Hire and pay employees in
Austria, hassle-free

The individual income tax ranges from 0% to 55%. Income tax is calculated according to progressive rates.

The employer cost is generally estimated at 29.77%

• Social insurance - 20.98%
• Social insurance based on 13th and 14th salaries - 20,53%
• Employee pension fund - 1.53%
• Disability Levy - 17.35 EUR/month
• Family burden equalization fund - 3.90%
• Surplus to fund above - 0.36%
• Municipal tax - 3.0%
• Viennese employers tax - 2 EUR/started week in a month.
• Monthly work equipment allowance - 30 EUR /month (25 EUR is tax-free, 5 EUR is taxable) - employer cost paid to the employee and not to the statutory bodies.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Pregnant employees are entitled to 16 weeks of paid leave. 8 weeks must be taken before the child's birth. 8 weeks must be taken after the child's birth. The employee will receive the average net income of the last 3 months during this period, and the Social Insurance Agency will be responsible for this pay.

The employee can extend leave for a period between 12 and 28 months. The benefit amount depends on the duration chosen by the employee but is capped at €2,000 and is paid by the Social Insurance Agency.

Employees are entitled to 2 months of parental leave (Karenz) until the child turns 24 months old. Both parents can decide how to distribute the time off. Either parent can take parental leave. Parents are entitled to payment under the Child Care Payment Act. Parents may choose from two childcare allowance systems:

• Childcare allowance account (flat-rate system)
• Income-related childcare allowance

Parental leave can be extended. It is unpaid.

Sick leave in Austria is complex. There are no maximum amount of days for paid sick leave. Employees are entitled to sick leave based on their length of the employment relationship with the same employer, ranging from 6 to 12 weeks.

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

In general indefinite contracts may be terminated without cause as long as regulatory notice periods are followed. Fixed-term contracts have additional restrictions and conditions.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Probation period
  • Without cause provided notice period is followed
  • Disloyalty to employer
  • Incapacity to carry out job responsibilities
  • Failure to carry out agreed work (without legitimate reason)
  • Failure to comply with employer’s reasonable instruction or seeks to persuade other employees to disobey such instructions
  • Assaults and acts immorally towards the employer, other employees
  • Operates an independent commercial business or carries out commercial transactions within the employer’s business on their own account or that of a third party
  • Employee is prevented from carrying out their agreed work for a considerable period owing to imprisonment or some other reason apart from an illness or accident
• By the expiration of the contract

The minimum notice period is 6 weeks and the maximum notice period is 5 months. Notice periods will be increased according to the length of the employment.

In Austria, the severance pay scheme requires employers to pay 1.53% of the monthly salary to an employee severance fund. At the end of the employment term, the employee may request disbursement of the collected amount or leave it in the fund for further investment.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Austria celebrates 13 national holidays as well as regional holidays. National holidays include:

1. New Year
2. Epiphany
3. Easter Monday
4. National Holiday
5. Ascension Day
6. Whit Monday
7. Corpus Christi
8. Assumption Day
9. National Day
10. All Saints' Day
11. Immaculate Conception
12. Christmas Day
13. St. Stephen's Day

Contracts must be in German or English and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• Name
• Address
• Start date
• Length of the employment
• Place of work
• Nature of work
• Salary
• Working hours
• Vacation time
• Termination period and date