Employer of Record (EOR) in Austria:Kollektivvertrag & 14-Month Salary Compliant PEO
Hire Without An Austrian Entity
Austria EOR in 60 seconds
An Employer of Record (EOR) in Austria is a local employer that hires your worker legally in Austria on your behalf. NNRoad becomes the legal employer of the Austrian employee; you direct the day-to-day work, priorities, and performance.
Austria hiring snapshot
| Topic | Austria (practical reality) |
|---|---|
| Currency / Time zone | EUR / CET-CEST |
| Minimum pay setting | No single statutory minimum wage; minimums are commonly set via collective agreements (KV) |
| Special payments | “13th/14th salary” style holiday pay & Christmas bonus are typically stipulated in KVs (not a universal statutory rule) |
| Leave baseline | Minimum 5 weeks paid annual leave (often expressed as 25 working days on a 5‑day schedule) |
What you get with NNRoad Austria EOR
- Employment setup designed around Austria’s KV-first environment
- Clean documentation (contract / notice of employment terms) and audit-friendly records
- Monthly payroll operations with clear approvals for variables
- Leave administration (annual leave, sick leave handling, parental leave coordination where applicable)
- Offboarding support aligned to Austrian notice periods and procedural steps
Austria is “KV-first”: how we align your role to collective agreements
Why “KV mapping” matters in Austria
Austria has very high collective agreement coverage, and many minimum employment conditions (pay floors, allowances, working-time rules, and special payments) are shaped by the relevant Kollektivvertrag (KV). Getting the KV classification right is one of the most important steps for compliant hiring.
No statutory minimum wage (what that really means)
Unlike many EU jurisdictions, Austria does not rely on a single nationwide statutory minimum wage. Instead, collective agreements provide minimum wage protection that should not be undercut.
KV alignment checklist (practical)
- Industry scope: which KV is likely applicable for the employing entity and the role?
- Job family & grading: classification and seniority level used in KV wage tables
- Working time model: standard hours, overtime triggers, time off in lieu options
- Special payments: confirm whether holiday pay / Christmas bonus are required and how they are calculated
- Allowances: review role-specific allowances or premiums if the KV requires them
External references (official / authoritative)
What NNRoad manages as your Austria Employer of Record
Employment documentation (Austria-ready)
- Role-specific employment documentation aligned to Austrian law and the practical KV environment
- Clear definition of compensation components (base, variable, allowances, special payments if applicable)
- Working time model documentation (standard hours, overtime governance, reporting cadence)
- Remote/hybrid arrangements documented where relevant
Payroll operations & employment administration
- Monthly payroll cycle management (with client approval for variable components)
- Leave administration and tracking (annual leave, sick leave, and other statutory leave types)
- Employee changes: promotions, salary changes, location changes, contract amendments
- Employee support workflows and recordkeeping discipline
Offboarding support
- Resignation or employer termination support with correct notice periods and termination dates handling
- Final payroll and documentation checklist
- Guidance on procedural steps when a works council exists
What you keep control of
- Hiring decision, team structure, and day-to-day management
- Performance management and work output ownership
- Budget and compensation strategy (within KV and legal constraints)
From offer to first payslip: a practical Austria EOR workflow
Step 1 — Role intake (what we confirm upfront)
- Work location (Vienna vs other provinces; remote vs office)
- Job scope + seniority signals used for KV alignment
- Working time expectations (standard schedule vs shift / client overlap)
- Compensation structure (base + variable + allowances + expected “special payments” approach)
Step 2 — Offer design that matches Austria conventions
In Austria, offers are often evaluated not only on annual gross salary, but also on how compensation is structured across the year (e.g., special payments in summer/winter). We help you present an offer that is market-readable and compliance-aware.
Step 3 — Onboarding pack (what we collect)
- Employee identification details and right-to-work checks
- Address and bank details for payroll
- Emergency contact (recommended)
- Any policy acknowledgements required for your environment (security, confidentiality)
Step 4 — Payroll go-live
We set the payroll calendar, establish approvals for variable items (bonus, commissions, overtime approvals, expense reimbursements), and ensure leave tracking is operational from day one.
Need cost planning before you hire?
Use Austria labor cost calculator to estimate total employment cost beyond base salary.
Working time, overtime, and leave in Austria
Overtime in Austria: the “right of refusal” detail many employers miss
Austria has specific protections around overtime. If overtime would push working time beyond 10 hours/day or 50 hours/week, employees may refuse that overtime without giving reasons and must not be disadvantaged for refusing.
Overtime compensation (typical rule)
Overtime is commonly compensated with a 50% premium or by agreeing time off in lieu (often accruing 1.5 hours of time off per overtime hour), subject to the concrete setup and any KV requirements.
Annual leave baseline
Employees have a minimum entitlement to five weeks of paid annual leave each working year (commonly shown as 25 working days on a 5‑day schedule). After long tenure, the minimum entitlement increases.
Sick leave: continued remuneration (high-level)
Where illness or accident prevents work (without employee intent or gross negligence), employees are typically entitled to continued remuneration for an initial period which can increase with tenure, followed by a further period at partial remuneration, with social insurance potentially applying thereafter.
Official references (external)
Special payments in Austria (13th/14th): how we handle them correctly
First: what these payments are (and what they are not)
In Austria, “holiday pay” and “Christmas bonus” are widely known as 13th and 14th monthly salaries. They are not defined as a universal statutory entitlement, but they are mostly stipulated in collective agreements and are therefore a common compliance and budgeting requirement.
Why it matters for budgeting and payroll
- Your total annual compensation cost may be structured as 14 pay installments rather than 12.
- Correct payroll setup depends on whether the role is KV-covered and how the KV defines calculation and payout timing.
- Offer letters should be written in a way that avoids ambiguity (employee expectations vs. contractual obligations).
How we operationalize special payments
- Confirm whether the relevant KV stipulates special payments
- Define what is included in the base for calculation (role-specific and KV-specific)
- Schedule payouts and payroll processing so finance can plan cash flow
- Keep documentation consistent for audit-readiness
External reference (authoritative)
Termination, notice periods, works council steps, and Abfertigung NEU
Notice periods (statutory baseline)
Austria has structured statutory notice periods, and termination dates may depend on contract type and agreements. Employer notice typically increases with tenure.
| Employer notice (indicative baseline) | Employee notice (indicative baseline) |
|---|---|
| 6 weeks (years 1–2), then 2 / 3 / 4 / 5 months as tenure increases | Often 1 month (subject to contract/CBA specifics) |
Works council (Betriebsrat): procedural reality
If a works council exists, employers must generally inform the works council before dismissals. The council has a consultation window to provide its opinion. This is a key procedural step that should be planned in termination timelines.
Abfertigung NEU (severance fund contribution)
Austria’s “Abfertigung NEU” scheme is funded through ongoing employer contributions to a severance fund. The employer contribution is commonly stated as 1.53% of monthly remuneration and applicable special payments, collected via the competent institution and forwarded to the selected fund.
Mass redundancy / AMS notification (when applicable)
For larger headcount reductions, Austria has an “early warning” framework involving notification to the AMS (Austrian Labour Market Service) under certain thresholds. This can create timeline constraints. For any multi-employee reduction plan, we recommend scenario planning in advance.
Official references (external)
- USP: Notice of termination (notice periods)
- USP: Works council (dismissal information duty)
- USP: Abfertigung NEU (1.53% contribution)
- Official portal: ending employment overview
Compliance note: Termination risk is fact-specific (tenure, KV, role, process). This section is general information and not legal advice.
Austria EOR “non-obvious” risk checkpoint: labour leasing / hiring-out of labour
Why this topic exists in Austria
Austria distinguishes between standard direct employment and arrangements where one employer makes its workforce available to another company to perform work. In official terminology, this is often described as labour leasing / provision of personnel.
What this means for EOR-style models
Depending on how the operational relationship is structured (control, supervision, integration, and who bears employer risks), EOR engagements can intersect with Austria’s labour leasing concepts. A compliant setup requires the right documentation, role governance, and (where applicable) correct treatment of employer-side obligations.
How we reduce risk in practice
- Define governance: outcome ownership, reporting cadence, and day-to-day supervision boundaries
- Keep documentation consistent: contract terms, job scope, work location, working time model
- Ensure payroll and employer costs reflect the correct legal and operational setup
- Escalate early for complex scenarios (regulated roles, multi-client set-ups, or cross-border structures)
External references (official)
Austria HR glossary (quick terms your team will see)
Key Austria terms
- KV (Kollektivvertrag): collective agreement that can set minimum pay and working conditions
- Sonderzahlungen: special payments (often “holiday pay” and “Christmas bonus”)
- Abfertigung NEU / MV-Kasse: severance fund system funded via ongoing employer contributions
- Betriebsrat: works council (consultation rights in certain processes)
- AMS: Austrian Labour Market Service (relevant in certain collective redundancy scenarios)
- DSB: Austrian Data Protection Authority (GDPR supervisory authority)
Data protection & HR data governance in Austria (GDPR + DSG)
Why HR teams should care
Hiring employees in Austria means processing HR and payroll personal data under GDPR plus Austria’s national data protection framework. Your EOR process should be clear on data access, retention, and security controls—especially when HR systems are global.
Practical controls we recommend
- Role-based access to HR and payroll data
- Defined retention rules for candidate and employee files
- Secure document exchange (avoid email attachments for sensitive IDs)
- Offboarding: access removal + data handover discipline
Official reference
QUICK FAQs
Does Austria have a statutory national minimum wage?
No single statutory national minimum wage applies across all roles. Minimum pay is commonly set via collective agreements (KV), and employers should not undercut KV minimums.
Are the 13th and 14th salary mandatory in Austria?
Special payments (holiday pay and Christmas bonus) are not a universal statutory entitlement, but they are mostly stipulated in collective agreements—so in practice they are very common and must be handled correctly when applicable.
How long is probation in Austria?
A probationary period can be agreed. In most cases it is limited by law to one month (with special rules for apprenticeships).
What is Abfertigung NEU?
Abfertigung NEU is a severance fund contribution model funded by ongoing employer contributions (commonly cited as 1.53% of remuneration and special payments). It is part of standard employer cost planning in Austria.
What if we need contractors instead of employees?
If your engagement is deliverable-based and genuinely independent, a contractor model may fit. For structured contractor engagement support, see Austria on-demand talent. If the role is long-term and employee-like, EOR employment is usually safer.