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...
Costs | Setup | Monthly | Yearly |
---|---|---|---|
Salary | - | β¬2,798.33 | β¬33,579.96 |
Employer Contributions | - | β¬832.50 | β¬9,990.04 |
Refundable Deposit | β¬696.70 | - | - |
Payroll Fee | β¬696.70 | β¬696.70 | β¬8,360.35 |
Misc Expenses | β¬0 | β¬33.18 | β¬398.11 |
Insurance | - | - | β¬0 |
Total | β¬1,393.39 | β¬4,360.70 Monthly cost of employment* | β¬52,328.46 Annual cost of employment* |
Employer Payroll Contributions | Rate |
---|---|
Health Insurance | 3.78% |
Accident Insurance | 1.10% |
Old-Age Pension Insurance | 12.55% |
Unemployment Insurance | 3.00% |
Insolvency Guarantee Funds Contribution | 0.55% |
Family Burdens Equalization Levy | 3.90% |
Municipal tax | 3.00% |
Chamber of Commerce | 0.34% to 0.42% (Varies by province) |
Austrian law contribution to the mandatory employee pension fund | 1.53% |
Total Employment Cost | 29.75% β 29.83% |
The breakdown of payroll in Austria is as follows:
This is in accordance with the established Austrian payroll laws. π¦πΉ
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%. π°
Austrian Work Schedule
In Austria, the conventional workweek unfolds from Monday to Friday π.
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 β°.
Compensation for Extra Work Hours
In Austria, the amount of statutory holiday that one is entitled to depends on the length of service with the employer:
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 π¦πΉ.
The provision of sick leave in Austria varies according to the length of employment at one company π·:
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 π€°. After this, parents can opt for unpaid leave until their child turns two, with childcare benefits available. Fathers are also eligible for these benefits π¨βπ§βπ¦.
Date | Name |
---|---|
2024-01-01 | Neujahrstag |
2024-01-06 | Heilige Drei KΓΆnige |
2024-04-01 | Ostermontag |
2024-05-01 | Staatsfeiertag |
2024-05-09 | Christi Himmelfahrt |
2024-05-20 | Pfingstmontag |
2024-05-30 | Fronleichnam |
2024-08-15 | MariΓ€ Himmelfahrt |
2024-10-26 | Nationalfeiertag |
2024-11-01 | Allerheiligen |
2024-12-08 | MariΓ€ EmpfΓ€ngnis |
2024-12-25 | 1. Weihnachtstag |
2024-12-26 | 2. Weihnachtstag |
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 πΌ.
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 π.
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:
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.