Payroll and Benefits Guide Austria

Last updated: May 02, 2023

Euro (EUR)
Employer Taxes
29.75% – 29.83%
Payroll Frequency
Employee Costs
Date Format
Fiscal Year
1 January- 31 December



Employer Payroll Contributions


Health Insurance (applied on salary up to 5,850 EUR per month)


Accident Insurance (applied on salary up to 5,850 EUR per month)


Old-Age Pension Insurance (applied on salary up to 5,850 EUR per month)


Unemployment Insurance (applied on salary up to 5,850 EUR per month)


Insolvency Guarantee Funds Contribution (applied on salary up to 5,850 EUR per month)


Family Burdens Equalization Levy (applied on salary up to 5,850 EUR per month)


Municipal tax

0.34% to 0.42% (Varies by province)

Chamber of Commerce


Austrian law contribution to the mandatory employee severance fund

29.75% – 29.83%

Total Employment Cost


Employee Payroll Contributions


Health Insurance


Old-Age Pension Insurance


Unemployment Insurance


Total Employee Cost

Employee Income Tax


Up to 11,693.00 EUR


11,693.00 EUR – 19,134.00 EUR


19,134.00 EUR – 32,075.00 EUR


32,076.00 EUR – 62,080.00 EUR


62,081.00 EUR – 93,120.00 EUR


93,121.00 EUR-1,000,000.00 EUR


1,000,001.00 EUR and over

Employer taxes


Employee taxes


Minimum Wage


Austria does not have a statutory minimum wage. However, the Austrian law against wage and social dumping (Lohnund Sozialdumping-Bekämpfungsgesetz) regulates that similar wage conditions must apply to those working in Austria in the same branch. This is currently 1,700 EUR per month for a full-time employee.




Payroll Cycle

The payroll cycle is monthly and the employer must pay wages by the last working day of each month unless stipulated otherwise in a collective bargaining agreement or employment contract.

13th Salary

It is customary to pay 13th and 14th salaries in Austria. The annual salary is paid in 14 equal payments. The 13th and 14th payments are paid out in June and November. See EoR page for EoR regulations.

Authority Payments

Authority Payment  Dates Methods

Graz taxes

Monthly, by the 30th

eCheck (Local), EUR

Regional Austria taxes

Monthly, by the 30th

eCheck (Local), EUR

Regional Austria taxes

Monthly, by the 30th

eCheck (Local), EUR

Vienna taxes

Monthly, by the 30th

eCheck (Local), EUR

Payroll Tax

Monthly, by the 30th

eCheck (Local), EUR

QLD Office of State Revenue
Payroll tax
7th of the following month
14th of January of bi-annual
21st of July if annual
TAS Office of State Revenue
Payroll tax
7th of the following month.
21st of July if annual
Revenue SA
Payroll tax
7th of the following month.
21st of July if annual
NT Office of State Revenue
Payroll tax
7th of the following month.
21st of July if annual

Working Hours


Working hours are regulated by the Austrian Working Hours Act, the Working Hours Rest Act, and collective bargaining agreements. The standard workweek is 8 hours per day and 40 hours per week, with a maximum of 12 hours per day (including overtime).  In addition, the average weekly working hours must not exceed 48 hours for  17 consecutive weeks.


Work in excess of 40 hours per week is paid at the rate of 150% of the regular pay. Overtime can also be given as time off in lieu at a ratio of 1 to 1.5 days. However, collective bargaining agreements often present higher figures for overtime payment or time off in lieu.

Working Week



Paid Time Off

The statutory holiday entitlement in Austria is five weeks (25 working days) per year for an employee who has completed six months of employment. Employees with less than six months of service accrue two working days per month. Once an employee completes 25 years or longer for the same employer, the entitlement increases to six weeks (30 working days).

Up to 12 years of prior employment in other jobs and periods of education can also be credited to an employee, whereby the required number of years of service with the same employer is reduced to 13 years.

There can also be deviations from this rule in different collective agreements. Employees accrue leave based on the service commencement date. Unused leave can be carried over to the following year.

Vacation Days
Public Holidays

Public Holidays

2023 offers ten-weekday public holidays, while two of the three ‘de facto’ public holidays (which employers are not obliged to give as days off, but many do) also fall on weekends, so most employees will get 11 days off work in addition to their annual leave.

Sick Days

Sick leave entitlement varies based on the length of employment:

  • One year of employment: Six weeks at full pay and four weeks at half pay covered by the employer
  • Two-15 years of employment: Eight weeks at full pay and four weeks at half pay covered by the employer
  • 16-25 years of employment: 10 weeks and four weeks at half pay covered by the employer
  • 26+ years of employment: 12 weeks and four weeks at half pay covered by the employer

Any sick leave beyond the above entitlement is covered by social security.
A medical certificate must be provided.

Maternity Leave

Maternity leave in Austria is 16 weeks. Expectant mothers are prohibited from working eight weeks before the child’s expected due date and for eight weeks (12 weeks in the case of a Caesarean section or high-risk delivery) after the child’s birth.
Maternity leave is paid by a weekly allowance through the Social Security provider.

This allowance is based on the average earnings of the last three months before the maternity leave began. After 16 weeks, the mother is entitled to unpaid maternity leave until the child is two-years-old (during this period, the mother receives childcare pay under the Child Care Payment Act).



Paternity Leave

Fathers are entitled to one month of unpaid paternity leave which may begin any time after the child’s birth up until the child turns two. This month of leave is often referred to as ‘Daddy Month.’ The new father must notify his employer three months before the estimated date of birth to be granted this leave.

Parental Leave

In Austria, parental leave starts when maternity leave finishes.
Parents can take parental leave until the child reaches the age of 24 months and are entitled to payment under the Child Care Payment Act from social security during their parental leave.
Fathers can share maternity leave with mothers. They can switch ‘leave periods’ between the two parents twice throughout the parental leave period, although these must be at least two months apart. Mother and father are prohibited from taking parental leave at the same time.

Other Leave

There are various additional leave periods to which employees are entitled:

  • Two weeks of paid leave to care for a sick child under the age of 12
  • An employee can also request up to six months of unpaid leave to care for an immediate family member
  • One to three days paid leave for marriage or bereavement (the exact days leave will be outlined in the employee’s collective bargaining agreement or employment contract)


Termination Process

Upon termination of employment and depending on the reason for termination, the employee may be entitled to severance pay. Austria has two schemes linked to the employment contract start date.

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

The notice period can be increased by up to six months subject to a contractual agreement or collective bargaining agreement.

Severance Pay

Two systems of statutory severance pay exist in Austria. One applies to employment contracts commenced before January 1, 2003 (old severance pay). The other system is applicable for employees with a starting date after January 1, 2003 (new severance pay).

The difference between the two systems is that within the old regime of statutory severance pay, the employee has a direct claim against the employer unless an employee terminates the employment relationship or is dismissed for cause.

Within the new severance pay, every month during employment, the employer is obliged to pay 1.53% of the gross salary to an external company pension fund (Betriebliche Vorsorgekasse). The employee then has a severance right against that fund, but there is no additional severance payable by the employer.

Probation Period

The standard probation period in Austria must not exceed one month, except for apprenticeships whose probation period is typically three months.

Common Benefits


Meal Vouchers
Gym/Wellness allowance
Transportation allowance
Private Health Insurance/allowance
Private pension contribution
Additional Leave (usually 5 extras days)
Home office allowance



Non-EU/EEA/Swiss citizens must apply for a Schengen visa to enter Austria. In contrast, citizens from the European Union (EU), European Economic Area (EEA), or Switzerland can work in Austria without a visa for up to 90 days as Austria is part of the Schengen Area of Europe.
Longer-term visas, work permits, and residence permits are approved based on a point criteria system.
In summary, the type of work visa one needs depends on the length of stay and the applicant’s qualifications.
For example, as a highly qualified worker from a third country:

  1. One may either enter Austria under a Job Seeker Visa to look for employment.
    1. If one receives an employment offer during the visa’s validity period, one may apply for a Red-White-Red card at the appropriate residence authority in Austria.
  2. If one has received an employment offer, one may apply for a Red-White-Red card with the appropriate Austrian representation in one’s home country or country of residence.

An applicant must reach a minimum of 70 points according to the list of criteria as a prerequisite in both cases.
Alternatively, as a third-country citizen, one may be granted an EU Blue Card (for which there is no link to the points system), if one:

  • Has completed a course of study at a university or other tertiary educational institution with a minimum duration of three years
  • Has received a binding job offer for at least one year in Austria, and the employment corresponds to the applicant’s education
  • Will earn a gross annual income of at least one and a half times the average yearly gross income of full-time employees
  • Is qualified for the position and the labor market test (Arbeitsmarktprüfung) shows no equally qualified worker registered as a job seeker with the Public Employment Service (AMS) available for the job

Individuals who are not EEA citizens or Swiss nationals may apply for a Red-White-Red Card (combined residence and work permit) as skilled workers in a shortage occupation, valid for 24 months if they can:

  • Provide proof of completed training in a shortage occupation under the regulation
  • Show evidence of a binding job offer in Austria and the prospective employer is willing to pay the minimum stipulated by law, regulation, or collective agreement.
  • Reach a minimum of 55 points

Once the initial term with the Red-White-Red or EU Blue Card has been completed (or is due to be completed), one may apply for a Red-White-Red Card Plus. The Red-White-Red Card entitles you as a non-EEA citizen or Swiss national to a fixed-term settlement and unlimited labor market access (as a self-employed or an employed person, not limited to a specific employer).



The standard VAT rate in Austria is 20%.

A reduced rate of 13% and 10% is applied to some products, reduced rates are applied to services. Products with a reduced rate include for example, solid mineral fuel, heating oil, and gas oil.

Stay up to date on payroll & employment law changes

Version History

February 9, 2022
Income tax brackets updated
Similar wage conditions updated from 1,500 EUR per month to 1,700 per month
January 1, 2021
Individual income tax bracket changed.
September 22, 2020
Employee payroll contributions has changed.

Questions & Answers

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2 years ago

Is there a legal limit to how long a non-compete clause in an employee’s contract can run?

Alex Margolin
Alex Margolin
2 years ago
Reply to  Paul

Hi Paul, a non-compete clause can run for a maximum of one year after the termination of an employee’s contract.

2 years ago

What happens if you don’t report sick leave?

Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  Alexandra

Hi, In Austria, the employee has one week to report that they are sick by providing a medical certificate. If they fail to do so, sick pay only begins from the day that the sickness is reported.

2 years ago

will be a problem if i take unpaid leave for 2 months during RWR Card and also don’t pay socail insurance ?

Alex Margolin
Alex Margolin
2 years ago
Reply to  Ahmed

it will depend on the specific type of RWR card you hold. Some RWR cards are tied to specific employers, so if they leave that employer they will need to apply for a new card. Best to check the details of the specific card.

Francesca Min
Francesca Min
1 year ago

I need to do a company salary review – applying a percentage increase to the annual gross salary. My company wants to consider as annual salary the monthly salary times 12 – saying 13 and 14 months are allowance. Can you confirm best practices ?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Francesca Min

This depends on the collective labor agreement in place when it comes to the best practice. 13th salary is in December (called Christmas allowance) and 14th salary in May (it is called holiday allowance and should be paid by June 30).

1 year ago

Hi, if hired through Austrian contract, from EU country and it’s the first time, how can i calculate net salary, fringe company car and and other things may have an impact?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Fabio

Here is a tool you can use to calculate the gross net of any taxable income –

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Payroll and Benefits Guide
in Austria

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

Austria 2023
Day Date Holiday Notes
Sunday Jan-1 New Year’s Day
Friday Jan-6 Epiphany
Monday Apr-10 Easter Monday
Monday May-1 Labour Day
Thursday May-18 Ascension Day
Monday May-29 Whit Monday
Thursday Jun-8 Corpus Christi
Tuesday Aug-15 Assumption of Virgin Mary
Thursday Oct-26 National Day
Wednesday Nov-1 All Saints’ Day
Friday Dec-8 Immaculate Conception
Monday Dec-25 Christmas Day
Tuesday Dec-26 St. Stephen’s Day