Austria is a landlocked Alpine country in central Europe made up of 9 federated states. Austria has a high GDP (among the top 20 largest economies in the world), and consistently ranks high on quality of life indicators.Since Austria became a member state of the European Union in 1995 it has gained closer ties to other EU countries.
While there is no statutory minimum wage in Austria, national collective bargaining agreements have set minimum wages by job classification for each industry. This provides for what is an effective minimum wage of €1,700 per month based on a 40-hour work week.
Austrians typically work an 8-hour day and a 40-hour week. Any work that exceeds 40 hours per week is compensated at 150% of the regular salary.
Pregnant employees in Austria are entitled to 8 weeks of pregnancy leave before the baby’s due date and at least 8 weeks of maternity leave after childbirth. The first 16 weeks of leave are paid, and after this period the mother can take 2 years of extended unpaid maternity leave and receive childcare under the Child Care Payment Act.
Fathers are entitled to 1 month of paid paternity leave, but are not entitled to a 13th or 14th salary during this leave period. During this time, the employee is paid a family time bonus that grants them €22.60 per day from Social Insurance.
The amount of sick leave an employee can take depends on the duration of their employment with the company. A medical note or certificate may be required.
Australia has 13 public holidays. All full-time and part-time workers who have been at a company for 6 months are entitled to 25 days paid time off per year, which is accrued at 2.08 days per month. Once an employee completes 25 years or more at the same employer, their paid time off increases to 30 days per year.
All employees in Austria hired after January 1, 2003 are entitled to severance, unless in cases of resignation or termination due to misconduct. This payment comes from a fund to which employers contribute 1.53% of employees’ salary every month.
The statutory notice period for an employer depends on the duration of employment, ranging from six weeks to five months.
For employment that began after December 31, 2002, the new severance pay scheme will apply upon termination. Employers now pay monthly contributions of 1.53% of the pre-tax salary to a severance fund provider who manages and invests the funds. All employees are entitled to this severance pay scheme regardless of how the employment relationship ended, unless in cases of resignation or termination due to misconduct. After termination, the employee may request disbursement of the fund amount or leave it in for further investment.
In Austria, it’s customary to pay out 13th and 14th salaries in June and November. Employment contracts must be in German or English and can be bilingual.
★ 3.78% - Health Insurance
★ 1.2% - Accident Insurance
★ 12.55% - Pension
★ 3% - Unemployment Insurance
★ 0.55% - Insolvency Guarantee Fund
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.
