Hire in Austria compliantly. Navigate ~30% employer costs above gross salary, mandatory 13th and 14th month payments taxed at a reduced 6% rate, over 800 collective bargaining agreements that set binding minimum wages by sector and a probation period capped at just one month.
Capital
Vienna
Language
German
Average Salary
EUR 3,900
Payroll Cycle
Monthly
Employer Cost
29-30%
Paid Leave
25 days
Public Holidays
13 days
Tax Rates
0-55%
Hiring guides covering regulations, contributions and costs when you hire in Austria. Updated for 2026.
Austria’s 800+ collective bargaining agreements, mandatory 14 salary payments per year, and employer costs exceeding 29% of gross make it one of the more expensive and complex markets in the EU. An EOR must identify the correct CBA for every employee, apply the right pay grade and ensure the 13th and 14th salaries are processed with the reduced 6% tax treatment.
Our assessment of EOR providers in Austria evaluates CBA classification accuracy, 13th/14th salary handling, social security compliance and municipal tax registration.
When you hire in Austria, the mandatory 13th and 14th salary payments, 25 days annual leave, 13 public holidays and tenure-based sick pay entitlements create one of Europe's most generous employment frameworks.
| Key Employment Facts | |
| Minimum Wage | No statutory rate; CBA-driven (~EUR 1,800-2,000/month in practice) |
| Probation Period | Maximum 1 month |
| Standard Working Hours | 40 hours/week (38.5 under many CBAs); max 12 hours/day including overtime |
| Paid Annual Leave | 25 working days (5 weeks); 30 days (6 weeks) after 25 years |
| Notice Period | 6 weeks to 5 months (employer, by tenure); 1 month (employee) |
| 13th/14th Salary | Mandatory under most CBAs (taxed at 6%) |
| Sick Leave | 6-12 weeks full pay + 4 weeks half pay (by tenure, employer-funded) |
| Maternity Leave | 16 weeks (8 pre + 8 post birth) at 100% via health insurance |
| Paternity Leave (Papamonat) | 1 month (unpaid, job-protected) |
Good to Know: Austria’s 13th and 14th salary payments are one of the most tax-efficient features of the system. These extra payments are taxed at just 6% (with the first EUR 620 tax-free), compared to the normal progressive rates of 20-55%. Social security contributions on these payments are also reduced (employer 20.48%, employee 17.07%, versus the regular 20.98%/18.07%). The maximum assessment base for special payments is EUR 13,860/year. The CBA determines the exact timing and calculation of these payments, but June and November are standard. Sick leave entitlement increases with tenure: 6 weeks at full pay in the first year, rising to 12 weeks after 26 years of service, always followed by 4 weeks at half pay. Beyond that, health insurance takes over. Parental leave (Elternkarenz) is available until the child’s second birthday, and childcare allowance (Kinderbetreuungsgeld) provides income replacement through various models.
When you hire in Austria, the combination of ~21% social security, 3.7% family fund, 3% municipal tax and 1.53% severance fund pushes total employer cost to approximately 29-30% above gross. Factor in 14 salary payments and Austria is one of Europe's more expensive employment markets.
| Employer Contributions (2026) | |
| Contribution | Employer Rate |
| Pension Insurance | 12.55% |
| Health Insurance | 3.78% |
| Unemployment Insurance | 2.95% |
| Accident Insurance | 1.1% |
| Other (housing subsidy, IESG supplement) | ~0.6% |
| Total Social Security (employer) | ~20.98% |
| Family Burdens Equalization Fund (FLAF) | 3.7% |
| Municipal Payroll Tax (Kommunalsteuer) | 3% |
| Severance Fund (MVK/BV-Kasse) | 1.53% |
| Insolvency Fund | 0.1% |
| Chamber of Commerce levy | 0.31-0.40% |
| Total Employer Cost | ~29-30% |
| Employee Taxes (2026) | |
| Tax / Contribution | Employee Rate |
| Pension Insurance | 10.25% |
| Health Insurance | 3.87% |
| Unemployment Insurance | ~2.95% (varies by income) |
| Other (housing subsidy, Chamber of Labour) | ~1% |
| Total Social Security (employee) | ~18.07% |
| Income Tax (progressive) | 0-55% (6 brackets) |
| Tax-free threshold (2026) | EUR 13,541/year |
| SS contribution ceiling | EUR 6,930/month |
Good to Know: For an employee earning EUR 3,500/month gross in Austria (paid 14 times = EUR 49,000/year), the employer pays approximately EUR 734/month in social security (20.98%), EUR 130 in FLAF (3.7%), EUR 105 in municipal tax (3%), EUR 54 in severance fund (1.53%) and EUR 4 in insolvency fund = roughly EUR 1,027/month or 29.3% above gross. But this applies to 14 payments, not 12. The two special payments (13th/14th) have slightly reduced employer rates (20.48%), which partially offsets the extra cost. Annual total employer cost: approximately EUR 63,400 for a EUR 49,000 gross salary, or about 1.29x gross. The silver lining: the 6% flat tax on special payments means the 13th and 14th salaries are significantly more valuable to employees than equivalent regular pay, making Austria’s compensation structure uniquely tax-efficient for both sides.
Austria has 13 public holidays that apply nationwide across all 9 federal states. Unlike Germany, there are no regional variations. Holidays falling on weekends are generally lost (no substitute day).
|
Date |
Holiday |
|
January 1 |
New Year’s Day (Neujahr) |
|
January 6 |
Epiphany (Heilige Drei Konige) |
|
April 6 |
Easter Monday (Ostermontag) |
|
May 1 |
Labour Day (Staatsfeiertag) |
|
May 14 |
Ascension Day (Christi Himmelfahrt) |
|
May 25 |
Whit Monday (Pfingstmontag) |
|
June 4 |
Corpus Christi (Fronleichnam) |
|
August 15 |
Assumption of Mary (Maria Himmelfahrt) |
|
October 26 |
National Day (Nationalfeiertag) |
|
November 1 |
All Saints’ Day (Allerheiligen) |
|
December 8 |
Immaculate Conception (Maria Empfangnis) |
|
December 25 |
Christmas Day (Weihnachten) |
|
December 26 |
St Stephen’s Day (Stefanitag) |
Good to Know: Austrian public holidays falling on weekends are generally lost, with no automatic substitute day off (unlike many other EU countries). In 2026, Assumption of Mary (August 15) falls on Saturday, All Saints’ Day (November 1) on Sunday, and St Stephen’s Day (December 26) on Saturday, meaning employees lose 3 holidays. Many CBAs define December 24 and December 31 as half-holidays or full holidays, but these are not statutory public holidays. December 8 (Immaculate Conception) has unique legal protection: employees cannot be required to work even in essential services, and those who voluntarily work receive premium pay. Overtime on public holidays is paid at 200% of the normal rate (100% premium).
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