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Give Anyone in Austria a Permanent Job with Flexhire

Know the person that you want to hire as a permanent employee but don't have a legal entity in Austria? No problem, Flexhire can help! Hire and pay permanent employees through Flexhire on your behalf via our Employer of Record (EOR) Services. Read below to find out more...

If you don't have a legal entity in Austria, we can help. We take the headache and risk by employing the person on your behalf in Austria through our Employer of Record (EOR) service. We create the local contracts, benefits, run payroll and know the HR rules so you build a great team fast and hassle free.

If you have contractors you want to pay in Austria you can also do that via Flexhire. Finally, if you have an open role in Austria, we can help you find the right person to hire smarter and faster.

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CostsSetupMonthlyYearly
Salary-€2,798.33€33,579.96
Employer Contributions-€832.50€9,990.04
Refundable Deposit€704.68--
Payroll Fee€704.68€704.68€8,456.18
Misc Expenses€0€33.56€402.68
Insurance--€0
Total

€1,409.36

€4,369.07
Monthly cost of employment*
€52,428.85
Annual cost of employment*

Employer Payroll ContributionsRate
Health Insurance3.78%
Accident Insurance1.10%
Old-Age Pension Insurance12.55%
Unemployment Insurance3.00%
Insolvency Guarantee Funds Contribution0.55%
Family Burdens Equalization Levy3.90%
Municipal tax3.00%
Chamber of Commerce0.34% to 0.42% (Varies by province)
Austrian law contribution to the mandatory employee pension fund1.53%
Total Employment Cost29.75% – 29.83%

The average salary in Austria is €2,798.33/month or $2,918.73/month.
The minimum wage in Austria is €1,700/month or $1,773.14/month.
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The breakdown of payroll in Austria is as follows:

  • Employers have a monthly payroll cycle. The payment of wages is due by the last working day of each month, unless otherwise stated in a mutual agreement or employment contract. πŸ“†

This is in accordance with the established Austrian payroll laws. πŸ‡¦πŸ‡Ή

Additional Salary Payments

Austrian law mandates 14 salary payments per year. The additional 13th and 14th salaries are disbursed semi-annually, at the end of June and November respectively. Each of these payments is subject to a reduced tax rate of 6%. πŸ’°

Austrian Work Schedule

In Austria, the conventional workweek unfolds from Monday to Friday πŸ“†.

The restriction on working hours is set at 10 hours daily and 50 hours weekly, with exceptions allowing up to 12 hours daily and 60 hours weekly ⏰.

Compensation for Extra Work Hours

  • Overtime carried out during weekdays is rewarded with an additional 50% of the salary πŸ’ΌπŸ’°.
  • If overtime takes place on weekends or public holidays, the remuneration is twice the salary πŸŽ‰πŸ’°.
  • The law limits continuous overtime work in Austria. Any extension of working hours must be mutually decided upon by employers and employees in advance πŸ“.

In Austria, the amount of statutory holiday that one is entitled to depends on the length of service with the employer:

  • Up to 6 months of service: Employees accrue two working days of holiday per month πŸ“….
  • After 6 months of service: Employees are entitled to 25 working days of holiday per year πŸ—“οΈ.
  • After 25 years of service: Employees are entitled to 30 working days of holiday per year πŸ“†.

Public Holidays

Austria observes 10 official public holidays in 2023, plus three additional 'de facto' holidays, for a total of 13, although some of these fall on weekends πŸ‡¦πŸ‡Ή.

Sick Leave

The provision of sick leave in Austria varies according to the length of employment at one company 😷:

  • For 1 year of employment: Six weeks of full-pay sick leave and four weeks of half-pay sick leave.
  • For 2-15 years of employment: Eight weeks of full-pay sick leave and four weeks of half-pay sick leave.
  • For 16-25 years of employment: Ten weeks of full-pay sick leave and four weeks of half-pay sick leave.
  • For 26 or more years of employment: Twelve weeks of full-pay sick leave and four weeks of half-pay sick leave.

Parental Leave

In Austria, the maternity leave policy is generous, allowing female employees 16 weeks of paid leave. During this period, they receive their average earnings from the past 13 weeks 🀰. After this, parents can opt for unpaid leave until their child turns two, with childcare benefits available. Fathers are also eligible for these benefits πŸ‘¨β€πŸ‘§β€πŸ‘¦.

Public Holidays in Austria

DateName
2024-01-01New Year's Day
2024-01-06Epiphany
2024-04-01Easter Monday
2024-05-01National Holiday
2024-05-09Ascension Day
2024-05-20Whit Monday
2024-05-30Corpus Christi
2024-08-15Assumption Day
2024-10-26National Day
2024-11-01All Saints' Day
2024-12-08Immaculate Conception
2024-12-25Christmas Day
2024-12-26St. Stephen's Day

Introductory Employment Phase

In Austria, the typical probationary period is limited to one month. However, for apprenticeships, a longer probationary period of three months is usually set πŸ’Ό.

During this phase, either the employee or the employer can decide to terminate the employment contract without needing a specific reason. No severance pay is required in such cases, although the party ending the contract must provide notice of at least one week.

End of Employment Agreement

In Austria, there are several ways an employer can bring an employment contract to an end, including mutual agreement, unilateral termination, and termination due to the end of employment πŸ“.

The severance pay depends on the reason for termination. For instance, in cases of immediate termination due to serious misconduct like theft, no severance pay is granted. However, all employees hired after January 1, 2003, are entitled to severance pay, paid monthly by the employer into the severance pay fund. The fund contribution is 1.53% of the employee's monthly gross salary.

The notice period in Austria varies based on the length of employment:

  • Employment of up to 2 years: six weeks' notice.
  • Employment between 2 and 5 years: two months' notice.
  • Employment between 5 and 15 years: three months' notice.
  • Employment between 15 and 25 years: four months' notice.
  • Employment of over 25 years: five months' notice.

The notice period can be extended by up to six months through a contract or collective bargaining agreement.

If you're planning on living or working in Austria, you'll need to understand the visa requirements. For EU/EEA and Swiss nationals, along with their family members, there's no need for a visa to enter Austria or a residence permit to live there.

For a stay of up to three months, there are no formalities to worry about. But, if you plan to stay longer, you'll need to have health insurance and enough funds to support yourself and your family. You'll also need to provide proof that you're employed, self-employed, or training in Austria. Within four months of your arrival, you'll need to register with the competent authorities, who will issue you a 'right of residence document'.

If you're a citizen of an EU/EEA country, you can also apply for an official identification with photo for EEA citizens from the authorities. There are also special arrangements for 'privileged third-country nationals', who are dependents of EU/EEA and Swiss nationals but don't hold EU/EEA/Swiss citizenship themselves.

If you're a third country national (not an EEA citizen or Swiss national), you'll need a Visa. The Red-White-Red Card, for instance, is issued for two years and allows you to settle and work in Austria. You're eligible for this card if you're highly qualified, a skilled worker in a shortage occupation, a graduate of an Austrian university, a self-employed key worker, or a start-up founder.

For stays longer than 90 days up to six months, you'll need a six-month residence visa. This visa also allows you to work in Austria. Schengen visas are required for short-term business stays, and EU Blue Cards are for highly-qualified workers from outside the EU.

For stays up to 90 days within 180 days, some third country nationals won't need a visa, depending on their citizenship. To be granted a residence permit, you'll need to meet several requirements, including having adequate funds, health insurance, and accommodation, and not posing a threat to public order or security.

If you're looking to work in Austria, EU/EEA and Swiss nationals have the right to do so. For other non-Austrian nationals, you'll need immigration permission and a work permit. The general rule is that employers must apply for work permits for all foreign nationals they want to employ, but there are several exceptions to this rule.