Payroll taxes in Austria that are of key importance to employers include income tax withholding, social security contributions, and local levies. Learn more about the processes for setting up payroll, calculating taxes, submitting payments compliantly, and adhering to due dates in Austria.
Capital City
Vienna
Currency
Euro
(
€
)
Timezone
CEST
(
GMT +1
)
Payroll
monthly
Employment Cost
29.75% – 29.83%
Auctioned through sector-specific collective bargaining agreements, Austria does not have a nationwide statutory minimum wage. These agreements set minimum wages for various industries and professional groups, which can vary significantly. The starting minimum wage in many industries is approximately EUR 1,700 per month.
Since Austria’s minimum wage is determined through sector-specific collective agreements, no national minimum wage exists, and there are no specific regional minimum wages. However, wages can vary depending on the sector and adjustments made through regional collective bargaining agreements. For example, the minimum wage in Vienna may be higher than other regions due to the capital’s higher cost of living. Employers should consult relevant collective agreements to determine the appropriate minimum wage based on industry and region.
Average Minimum Wage: The average minimum wage across various sectors in Austria is approximately EUR 1,700 per month.
Reasonable Minimum Wage: This refers to wages considered fair within the industry. For sectors such as technology and finance, reasonable minimum wages tend to range from EUR 1,700 to EUR 2,000 per month due to demand for specialized skills.
Typical Minimum Wage: Varies by industry and region, but generally falls between EUR 1,400 and EUR 1,700 per month in many sectors.
Minimum wage laws in Austria apply to various worker types, with slight variations depending on employment status.
Full-time employees in Austria are covered by collective bargaining agreements, with gross monthly wages typically ranging from EUR 1,700 to EUR 2,200. Wages in high-demand industries, such as technology and healthcare, tend to be higher.
Part-time employees are entitled to the same minimum wage rates as full-time employees on a pro-rata basis. For example, a part-time worker who works half the hours of a full-time employee should receive half of the full-time wage.
Interns and trainees are generally entitled to the same minimum wage as employees if their internships are considered employment under Austrian labor law. However, unpaid internships still exist in some fields, such as media and the arts, although the trend is decreasing.
Expatriates working in Austria are subject to the same minimum wage laws as Austrian nationals. They must adhere to sector-specific collective agreements that determine the minimum wage for their roles. Additionally, expats must ensure compliance with Austrian work permits and visa regulations when moving to Austria for employment.
IT/Software Development: Junior developers typically earn around EUR 3,000 per month, while senior developers can earn up to EUR 5,500 per month.
Medical Professionals (Doctors, Surgeons): Salaries range from EUR 4,500 to EUR 8,000 per month, depending on specialization and experience.
Legal Professionals (Lawyers, Judges): Earnings range between EUR 3,500 and EUR 6,000 per month, with higher salaries possible for senior positions or those specializing in lucrative sectors.
The minimum wage in Austria varies across industries. Sectors such as technology, pharmaceuticals, and finance tend to offer higher wages due to the demand for skilled workers. In contrast, retail and hospitality industries may offer lower minimum wages, particularly for entry-level positions.
Economic conditions, including inflation and unemployment levels, affect wage levels. Austria’s low unemployment rate and stable economy have led to gradual increases in minimum wages, often influenced by inflation rates and cost-of-living adjustments.
The Austrian government does not set a national statutory minimum wage but contributes indirectly through labor market policies that support collective bargaining. These policies help maintain fair wage standards across different sectors and ensure that wage increases are aligned with economic conditions.
Minimum wage earners in Austria are subject to the country's progressive income tax system. Employees earning below EUR 11,000 annually are exempt from income tax, but those earning above this threshold will be taxed according to the relevant income tax brackets. Employers are also responsible for social security contributions on behalf of employees.
Austria's approach to minimum wage has been shaped by sector-specific collective agreements rather than a national statutory minimum. Wage increases are tied to inflation, cost-of-living adjustments, and economic conditions. In 2025, wage increases are expected to reflect inflation rates and demand for skilled workers.
Expanding your business internationally is exciting, but it comes with the challenge of understanding complex legal and payroll requirements. One of the hurdles is ensuring you comply with local minimum wage laws. Playroll makes this process easier by acting as your trusted Employer of Record:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
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FAQS
The daily minimum wage in Austria ranges from EUR 50 to EUR 60, and hourly rates are typically between EUR 9 and EUR 12, depending on the sector and region.
Yes, certain sectors like agriculture and domestic work may have exceptions under collective agreements. Unpaid internships are also allowed in specific fields, though these are becoming less common.
The minimum wage is reviewed annually through negotiations between employer associations and trade unions. Adjustments may be made based on inflation and economic conditions.
The minimum wage in Austria is the legal floor for wages, while the living wage is higher and reflects the cost of living in different regions. For example, the estimated living wage in Vienna is around EUR 2,300 per month.
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