximately 30 EUR per month
- Private health insurance approximately 50-100 EUR per month
- Private pension 10% of the annual salary
- Additional leave, five extras days for a total of 30 days
- Home office/Teleworking allowance, approximately 300 EUR per year (Home allowance is Tax-free).
In addition, employees can receive Tax-free gifts at Christmas time, as noncash benefits of up to € 186 per person per year (e.g. in the form of vouchers, gift coins, highway toll stickers, etc., but not cash).
Immigration
VISA
Non-EU/EEA/Swiss citizens must apply for a Schengen visa to enter Austria. In contrast, citizens from the European Union (EU), European Economic Area (EEA), or Switzerland can work in Austria without a visa for up to 90 days as Austria is part of the Schengen Area of Europe.
Longer-term visas, work permits, and residence permits are approved based on a point criteria system.
In summary, the type of work visa one needs depends on the length of stay and the applicant’s qualifications.
For example, as a highly qualified worker from a third country:
- One may either enter Austria under a Job Seeker Visa to look for employment.
- If one receives an employment offer during the visa’s validity period, one may apply for a Red-White-Red card at the appropriate residence authority in Austria.
- If one has received an employment offer, one may apply for a Red-White-Red card with the appropriate Austrian representation in one’s home country or country of residence.
An applicant must reach a minimum of 70 points according to the list of criteria as a prerequisite in both cases.
Alternatively, as a third-country citizen, one may be granted an EU Blue Card (for which there is no link to the points system), if one:
- Has completed a course of study at a university or other tertiary educational institution with a minimum duration of three years
- Has received a binding job offer for at least one year in Austria, and the employment corresponds to the applicant’s education
- Will earn a gross annual income of at least one and a half times the average yearly gross income of full-time employees
- Is qualified for the position and the labor market test (Arbeitsmarktprüfung) shows no equally qualified worker registered as a job seeker with the Public Employment Service (AMS) available for the job
Individuals who are not EEA citizens or Swiss nationals may apply for a Red-White-Red Card (combined residence and work permit) as skilled workers in a shortage occupation, valid for 24 months if they can:
- Provide proof of completed training in a shortage occupation under the regulation
- Show evidence of a binding job offer in Austria and the prospective employer is willing to pay the minimum stipulated by law, regulation, or collective agreement.
- Reach a minimum of 55 points
Once the initial term with the Red-White-Red or EU Blue Card has been completed (or is due to be completed), one may apply for a Red-White-Red Card Plus. The Red-White-Red Card entitles you as a non-EEA citizen or Swiss national to a fixed-term settlement and unlimited labor market access (as a self-employed or an employed person, not limited to a specific employer).
VAT
General
The standard VAT rate in Austria is 20%.
A reduced rate of 13% and 10% is applied to some products, reduced rates are applied to services. Products with a reduced rate include for example, solid mineral fuel, heating oil, and gas oil.
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Payroll and Benefits Guide
in Austria
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day / State Holiday | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Whit Monday (Pentecost Monday) | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | Standard holiday |
| 15 August 2026 | Saturday | Assumption of Mary | Standard holiday |
| 26 October 2026 | Monday | Austrian National Day | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | St. Stephen’s Day (Boxing Day) | Standard holiday |
Is there a legal limit to how long a non-compete clause in an employee’s contract can run?
Hi Paul, a non-compete clause can run for a maximum of one year after the termination of an employee’s contract.
What happens if you don’t report sick leave?
Hi, In Austria, the employee has one week to report that they are sick by providing a medical certificate. If they fail to do so, sick pay only begins from the day that the sickness is reported.
will be a problem if i take unpaid leave for 2 months during RWR Card and also don’t pay socail insurance ?
it will depend on the specific type of RWR card you hold. Some RWR cards are tied to specific employers, so if they leave that employer they will need to apply for a new card. Best to check the details of the specific card.
I need to do a company salary review – applying a percentage increase to the annual gross salary. My company wants to consider as annual salary the monthly salary times 12 – saying 13 and 14 months are allowance. Can you confirm best practices ?
This depends on the collective labor agreement in place when it comes to the best practice. 13th salary is in December (called Christmas allowance) and 14th salary in May (it is called holiday allowance and should be paid by June 30).
Hi, if hired through Austrian contract, from EU country and it’s the first time, how can i calculate net salary, fringe company car and and other things may have an impact?
thanks
Here is a tool you can use to calculate the gross net of any taxable income – https://bruttonetto.arbeiterkammer.at/
Hey Guys,
Can you advise what is the monthly cost of living (rent for 3 BHK apartment, food, education in international school etc.) for family of 4 if you are moving to Austria from another country? Tax rates are very high close to 50% if you are earning more than 90K Euros.
Hello, unfortunately, this is not something we can advise on.
Hello, can you please confirm what are the rules on tax/social charges contribution on EE and ER side for severance paid in Austria. Thank you
Hello, there is an obligatory severance fund of 1.53%. This percentage has to be paid by the employer to a private broker that manages the fund.
The employee does not contribute anything to the fund. The worker is entitled to severance pay upon termination of the employment relationship, after a minimum of three years of uninterrupted work.
Do employees have jubilee bonus in Austria for ten or twenty years of working?
Entitlement to Jubilee bonuses are determined by the specific Collective Agreement or Employment Contract that the worker falls under. Workers should check their specific contractual documents to understand their specific entitlements.
Hi
Is it true that if you are staying at accommodation your employer has organized for you they aren’t allowed to charge you more than a specific daily rate which changes if board is included too?
Also do those working here on a temporary working visa get taxed less than Austrian Citizens or do they at least experience some type of tax rebate?
Are you referring to someone on a business trip? Where is the business trip taking place and for how long?
Hi team,
would need your support to clarify the fact that can we hold last salary of an employee in case he/she doesn’t handover company asset even after leaving the company.
The legality of this will very much depend on the circumstances of the exit and what agreement is in place regarding property return. The employer should see advise for a local legal adviser based on the specific terms of this worker.
Is there a legal, mandatory annual rise (in %) if you work for an Austrian company, regardless if your company is in a collective agreement or not?
There is no blanket legal requirement that all salaries must increase automatically each year. Mandated salary adjustments are usually from a collective agreement.
If an employee receives a pay change or promotion, is an amended contract needed?
For routine salary increases mandated by a collective agreement or company policy, a simple written notice to the employee may suffice.
For a promotion (or significant change in duties, responsibilities, or pay), an addendum to the employment contract is the best practice to avoid ambiguity and meet legal documentation requirements.