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EOR IN Austria
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A guide to employing and growing your team in Austria
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Austria consistently maintains its position among the world’s most prosperous nations, regularly appearing in the top 20 for GDP per capita. This economic strength translates into an exceptionally high standard of living for its citizens, a fact reflected in its global standing; notably, the country was ranked 20th in the world on the Human Development Index in 2018. Austria’s labor market is heavily influenced by Collective Bargaining Agreements (CBAs), which cover approximately 98% of all employees. These agreements often dictate minimum wages, bonuses, and specific working conditions beyond the statutory baseline. A unique hallmark of the Austrian system is the 13th and 14th-month salary (holiday and Christmas bonuses), which are legally required and taxed at a lower preferential rate. As of 2026, there is no statutory national minimum wage, but CBAs typically ensure a monthly minimum of at least EURO1,500 to EURO2,000 for full-time work.
Employer Contributions
Pension: 12.55%
Family Allowance Fund (DB): 3.70%
Health Insurance: 3.78%
Unemployment: 2.95%
Municipal Tax: 3.00%
Accident Insurance: 1.10%
Provident Fund (MVK): 1.53%
Surcharge on Family Allowance Fund (DZ): 0.40% (Average rate, varies by region)
Total Employer Contribution: ~21.48%
Employee Payroll Taxes
Pension: 10.25%
Health Insurance: 3.87%
Unemployment: 2.95% (Note: This is reduced or zero for very low-income earners).
Miscellaneous (Chamber of Labour/Housing): 1.00% (Includes 0.5% Chamber of Labour levy and 0.5% Housing promotion levy).
Total Employee Contribution: ~18.07%
Employee Income Tax Rates
Up to EURO12,816: 0%
EURO12,816 – EURO20,818: 20%
EURO20,818 – EURO34,513: 30%
EURO34,513 – EURO66,612: 40%
EURO66,612 – EURO99,266: 48%
EURO99,266 – EURO1,000,000: 50%
Over EURO1,000,000: 55%
Statutory Leave
Employees are entitled to 25 working days of paid annual leave (5 weeks) per year. This increases to 30 days (6 weeks) after 25 years of service. Austria observes 13 public holidays. If a holiday falls on a weekend, it is typically lost, although most CBAs provide additional benefits for holiday work.
Pregnancy and Maternity Leave
Maternity protection prohibits expectant mothers from working for 8 weeks before and 8 weeks after birth (12 weeks for multiple births). During this time, they receive Maternity Benefit (Wochengeld) equal to 100% of their average net income from the last 3 months, paid by social insurance.
Paternity Leave
Fathers are entitled to a “Family Month” (Papamonat), which is a one-month (28-31 days) period of leave immediately following the birth. While unpaid by the employer, fathers receive a Family Time Bonus of approximately EURO54.87 per day (roughly EURO1,700 for the month) from the state.
Work-Related Injury Leave
Sick Leave: Employees receive continued pay by the employer for 6 to 12 weeks at 100% depending on seniority. After this, they move to 50% pay for 4 weeks before transitioning to state sick pay.
Care Leave: Up to 1 week of paid leave per year to care for a sick close relative living in the same household.
Termination Process
Termination must not be “socially unjustified.” While a specific reason is not always required upfront, if a Works Council exists, it must be notified one week before the notice is given. Employees with at least 12 months of service have stronger protections against unfair dismissal.
Notice Period
Notice periods are tenure-based and usually mirror the following for white-collar roles:
1st and 2nd Year: 6 weeks.
3rd to 5th Year: 2 months.
6th to 15th Year: 3 months.
16th to 25th Year: 4 months.
After 25 Years: 5 months.
Probation Period
A probation period (Probemonat) can be agreed upon for a maximum of one month. During this period, the contract can be terminated by either party at any time without notice or justification.