The Definitive Manual for Employee Recruitment in Austria

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Quick facts

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Austria is a federal republic located in Central Europe, bordered by Germany to the northwest, the Czech Republic to the north, Slovakia to the northeast, Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west. It has a population of approximately 8.9 million people, with the capital city being Vienna.

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Austria has a strong and diversified economy, with a GDP of $582 billion. It is known for its high standard of living and is consistently ranked as one of the wealthiest countries in the world.

It’s Europe’s land of wide, fertile agricultural plains, with large pockets of heavy industry in the east.

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Employment Contracts

An employment contract can be either fixed-term (befristeter Arbeitsvertrag) or of indefinite duration (unbefristeter Arbeitsvertrag).

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Probation Period

The probationary period typically lasts for one month, although some collective agreements may specify a shorter period. Apprentices typically have a probationary period of three months. These details should be available at the workplace.

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Working Hours

In Austria, the typical work week starts on Monday and ends on Friday. Most people have Saturday and Sunday off. The standard working hours are 8 hours per day or 40 hours per week, usually between the hours of 8 AM and 6 PM. However, some collective agreements may specify a shorter standard working week (e.g. 38.5 hours per week). There are exceptions to this, such as a daily working time of 9 hours being allowed if it results in a longer weekend rest (called a “short Friday”). The weekly standard working hours can be more than 40 hours under certain conditions. Overtime is defined as working more than the statutory 40-hour standard working week or the 8-hour standard daily working time. You will receive at least a 50% surcharge for every hour of overtime worked. If you have agreed to time compensation, you will receive 1.5 hours of compensation for every hour of overtime worked.

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Many collective agreements, such as those for night, holiday, and Sunday work, provide for higher surcharges for overtime. It is prohibited to agree to pay overtime at a 1:1 ratio. If there is an increased work requirement, 20 hours of overtime per week are permitted. Daily working hours may not exceed 12 hours and weekly working hours may not exceed 60 hours, including overtime. Collective agreements may allow for even higher levels of overtime, and additional overtime may also be permitted by company agreement.

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Vacation Days

Employees are entitled to some of the most generous annual leave entitlements in the world. They are entitled to 25 working days of paid vacation per year, which increases to 36 days after 25 years of service.

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Sick Leave

In Austria, sick employees are entitled to full salary for up to 12 weeks, depending on their length of employment. After that, they receive half pay for 4 more weeks. If sick leave is prolonged, social security pays benefits. Sick pay starts from the 4th day of illness and lasts for 26 weeks, up to a maximum of 52 weeks under certain conditions. The amount of sick pay is based on the employee’s salary and is 50% for the first 42 days of illness, then increases to 60%. There is a maximum limit on the amount of income considered for calculating benefits. Employees must inform their employer immediately about any absence and the employer can request a doctor’s note.

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Wages and Salary Payment

In Austria, there is no national minimum wage law. Instead, the wages of most workers are determined by collective agreements negotiated by the social partnership, a system of cooperation between unions and employer associations. As per the current IT sector collective agreement in 2026, employees must earn for entry level positions 2.236 EUR gross per month or more. Task groups, advancement levels determine the minimum basic salaries.

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In Austria, the 13th and 14th salaries are additional payments known as "holiday" and "Christmas" bonuses, typically paid in June and November, respectively. These payments are taxed at a lower rate, providing employees with extra income to cover summer holidays and year-end expenses.

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Public Holidays

The following days are recognized as public holidays in Austria:
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• New Year’s Day 01.01.2026
• Epiphany 06.01.2026
• Easter Sunday 05.04.2026
• Easter Monday 06.04.2026
• Labor Day 01.05.2026
• Ascension Day 14.05.2026
• Whit Sunday 24.05.2026
• Whit Monday 25.05.2026
• Corpus Christi 04.06.2026
• Assumption Day 15.08.2026
• Austrian National Day 26.10.2026
• All Saints’ Day 01.11.2026
• Immaculate Conception 08.12.2026
• Christmas Eve bank holiday 24.12.2026 (Half Day)
• Christmas Day 25.12.2026
• St. Stephen’s Day 26.12.2026
• New Years Holiday 31.12.2026 (Half Day)

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Employer Taxes

In Austria, employer taxes are divided into two main categories: social security contributions and other contributions. The final amount of taxes paid will vary depending on many factors.

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The social security contribution covers health insurance, pension insurance, accident insurance, and unemployment insurance. Additionally, in Vienna, employers pay a public transportation levy of EUR 2 per week per employee. Both the employer and employee contributions must be transferred to the health insurance provider (ÖGK) by the 15th of the following month. In 2026, the monthly marginal income limit is EUR 551.10.

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Employee Taxes

Residents of Austria are subject to Austrian income tax on all worldwide income, including income from trades, businesses, professions, employment, investments, and property. Non-residents are only subject to Austrian income tax on Austrian-source income, and the tax rates for this income are as follows:

Annual Income (EUR) | Tax Rate (%):

13,308  and below - 0 %

over 13,308   to 21,617  - 20 %

over 21,617 to 35,836   - 30  %

over 35,836  to 69,166  - 40  %

over 69,166 to 103,072  - 48  %

over 103,072 to 1,000,000 - 50  %

over 1,000,000  - 55  %

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These contributions are based on a maximum assessment basis (gross salary) of EUR 6,450 per month for current payments and apply to both employers and employees.

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需缴纳社保的收入包括员工基于雇佣关系有权获得的所有货币和非货币福利。

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通知期

雇主或雇员均可发出终止雇佣关系的通知，通知形式可以是口头、书面，或通过移交雇佣文件隐性传达。无需说明终止原因。

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在奥地利，终止雇佣关系的通知期取决于您的工作类型和工作年限。白领员工可获得雇主至少6周的通知期，并随工作年限增加（最长可达5个月）。蓝领员工可获得至少2周的通知期（集体协议可能规定更长）。员工需提前一个月（白领）或两周（蓝领）发出通知。通知期不得短于法定最低期限，在此期间，白领员工可获得额外的空闲时间来寻找新工作。

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终止雇佣和遣散费

公司可在合同中规定，任何一方均可在每月15日或最后一天终止协议。但是，公司在无故终止合同时，必须遵守任何规定的通知期并遵循指定的终止日期。根据遣散费制度，雇主需将员工月薪的1.53%存入名为Betriebliche Vorsorgekasse的遣散基金。雇佣关系结束后，员工可以选择要求支付累计资金，或将其留在基金中以供进一步投资。