Hire in Austria

Austria

PEO &

Employer of Record

Hire employees remotely in Austria without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

German

Salary Currency

Euro (EUR, €)

Capital city

Vienna

Time zone

UTC +1

EOR in Austria

Hire Employees in Austria

NNRoad provides payroll & employer of record (EOR) services in Austria to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record (EOR) in Austria

Employer of Record (EOR) services are for companies who do not have a legal entity in Austria, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Austria.

2. Employee Onboarding

We sign a local labor contract with your employees based in Austria.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Austria.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll in Austria

Payroll services are for companies who have a legal entity in Austria, and want to outsource their salary disbursement, mandatory benefits, income tax filing and mandatory reports.

Employer of Record Status in Austria

Using an Employer of Record (EOR) to hire employees in Austria is a legally accepted method that helps companies navigate local employment laws without the need to establish a local entity. An EOR acts as the legal employer, managing payroll, taxes, benefits, and compliance with Austrian labor laws such as the Employees Act, the Working Time Act, and various collective bargaining agreements.

Hiring an Expat with an EOR in Austria

For hiring foreign expats, an EOR handles the complexities of obtaining work visas and permits, ensuring compliance with immigration laws. This includes managing the application process for Red-White-Red Cards and other necessary documentation, allowing companies to onboard international talent efficiently and legally. By utilizing an EOR, businesses can ensure that they adhere to local employment and immigration regulations, reducing administrative burdens and mitigating risks associated with non-compliance.

Employee Income Taxes:

Individual income tax rates in Austria are based on progressive tax brackets.

In Austria, the income tax system operates on a pay-as-you-earn basis, with the employer responsible for deducting taxes directly from the employee’s salary. The income tax rates are progressive, depending on the level of income, ranging from 0% for annual incomes up to 12,465 EUR to 55% for incomes above 1,000,000 EUR​ (Worldwide Tax Summaries Online)​.

Tax Brackets:

Sample Calculation

0%: €0 – €12,465
20%: €12,465 to €20,397
30%: €20,397 to €34,192
40%: €34,192 to €66,178
48%: €66,178 to €99,266
50%: €99,266 to €1,000,000
55%: > €1,000,000
ax on a €100,000 annual income in Austria:

0% Bracket: 0 * 0.00 = €0
20% Bracket: (€20,397 – €12,465) * 0.20 = €1,586.40
30% Bracket: (€34,192 – €20,397) * 0.30 = €4,138.50
40% Bracket: (€66,178 – €34,192) * 0.40 = €12,794.40
48% Bracket: (€99,266 – €66,178) * 0.48 = €15,868.64

Adding up the taxes from all brackets:
€0 + €1,586.40 + €4,138.50 + €12,794.40 + €15,868.64 = €34,388.94

The income tax due on a salary of €100,000 in Austria is approximately €34,388.94.

Employer Contribution

Employers in Austria contribute to social security, which includes health insurance (3.78%), pension insurance (12.55%), accident insurance (1.20%), unemployment insurance (3.00%), and other contributions (0.70%), totaling 21.23% of the salary​.

Employee Contribution

Employees also contribute to social security, with their contributions totaling 18.12%. This includes contributions to health insurance (3.87%), pension insurance (10.25%), and unemployment insurance (3.00%), among others.

Social Security

The total social security contributions in Austria, combining both employer and employee contributions, amount to 39.35% of the salary, covering health, pension, accident, and unemployment insurance​.

Contributions to the pension fund (10.25%) and health insurance (3.87%) are part of the social security contributions made by employees​.

Working Hours Per Week

The standard working week in Austria is 40 hours, typically from Monday to Friday, with standard office hours from 08:00 to 17:00

Overtime

Overtime must be compensated either by granting additional time off or leave, or by providing payment for the extra hours worked at a rate 50% higher than the regular wage. If overtime occurs during night shifts or on weekends, the compensation rate increases to 100%. However, certain Collective Bargaining Agreements (CBAs) may stipulate even higher supplements for overtime compensation.

In Austria, employment can be terminated immediately by the employer for good reasons, such as gross misconduct. The process can be carried out verbally or in writing​.

Severance

For employment relationships extending beyond a month, employers are required to contribute 1.53% of the monthly salary of their employees to the employee provision fund.

Notice Period

In Austria, when an employer terminates an employee’s services, advance notice is required. The minimum notice period for salaried employees is determined based on their years of service with the company:

Less than 2 years: 6 weeks
3 to 5 years: 60 days
6 to 15 years: 90 days
16 to 25 years: 120 days
26 or more years: 150 days

Employment Contract

Labor contracts in Austria should include terms regarding job description, salary, benefits, working hours, probation period, and termination clauses.

Probation Period

In Austria, the probation period typically lasts one month and is commonly established within the employment contract. During this probationary phase, both the employer and the employee have the right to terminate the employment agreement without needing to provide a reason.

Annual Leave

Under Austrian regulations, employees are granted a minimum of five weeks, equivalent to 25 days, of annual leave for those who have completed six consecutive months of service within an organization, based on a five-day workweek. This entitlement increases to six weeks, or 30 working days, annually following 26 years of continuous employment with the same employer.

Sick Leave

Employees have the right to continued payment during periods they are unable to work due to illness or work-related injuries. The duration of this paid leave varies based on the employee’s length of service and the specific terms of their employment. To avail of this benefit, a medical certificate from a healthcare professional is often required as evidence of the employee’s incapacity to work. This system is designed to provide financial security to employees during times when their physical condition prevents them from performing their job duties.

Maternity Leave

Expectant employees are entitled to a maternity leave of sixteen weeks, divided equally before and after the birth. Additionally, both parents have the right to parental leave until the child reaches the age of two. The minimum duration for such leave is two months. It’s important to note that during parental leave, employees do not receive their regular salaries.

Paternity Leave

Fathers are entitled to one month of unpaid paternity leave, to be taken while the mother is legally prohibited from working​.

Public Holidays

Jan 1: New Year’s Day
Jan 6: Epiphany
Apr 2: Good Friday
Apr 3: Easter Saturday
Apr 4: Easter Sunday
Apr 5; Easter Monday
May 1: Staatsfeiertag
May 9: Mother’s Day
May 13: Ascension Day
May 23: Pentecost
May 24: Whit Monday
Jun 3: Corpus Christi
Aug 15: Assumption
Oct 26 National Holiday
Nov 1: All Saints’ Day
Dec 8: Immaculate Conception
Dec 24: Christmas Eve
Dec 25: Christmas Day
Dec 26: Boxing Day
Dec 31: New Year’s Eve

Resources

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