Hire employees in

Austria, hassle-free

Hire employees in Austria, hassle-free

With Deel, your business can easily hire employees in Austria. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Austria is 5 days with Deel.

Download the Guide

Currency

EUR

Capital

Vienna

Official Language

German

Payroll Cycle

Monthly

Hire employees in Austria. No entity needed.

Usually, to hire in Austria, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Austria also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Austria quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Austria
built right in

Deel allows you to provide localized benefits for employees in Austria within minutes. All in one manageable online dashboard.

  • Family Burden Equalization Fund
  • Monthly Work Equipment Allowance
  • Private Healthcare - Unisure (optional)

Our quickstart guide to hiring in Austria

Navigate the tabs below to learn everything you need to know about hiring an employee in Austria

Minimum Wage Requirements

The minimum wage for Austria depends on the industry of the company and the seniority of the employee. The minimum wage ranges from EUR 1,522.50 to EUR 2,094.31.

Individual Income Tax

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

Gross Annual Income Tax Rate (%)
0 - 11,000 0%
11,001 - 18,000 20%
18,001 - 31,000 35%
31,001 - 60,000 42%
60,001 - 90,000 48%
90,001 - 1,000,000 50%
Above 1,000,000 55%

Employer Cost

The employer cost is generally estimated at 30.8% of the employee salary.

  • Social insurance - 21.23%
  • Employee pension fund - 1.53%
  • Family burden equalization fund - 3.90%
  • Surplus to fund above - 0.38%
  • Municipal tax - 3.0%
  • Viennese employers tax - 0.16%
  • Monthly work equipment allowance - 0.56%

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.

Maternity Leave

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.

Paternity Leave

Employees are entitled to 1 month of paid paternity leave. The leave can be taken 1 day after birth, and at latest 1 week after birth. The employee must give the employer a 3 months notice, and is not entitled to 13th or 14th salary during this leave. The employee is paid a family time bonus (Familienzeitbonus) that entitles them to receive €22,60 per day from Social Insurance.

Parental Leave

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

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.

Termination Requirements

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

Notice Period

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.

Length of Employment Notice Period
Less than 2 years 6 weeks
Between 2 to 5 years 2 months
Between 5 to 15 years 3 months
Between 15 to 20 years 4 months
Over 25 years 5 months

Severance for Employees

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.

Paid Time Off

Both full-time and part-time employees are entitled to 25 days of paid time off (PTO) a year. PTO accrues monthly with 2.08 days per month. Employees are eligible for PTO as soon as it accrues.

Public Holidays

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

Onboarding

Onboarding takes 5 business days.

Employment Contract Details

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

Probation Period

Probation periods are not mandatory. The minimum probation period is 1 day and the maximum probation period is 30 days (1 month).
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Download the complete guide to hiring in Austria

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Hiring in Austria, hassle-free

With Deel, your business can easily hire employees in Austria. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

30.8%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Austria?

View our Employee Cost Calculator

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