Austria is a federal republic comprised of nine provinces covering an area of 83,878 square kilometers. It is bordered by Switzerland, Liechtenstein, Germany, the Czech Republic, Slovakia, Hungary, Slovenia, and Italy. The Austrian economic structure is mainly dominated by small and medium enterprises. The most important industrial branches are food, machine and steel, chemical and vehicle, electric and electronic, and wood and paper industry. In terms of employment by economic sector, the service sector is the largest employer (70.99%), followed by industry (25.36%), and agriculture (3.65%).
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Austria.
Euro (€, EUR)
Languages spoken :
8.96 million (2021 est.)
Minimum wage 2023 :
Regulated by CBAs
Cost of Living index :
$$$$ (24 of 139 nations)
Payroll Frequency :
VAT - standard rate :
GDP - real growth rate :
4.5% (2021 est.)
The approximate time for sharing the contract with an employee in Austria is 4 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Daily working hours must not exceed 12 hours and weekly working hours 60 hours including overtime. Overtime is paid at a rate of 150% of the regular pay.
The Austrian labor law stipulates a limit of one month for probationary periods in employment relationships.
The notice period is determined by the nature of the contract and years of service.
|Years in Service||Notice Period – Employer||Notice Period – Employee|
|During Probation period||No notice||No notice|
|During the first month of temporary employment||1 week||1 week|
|Less than 2 years||6 weeks||1 month (extendable to 6 months by mutual agreement)|
|2 to 5 years||2 months||1 month (extendable to 6 months by mutual agreement)|
|Over 5 years to 15 years||3 months||6 months|
|After 15 years to 25 years||4 months||6 months|
|After 25 years||5 months||6 months|
For every working year (paid leave year), employees are entitled to uninterrupted paid leave lasting:
From the 26th year of service with the same employer onwards, the amount of holidays increases to:
Medical confirmation of the employee’s inability to work is to be submitted at the employer’s request during sick leave. Employees retain the right to remuneration, and the pay is funded by the Health Insurance Fund.
|Period of Continuous Employment||Applicable Sick Leave Pay|
|During the first year of employment||6 weeks full pay + 4 weeks of half-pay|
|25 years or more||12 weeks full pay + 4 weeks of half-pay|
|15 years to less than 25 years||10 weeks full pay + 4 weeks of half-pay|
|1 year to less than 15 years||8 weeks full pay + 4 weeks of half-pay|
Parental leave may be taken for at least two months and at the most until the child’s second birthday if the child lives in the same household. For the parent who takes it first, parental leave usually begins eight weeks or 12 weeks after birth.
Statutory maternity leave (Mutterschaftsurlaub) is 16 paid weeks. The payment is claimed from the health insurance fund.
During the statutory maternity leave (Schutzfrist) – eight weeks before the delivery and usually eight weeks after the delivery – employment is generally prohibited.
Without prejudice to the entitlement to parental leave, the employee is entitled to one month of unpaid paternity leave at his request for the period from the birth of his child to the expiry of the mother’s prohibition of employment after the child’s birth.
If one has to care for a family member living in the same household, one may, under certain conditions, be given one week’s time off work and continue to receive pay. One further week per calendar year is possible if a child who is not yet 12 years old falls ill again and requires care.
Special leave (Sonderurlaub) is between one and three days of paid leave and is granted in the case of very special and specific events such as a marriage or a death in the immediate family.
In Austria, the principle of compulsory insurance applies. Insurance cover is therefore automatically created by law and exists in principle for all employed or self-employed people in Austria as well as for certain relatives.
The statutory health insurance system offers the insured and their co-insured family members comprehensive protection in the case of any illness. The employer rate of contribution towards health insurance is 3.78%.
The statutory work accident insurance scheme offers protection against the occurrence of and the consequences of accidents at work and occupational diseases. The scheme covers employees while at work or traveling to or from work. Cover includes measures to prevent accidents as well as benefits in the event of injury. The employer rate of contribution towards accident insurance is 1.2%
All employees, trainees, and participants of vocational rehabilitation with earnings above the marginal earnings threshold (Geringfügigkeitsgrenze of €386.80 per month) are covered by unemployment insurance.
Payment of benefits in the event of unemployment and verification of entitlement to such benefits is the responsibility of the Labor Market Service (Arbeitsmarktservice). The employer rate of contribution towards unemployment insurance is 3%
The retirement age is 65 for men and 60 for women. The amount of the standard old-age pension is calculated taking into account the claimant’s age, length of insurance and the amount of contributions paid by the claimant.The employer rate of contribution for pension insurance is 12.55%.
If the surviving spouse (or dependent former spouse) of a deceased insured person has reached the age of 35 or if the marriage has produced a child, a widow or widower’s pension (Witwenpension or Witwerpension) may be claimed.
The invalidity benefit falls under the broader Pension Insurance where the employer contributes 12.55%. In order to be entitled to an invalidity pension (Invaliditätsrente), employees should have completed at least 60 months of insurance in the last 120 calendar months.
A qualifying period is not required if the invalidity is the result of an accident at work or an occupational disease. It is also not required in the event that invalidity occurs before a person reaches the age of 27 if a person has been insured for at least six months.
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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