* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Euro (€)



Employment Cost

0% - 55%

Annual Leave

25 days

In-demand Specialties*
Software Development And It, Automotive Engineering And Machinery, Medical And Healthcare Services

The Ultimate Guide to Hiring Employees in Austria

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Austria

Employing in Austria requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Austria with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Austria quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Austria has a relatively low unemployment rate of approximately 5.5%, fostering a stable job market. This can be advantageous for companies seeking a skilled workforce and promoting a favorable business environment.

German is the official language in Austria, and proficiency in German is often preferred in the workplace. While English is widely spoken, especially in business settings, having knowledge of German can enhance communication and integration.

Austria's dedication to work-life balance and employee well-being is reflected in its robust social benefits system. This includes healthcare, pension plans, and other compulsory benefits, ensuring a high quality of life for employees.

Austria's central European location facilitates business interactions across various time zones. The country's work hours align with those of many European countries, making it convenient for international collaboration and communication.


Fundamental Aspects of Employment in Austria

Hiring in Austria involves adherence to the country's labor regulations, emphasizing transparency and detailed employment documentation.

  • The date of employment commencement
  • The employee's ordinary working days and hours
  • The employee's wage rate and the method of wage calculation
  • The company's disciplinary codes

Probationary Period in Austria

The standard probation period in Austria must not exceed one month

Working hours in Austria

The Austrian Working Hours Act, the Working Hours Rest Act, and collective bargaining agreements govern working hours in Austria. The typical workweek comprises 8 hours per day and 40 hours per week, with a maximum limit of 12 hours per day, inclusive of overtime.

Overtime in Austria

Overtime exceeding 40 hours per week is compensated at 150% of the regular pay. Alternatively, employees may receive time off in lieu at a ratio of 1.5 days for each overtime day worked. It's important to note that collective bargaining agreements may stipulate higher rates for overtime pay or time off in lieu.

Navigating Key Aspects of Payroll in Austria

Austria has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in Austria

1 January- 31 December is the 12-month accounting period that businesses in Austria use for financial and tax reporting purposes.

Payroll Cycle in Austria

The payroll cycle in Austria is usually monthly, with employees being paid by the last working day of each month.
10.625 EUR p/h

Minimum Wage in Austria

The minimum wage for employees in Austria is typically 10.625 EUR per hour, amounting to ~1,700 EUR per month for a typical 40 hour work week.

Minimum wages and salaries in Austria

The minimum wage in Austria is 10.625 EUR an hour

Bonus Payments in Austria

In Austria, the practice is to provide 13th and 14th salaries, distributed evenly throughout the year. The additional payments are typically made in June and November.

Comprehensive Overview of Employment Taxes in Austria

Understanding the tax obligations for both employers and employees is crucial when operating in Austria's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Austria.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 0% - 55% on top of the employee salary in Austria.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Austria, the typical estimation for employee payroll contributions cost is around 17.12%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Income tax in Austria is 'Pay As You Earn'. The individual income tax ranges from 0% to 55%. Income tax is calculated according to progressive rates.

Tax Rate Income Bracket

Pension in Austria

Employees and employers contribute to the social insurance system, which includes pension contributions. This ensures that individuals receive pension benefits when they retire.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Austria tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Austria

When it comes to terminating employment in Austria, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Indefinite contracts in Austria can be terminated without cause, provided that the stipulated notice periods are observed. However, fixed-term contracts are subject to additional restrictions and conditions.

  • Voluntarily by the employee
  • By mutual agreement
  • Incapacity to carry out job responsibilities
  • Operates an independent commercial business or carries out commercial transactions within the employer’s business on their own account or that of a third party

Notice Period

The notice period varies based on the length of employment:

  • Up to 2 years of employment: 6 weeks’ notice
  • 2-5 years of employment: 2 months’ notice
  • 5-15 years of employment: 3 months’ notice
  • 15-25 years of employment: 4 months’ notice
  • 25+ years of employment: 5 months’ notice

Severance Pay

The severance pay system in Austria mandates employers to contribute 1.53% of the monthly salary to an employee severance fund. Upon the conclusion of the employment term, the employee has the option to either withdraw the accumulated amount or retain it in the fund for potential investment.

Annual Leave Entitlements and Company Policies in Austria

The annual leave entitlement in Austria is 25 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Austria

Austria has 13 mandatory national public holidays in a year.

Holiday Date

Paid Time Off in Austria

Maternity Leave in Austria

Paternity Leave in Austria

Sick Leave in Austria

Childcare Leave

Leave To Care For Family Member

Parental Leave In Austria

Austria's Benefits Built Into Playroll

Competitive benefits package in Austria

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Austria's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Austria

Make your benefits package in Austria a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Workman's Compensation
  • Background Checks
  • Employee Wellness
  • IT Equipment Sourcing

Statutory benefits for employment in Austria

Playroll allows you to provide localized benefits for employees in Austria within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Austria create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Austria

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Austria.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!