Basic Facts

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.

Capital :
Currency :
Euro (€, EUR)
Languages spoken :
Population :
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.)

Statutory Holidays

There are 13 annual Austrian bank holidays observed by the whole country, as well as, some state holidays that are only acknowledged in certain states.

The holidays mentioned below are valid for the year 2023.

Holiday Name
Extra Information
January 1
New Year (Neujahr)
January 6
Epiphany (Heilige Drei Könige)
April 10
Easter Monday (Ostermontag)
May 1
Labor Day (Staatsfeiertag)
May 18
Ascension Day (Christi Himmelfahrt)
May 29
Whit Monday (Pfingstmontag)
June 8
Corpus Christi (Fronleichnam)
August 15
Assumption of the Virgin Mary (Mariä Himmelfahrt)
October 26
National Day (Nationalfeiertag)
November 1
All Saints' Day (Allerheiligen)
December 8
Immaculate Conception (Mariä Empfängnis)
December 25
Christmas Day (Weihnachten)
December 26
St. Stephen’s Day (Ste­phanstag)

Contract Sharing Time

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.

What You Need To Know

  • In Austria, the conclusion of collective agreements is essentially confined to the private sector. These agreements are negotiated, almost without exception, at the multi-employer sectoral level.
  • There is no mandated national minimum wage.
  • The statutory termination date is generally the end of the calendar quarter (end of March, June, September, and December).

Labor Conditions

Working Hours
  • The standard working hours are eight hours per day, 40 hours per week.
  • For fully continuous shift work, including on weekends, employees working in alternating shifts are to be given appropriate short breaks instead of rest breaks (totaling 30 minutes). 
  • Night workers are entitled to an additional break of 10 minutes per night, which counts as a part of working hours.



Daily working hours must not exceed 12 hours and weekly working hours of 60 hours including overtime. Overtime is paid at a rate of 150% of the regular pay.


Probation Period

The Austrian labor law stipulates a limit of one month for probationary periods in employment relationships.

Termination Notice Period

The notice period is determined by the nature of the contract and years of service.


Years in ServiceNotice Period – EmployerNotice Period – Employee
During Probation periodNo noticeNo notice
During the first month of temporary employment1 week1 week
Less than 2 years6 weeks 1 month (extendable to 6 months by mutual agreement)
2 to 5 years2 months1 month (extendable to 6 months by mutual agreement)
Over 5 years to 15 years3 months6 months 
After 15 years to 25 years4 months6 months
After 25 years5 months6 months


Leave / Time Off

Annual Leave

For every working year (paid leave year), employees are entitled to uninterrupted paid leave lasting:

  • 30 working days in the case of a six-day working week
  • 25 working days in the case of a five-day working week.

From the 26th year of service with the same employer onwards, the number of holidays increases to:

  • 36 working days in the case of a six-day working week
  • 30 working days in the case of a five-day working week.

Sick Leave

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. 


Overview of sick leave pay
Period of Continuous EmploymentApplicable Sick Leave Pay
During the first year of employment6 weeks full pay + 4 weeks of half-pay
25 years or more12 weeks full pay + 4 weeks of half-pay
15 years to less than 25 years10 weeks full pay + 4 weeks of half-pay
1 year to less than 15 years8 weeks full pay + 4 weeks of half-pay

Parental Leave

Parental leave may be taken for at least two months and at 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 to 12 weeks after birth. 


Maternity Leave

Statutory maternity leave (Mutterschaftsurlaub) is 16 paid weeks. The payment is claimed by 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.

  • In case of premature, multiple, or cesarean births, the period will be extended to at least 12 weeks.
  • If the statutory maternity leave (Schutzfrist) is reduced before delivery, the period extends according to that reduction after delivery (16 weeks at the longest).


Paternity Leave

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.

Other Types of Paid Leave

Care for a Relative at Home

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 Paid Leave

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.

Statutory Benefits

The Social Security contribution covers contributions to health insurance, pension insurance, unemployment, and accident insurance.

The following employer contribution rates apply: 


Employee Contribution

Employer Contribution

Health Insurance



Accident Insurance


Pension Insurance



*Unemployment Insurance



Insolvency payment protection


Company provision


Chamber of Labor contribution


Housing Subsidies



Municipal Tax





Health Insurance

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 case of any illness. The employer rate of contribution towards health insurance is 3.78%.

Other Insurances

Accident Insurance

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%

 Unemployment Insurance

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%

Public Pension

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%. 

Other Statutory Benefits

Survivors’ Pension

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.

Invalidity benefits

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 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.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.