Workforce Payments Guide Austria
Last updated: Dec 19, 2023
Papaya offers Virtual IBAN accounts (or “wallets”) to hold your funds segregated and safeguarded until payments are ready to be processed. Opening and managing corporate bank accounts can often be complex and time-consuming, requiring extensive checks and due diligence.
Papaya’s Virtual IBAN solution, built on the trusted infrastructure of JPMorgan, streamlines this process-making it faster, easier, and more cost-effective while ensuring your funds are secured.
Delivery Timeline
| Currency | Route | Payment settlement speed | Cut off Time |
|---|---|---|---|
| EUR | INSTANT | RTP | 16:00:00 |
| EUR | LOCAL | T | 14:00:00 |
Supported Payment Types
Salary payments, authorities payments, contractor payments.
3rd Party Payments
Social Security Contributions: Both the employer’s contribution and the employee’s contribution must be transferred to the health insurance provider collectively for all employees by no later than the 15th of the following month.
Regional Austria taxes and Payroll Tax: These are due monthly, by the 30th.
Contractor Payments
Papaya Global supports payments to contractors in Austria. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. It is advised for contractors to reach out to their bank to confirm how foreign currencies are handled
Bank Requirements
IBAN
| IBAN Example Austria | AT912250055358314933 |
| IBAN in print | AT91 2250 0553 5831 4933 |
| Country code | AT |
| Digit Code | 91 |
| Bank Code | 22500 |
| Bank Account Number | 55358314933 |
Check an IBAN
Type it in here and we will tell you if it is the right format.
Calculate an IBAN
Fill in the account details, and we will calculate the IBAN for you.
Payroll payment Frequency
Monthly
KYC
Companies are not subject to any specific Know Your Customer (KYC) rules. However, financial institutions and other regulated entities are encouraged to leverage digital KYC to streamline the customer onboarding process.
The KYC process typically involves the collection and verification of basic information about a company’s business operations and individuals. This can include the names of the company’s directors, business addresses, national insurance or social security numbers, company numbers, and so on.
It’s important to note that while there may not be specific KYC rules for companies, businesses are still expected to comply with anti-money laundering (AML) regulations and other relevant laws. This often involves conducting due diligence on clients to verify their identities and assess potential risks of illegal intentions for the business relationship.
Banking Regulations
The banking laws and regulations that impact cross-border workforce payments are primarily related to the hiring and posting of workers, as well as the fair payment and entitlements of these workers.
Cross-Border Hiring and Posting of Workers: Foreign employers or agencies make their employees available to an Austrian firm to carry out work. These workers are entitled to receive appropriate levels of payment which are usual for the area in question.
Entitlement to Fair Payment: Workers hired or posted across borders are entitled to at least the statutory payment set by regulations or collective agreements which is due to comparable employees of comparable employers at the place where they work.
Entitlement to Paid Leave: Workers hired or posted across borders are entitled to paid leave as laid down by the Paid Annual Leave Act as long as the extent of their paid leave is less in their home country.
Obligations of Employers: Foreign employers and agencies hiring out their employees on a permit-free basis to Austria have to notify the Central Coordination Office for the Monitoring of Illegal Employment (based at the Federal Ministry of Finance) in electronic form using the web form ZKO4.”
International Banks
| Bank Name | Bank Code |
|---|---|
| Banco do Brasil AG | 23700 |
| Bank of China (Central and Eastern Europe) Limited | 23800 |
| BNP Paribas SA | 23900 |
| Citibank Europe plc | 24000 |
| Commerzbank AG | 24100 |
| Credit Suisse (Luxembourg) SA | 24200 |
| Deutsche Bank AG | 24300 |
| HSBC Bank plc | 24400 |
| ING-DiBa Austria | 24500 |
| JPMorgan Chase Bank, N.A. | 24600 |
| Mizuho Bank Europe NV | 24700 |
| MUFG Bank (Europe) N.V. | 24800 |
| Société Générale | 24900 |
| Standard Chartered Bank | 25000 |
| UBS Europe SE | 25100 |
| UniCredit Bank AG | 25200 |
| VTB Bank (Europe) SE | 25300 |
Local Bank
| Bank Name | Bank Code |
|---|---|
| Addiko Bank AG | 19100 |
| Allianz Investmentbank AG | 19200 |
| AlpenBank AG | 19300 |
| Austrian Anadi Bank AG | 19400 |
| BAWAG P.S.K. | 19500 |
| Bank Austria | 19600 |
| Bank für Tirol und Vorarlberg AG | 19700 |
| Bank Gutmann AG | 19800 |
| Bankhaus Carl Spängler & Co. AG | 19900 |
| Bankhaus Krentschker & Co. AG | 20000 |
| Bankhaus Schelhammer & Schattera AG | 20100 |
| Bausparkasse der österreichischen Sparkassen AG | 20200 |
| Bausparkasse Wüstenrot AG | 20300 |
| BKS Bank AG | 20400 |
| BMW Austria Bank GmbH | 20500 |
| Capital Bank – GRAWE Gruppe AG | 20600 |
| DenizBank AG | 20700 |
| DolomitenBank Osttirol-Westkärnten | 20800 |
| easybank AG | 20900 |
| Erste Bank der österreichischen Sparkassen AG | 21000 |
| Hypo Alpe-Adria-Bank International AG | 21100 |
| Hypo NOE Landesbank für Niederösterreich und Wien AG | 21200 |
| Hypo Tirol Bank AG | 21400 |
| Hypo Vorarlberg Bank AG | 21300 |
| IMMO-BANK AG | 21500 |
| Kommunalkredit Austria AG | 21600 |
| Oberbank AG | 21700 |
| Österreichische Ärzte- und Apothekerbank AG | 21800 |
| Raiffeisen Bank International AG | 21900 |
| Raiffeisenlandesbank Niederösterreich-Wien AG | 22000 |
| Raiffeisenlandesbank Oberösterreich AG | 22100 |
| Raiffeisenlandesbank Steiermark AG | 22200 |
| Raiffeisenlandesbank Tirol AG | 22300 |
| Raiffeisenlandesbank Vorarlberg AG | 22400 |
| Salzburger Landes-Hypothekenbank AG | 22500 |
| Schoellerbank AG | 22600 |
| SPAR-FINANZ BANK AG | 22700 |
| UniCredit Bank Austria AG | 22800 |
| Volksbank Kärnten eG | 22900 |
| Volksbank Niederösterreich AG | 23000 |
| Volksbank Oberösterreich AG | 23100 |
| Volksbank Steiermark AG | 23200 |
| Volksbank Tirol AG | 23300 |
| Volksbank Vorarlberg e. Gen. | 23400 |
| Volksbank Wien AG | 23500 |
| WSK Bank AG | 23600 |
Payments Methods
Credit Cards: MasterCard and VISA are widely accepted.
PayPal: This is a popular online payment system that allows users to make payments and money transfers over the internet.
SOFORT: Also known as Pay now with Klarna, SOFORT is a popular online banking method in Austria.
EPS: Electronic Payment Standard (EPS) is an online transfer system developed jointly by several Austrian banks. This makes it the main bank transfer payment method in Austria.
Klarna: Klarna allows shoppers to buy now and pay later. It’s a popular ‘shop now, pay later’ payment method in Austria.
RatePay: RatePay is another ‘shop now, pay later’ payment method in Austria. Shoppers can choose between full payment or installments to settle the invoice amount.
Apple Pay and Google Pay: These digital wallet platforms and online payment systems by Apple and Google are gaining market share in Austria.
Amazon Pay: This online payment service owned by Amazon lets shoppers use their amazon.com account to make online purchases.
Trustly: Trustly is a convenient alternative to cards, which allows consumers to make or receive payment by signing into online banking without leaving the merchant’s website or mobile app.”
Cryptocurrency
Cryptocurrency is acceptable in Austria. However, using cryptocurrency in commercial transactions and the exchange of cryptocurrency for local fiat currency may require a banking or payment services license. Under current legislation, cryptocurrencies do not constitute legal tender for purposes of Austrian law.
While cryptocurrencies are accepted, their use is not as widespread as traditional payment methods, and the acceptance can vary depending on the specific merchant or service provider.