Employer of Record in Austria

General Information

• Currency: Euro (EUR)
• Employer Taxes: 29.70% – 29.78%
• Payroll Frequency: Monthly
• Employee Costs: 17.07%
• Capital: Vienna
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: Austria does not have a statutory minimum wage. However, under the Austrian Law on Wage and Social Dumping (Lohn- und Sozialdumping-Bekämpfungsgesetz), similar wage conditions must be applied to employees working in the same sector within Austria. Currently, this amount is set at 1,700 EUR per month for full-time employees.

Payroll

Payroll Cycle: The payroll cycle in Austria is monthly, with employers required to pay wages by the last working day of each month unless otherwise specified in a collective bargaining agreement or employment contract.

13th Salary

In Austria, it is customary to pay 13th and 14th salaries. The annual salary is distributed in 14 equal installments, with the 13th and 14th payments made in June and November, respectively.

Working Hours

General: Working hours in Austria are governed by the Austrian Working Hours Act, the Working Hours Rest Act, and collective bargaining agreements. The standard workweek is eight hours per day and between 38.5 and 40 hours per week, depending on the applicable collective bargaining agreement. The maximum daily working hours, including overtime, can be up to 12 hours. Additionally, the average weekly working hours must not exceed 48 hours over a period of 17 consecutive weeks.

Overtime: Work performed in excess of 40 hours per week is compensated at a rate of 150% of the regular pay. Alternatively, overtime can be given as time off in lieu at a ratio of 1.5 days for every day of overtime worked. Collective bargaining agreements may specify higher rates for overtime pay or time off in lieu.

Leave

Annual Leave (Vacation):

In Austria, employees are entitled to five weeks (25 working days) of statutory annual leave after completing six months of employment. Employees with less than six months of service earn two working days of leave per month. After 25 years of continuous employment with the same employer, the entitlement increases to six weeks (30 working days) of annual leave.

Up to 12 years of prior employment and periods of education can also be credited, reducing the required service duration with the current employer to 13 years. Collective agreements may provide different provisions. Leave accrues based on the service commencement date, and unused leave can be carried over to the following year.

Public Holidays

Public Holidays falling on weekends are usually lost.

Sick Days

Sick leave entitlement in Austria is determined by the length of employment as follows:

• Up to 1 year: Six weeks at full pay and four weeks at half pay, covered by the employer.
• 2 to 15 years: Eight weeks at full pay and four weeks at half pay, covered by the employer.
• 16 to 25 years: Ten weeks at full pay and four weeks at half pay, covered by the employer.
• 26+ years: Twelve weeks at full pay and four weeks at half pay, covered by the employer.

Any sick leave beyond these entitlements is covered by social security. A medical certificate is required for sick leave.

Maternity Leave

In Austria, maternity leave lasts for 16 weeks. Expectant mothers are prohibited from working for eight weeks before the expected due date and for eight weeks after the child’s birth (or 12 weeks in the case of a Caesarean section or high-risk delivery).

During maternity leave, the weekly allowance is provided by Social Security and is based on the average earnings of the three months prior to the start of the leave. After the initial 16 weeks, mothers are entitled to unpaid maternity leave until the child is two years old. During this period, they receive childcare pay under the Child Care Payment Act.

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Paternity Leave

Fathers in Austria are entitled to one month of unpaid paternity leave, which can be taken anytime after the child’s birth and up until the child turns two. This leave is commonly known as ‘Daddy Month.’ To be granted this leave, the father must notify his employer at least three months before the estimated due date.

Parental Leave

In Austria, parental leave begins when maternity leave ends. Parents can take parental leave until the child reaches 24 months of age and are eligible for payment under the Child Care Payment Act from social security during this period.

Fathers have the option to share maternity leave with mothers. They can alternate ‘leave periods’ between the two parents up to twice during the parental leave period, with each period being at least two months apart. However, both parents are not allowed to take parental leave simultaneously.

Other Leave

Employees in Austria are entitled to various additional leave periods:

• Two weeks of paid leave to care for a sick child under the age of 12.
• Up to six months of unpaid leave to care for an immediate family member.
• One to three days of paid leave for marriage or bereavement, with the specific number of days detailed in the employee’s collective bargaining agreement or employment contract.

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