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.
- Health Insurance
- Worker Compensation Insurance
- 13th Salary
- Unemployment Insurance
- Labour Market Supplementary Pension
Currency: Euro (EUR)
Official language: German
Payroll Cycle: Monthly
Paid Time Off
In Austria, full time and part time employees are entitled to 25 working days of paid time off.
- New Year’s Day
- Easter Monday
- State holiday Austria
- Ascension Day
- Corpus Christi
- Assumption Day
- Austrian National Day
- All Saint’s Day
- Immaculate Conception
- St. Stephen’s Day
Individual Income Tax
The individual income tax average ranges up to 55% and depends on many variables, such as marital status, level of income, and others.
The employer cost up to 31% of employee gross remuneration
Employment Contract Details
Contracts must be in German and can be bilingual. They must be in writing and signed by both parties. Within the mandatory information that a contract must include: name, start date, contract termination conditions, classification of the collective agreement corresponding to the company. Also salary, including additional payments and the name of the pension fund.
Minimum probation period is 1 day and maximum probation period is 1 month. However, probation period is not mandatory.
Minimum Wage Requirements
Minimum wage in Austria is EUR 1,200. The salary will vary according to the collective agreement which is determined by the business of the employer. Deel is categorized as an IT business, therefore, the minimum wage is EUR 1,614.
Maximum working hours and overtime
The weekly working day in Austria is 40 hours. The standard is from Monday to Friday. The maximum working hours may vary according to the collective agreement and what is negotiated in the employment contract. According to Deel's collective agreement, the standard work schedule is 38.5 hours per week.
Bonus and expense payments
In Austria there are two mandatory bonuses that are paid every year in the form of 13 and 14 salary. These extra salaries will be taxed like any standard salary. The payment dates are June and November.
- Maternity leave: employees are entitled to take up to 28 months of paid leave. However, is mandatory to take at least 8 weeks before and 8 weeks after the childbirth. The person will receive the average net income of the past 3 months before leave and the payment will be done by the Social Insurance Agency.
- Paternity leave: employees are entitled to take up to 28 months of paid leave. However, is mandatory to take at least 8 weeks before and 8 weeks after the childbirth. The person will receive the average net income of the past 3 months before leave and the payment will be done by the Social Insurance Agency.
Parents are entitled to take a minimum of 3 months of unpaid parental leave between childbirth and the child’s second birthday. They can also take up to 1 month at the same time and decide who will take the remaining month.
In Austria, employees are entitled to unlimited sick leave. For the first 10 days of sickness it will be paid by the employer. Starting the 11th day, the Social Insurance Agency will be responsible of 50% of the salary. Upon 4 weeks, 100% will be paid by the authority.
Termination requirements for employees in
Work contracts can be terminated by both parties and for most cases, a justification for the termination of the contract is not necessary. However, both parties must comply with the notice periods agreed by law and established in the employment contract.
Throughout employment, employers contribute 1.53% of the employee’s gross salary to a severance fund. On termination, the employee can choose to be paid out the accrued amount or simply transfer the fund to a new employer who will continue to contribute.
Terminations are effective at the end of the calendar quarter or, when stipulated in the employment agreement.
The minimum notice period is 6 weeks, regardless of the category of the employee. Notice period can be increased up to 6 months.
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