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Payroll and benefits guide

Austria

CapitalVienna
Fiscal Year1 January - 31 December
Date Formatdd/mm/yyyy
CurrencyEUR (Euro)
Payroll FrequencyMonthly
Employer Taxes29.5% – 29.6%
Employee Costs18.07%

Overview

Languages
German
Income tax
0% – 55%
VAT
20%
Reduced rates: 13%, 10%

Contributions

Employer

20.98%
Social security (sickness, unemployment, pension, accident, other)Up to a monthly assessment base of EUR 6,930
3.7%
Family Burdens Equalisation Fund (DB)
3%
Municipal tax (Kommunalsteuer)
1.53%
Employee pension fund (MVK severance fund)
0.31% – 0.40%
Chamber of Commerce surcharge (DZ)Rate depends on the province
29.5% – 29.6%
Total employer cost

Employee

18.07%
Social security (sickness, unemployment, pension, other)Up to a monthly assessment base of EUR 6,930; reduced rates apply to low incomes
18.07%
Total employee cost

Authority Payments

Authority Payment
Tax office (Finanzamt)
Paid To
Wage tax, DB, and DZ
Due Date
15th day of the following month
Method
Bank transfer via FinanzOnline
Authority Payment
Austrian Health Insurance Fund (ÖGK)
Paid To
Social security and MVK contributions
Due Date
15th day of the following month
Method
Monthly electronic contribution report and bank transfer
Authority Payment
Municipality
Paid To
Municipal tax
Due Date
15th day of the following month
Method
Bank transfer, with an annual return

Minimum Wage & Working Hours

Minimum wage
None / —
No statutory minimum wage; minimum pay is set by sector collective agreements, which cover nearly all employees
Standard working hours
40 hours per week, 8 hours per day
Many collective agreements set 38.5 hours as the normal week
Overtime
Paid at a 50% premium or compensated with time off at 1.5x; a maximum of 12 hours per day and 60 hours per week applies

Leave

  • Annual leave5 weeks (25 working days)Rises to 6 weeks after 25 years of service
  • Sick leave6–12 weeks at full pay, plus 4 weeks at half payDuration depends on length of service; the employer pays, then sickness benefit from ÖGK
  • Maternity leave8 weeks before and 8 weeks after birth12 weeks after birth for premature, multiple, or C-section births; paid by ÖGK as maternity benefit
  • Paternity leave1 month (Papamonat)Unpaid by the employer; the state pays a family time bonus
  • Parental leaveUp to the child's 2nd birthdayUnpaid by the employer; the state pays childcare allowance
  • Public holidays13 days

Termination

Probation period
Up to 1 month
Notice period
Employer notice: 6 weeks (under 2 years); 2 months (2–5 years); 3 months (5–15 years); 4 months (15–25 years); 5 months (25+ years)
Severance pay
No direct severance for contracts since 2003; the employee draws on the MVK fund, funded by the 1.53% employer contribution
13th salary
Not required by statute, but almost all collective agreements require 13th and 14th salaries (holiday and Christmas pay), taxed at favorable rates
Notes
Notice ends at the end of a calendar quarter unless the contract allows the 15th or the last day of a month

Benefits

  • Statutory social insuranceMandatory

    Health, pension, unemployment, and accident coverage

  • 13th and 14th salariesMandatory

    Holiday pay in summer and Christmas pay in winter, set by collective agreements

  • Meal vouchersCommon

    Tax-advantaged lunch allowance

Visas & Work Permits

  • Red-White-Red Card

    Requirements
    Job offer and enough points under the skilled-worker criteria

    Issued for up to 2 years, then renewable

  • EU Blue Card

    Requirements
    University degree and a job offer meeting the salary threshold

    For highly qualified non-EU workers

FAQ

Sources

Last updated:

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