Austria EOR & PEO

Start hiring in Austria

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Hire in Austria

Horizons provides compliance solutions to ensure your business in Austria operates in line with Austrian labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Austria in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as an Austria Employer of Record, absorb all local employer liabilities. Partnering with our Austria EOR is the quickest and most cost-effective way to enter the Austrian market. Note, an Austria Employer of Record is also known as an Austria Professional Employer Organization (PEO).

Facts & Stats

stay compliant with Austria labor laws

Employment Laws

Employment contracts in Austria

When hiring in Austria, we strongly recommend that you provide all employees with a written contract of employment. Each contract needs to have any relevant details of the employment arrangement, such as salary, vacation leave, and termination terms. It should be written in German and use the Euro currency for any references to money.

By partnering with our Austria EOR, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Fixed-term

Indefinite

Working hours in Austria

The majority of workers are limited to 40 hours per week and eight hours per day, although some employees may negotiate lower limits via collective bargaining agreements (CBAs) or individual negotiations. For work beyond these limits, employers will need to either offer the time as time off in the future, or pay overtime, which is at least 150% of normal pay (or 200% for nights and weekends).

Public holidays in Austria

Employees in Austria commonly receive the following public holidays (but not necessarily all):

Holiday Schedule in Austria [2024]

Austria has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan, 2024	New Year’s Day
6 Jan, 2024	Epiphany
1 Apr, 2024	Easter Monday
1 May, 2024	Labor Day / May Day
9 May, 2024	Ascension Day
20 May, 2024	Whit Monday
30 May, 2024	Corpus Christi
15 Aug, 2024	Assumption of Mary
12 Oct, 2024	Yom Kippur
26 Oct, 2024	National Day
1 Nov, 2024	All Saints’ Day
8 Dec, 2024	Immaculate Conception
25 Dec, 2024	Christmas Day
26 Dec, 2024	St. Stephen’s Day

Austria vacation leave

For employees that have worked at least six months with an organization, employers must provide at least 25 days of paid vacation leave. After 25 full years of employment, workers can take an extended allowance of 30 days of paid vacation leave each year.

Some employers may choose to offer more holiday, but these are the legal minimums and most commonly offered vacation allowances.

Austria sick leave

Most employment contracts will offer paid sick leave to employees. The exact number of days and amount of compensation varies, however, and depends on the individual role, any negotiations and CBAs, and the length of employment, among other factors.

Parental leave in Austria

Mothers in Austria are required to take 16 weeks of paid maternal leave, split as eight weeks prior to and eight weeks after the birth. Both parents can take unpaid leave until the child is two years old, and the minimum amount they are entitled to is two months. Employers must retain their positions until at least four weeks after they return to work.

Terminations and severance in Austria

The mandatory notice periods required for terminations vary depending on an employee’s time with a company (once out of any probation period). For less than two years of employment, the notice period is six weeks. For three to five years of employment, the notice period is two months. Six to 15 years is three months, 16 to 25 years is four months, and 26 years or more is five months of notice.

Severance payments are common upon termination in Austria, and employers generally contribute a percentage of salary to a severance fund that is either paid or passed on to the next employer.

The exact terms of terminations and severance can vary significantly, so it is important that you fully understand the specifics of your situation and agreements when employing in Austria. Always get professional advice if you are unsure.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Austria EOR can mitigate risk for foreign companies and provide guidance through this process.

Taxation in Austria

Employers and employees in Austria must both contribute a certain amount towards various funds to benefit employees. For example, they must contribute 12.55% and 10.25% of salary respectively to pension insurance, and 3.78% each for health insurance. Employers also need to cover accident insurance for the workplace, at a rate of 1.3%. In total, mandatory social benefit contributions are generally around 32% on top of salary for employers.

Income tax in Austria is progressively rated from 0% to 55% depending on employee income.

The corporate tax rate in Austria is 25%.

Health coverage in Austria

Austria has a comprehensive public health system, so it is not necessary or the norm for employers to offer private health insurance. However, some organizations may choose to offer it as part of their benefits packages, particularly for more senior-level roles.

hassle-free Austria compensation & benefits

Compensation & Benefits

Compensation laws in Austria

No national minimum wage; determined by collective agreements.
Additionally, it is vital that you understand the CBAs and individual negotiations for each employee when hiring in Austria.

Minimum Wage Country Comparison Chart	(Per month in USD)
Switzerland (Geneva)	$4,000
Italy	$2,255
Australia	$1,996
Austria	$1,582
Algeria	$156
Uzbekistan	$22

Benefit management in Austria

Setting up a benefits system for your Austrian employees can be difficult and complicated to navigate if you are unfamiliar with the country and its labor laws. If you want to tackle the setup independently, you can expect it to take several weeks and potentially present delays to your expansion process.

Horizons offers an alternative to simplify your benefits management through our Austria EOR. Our outsourcing services will cover your benefit setup and management, helping you focus on a faster and more successful expansion.

Austria Employer Of Record Peo

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Hire in Austria

Employment Laws

Working hours in Austria

Compensation & Benefits

Frequently asked questions

Hire borderless talent with Horizons

Hire in Austria in 24h without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

Frequently asked questions

What is the difference between an Austria PEO and an Austria EOR?

Generally speaking, the terms “Austria PEO” and “Austria EOR” are used interchangeably.

Can an EOR in Austria hire both local and foreign nationals to work in Austria?

An EOR in Austria can feasibly hire both local and foreign nationals to work in Austria.

However, the ability of Horizons to sponsor your foreign national employee in Austria may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Austria EOR service take to hire an employee?

In most cases, Horizons’ Austria EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Austria.

Is it possible to get a work visa in Austria?

It is possible to get a work visa in Austria. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Austria are limited, however—get started today to secure your employees’ visa spot.

Austria EOR & PEO

Start hiring in Austria

SIMPLE, COMPLIANT HIRING WITH HORIZONS EOR

Hire in Austria

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stay compliant with Austria labor laws

Employment Laws

Employment contracts in Austria

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Austria

Public holidays in Austria

Austria vacation leave

Austria sick leave

Parental leave in Austria

Terminations and severance in Austria

Taxation in Austria

Health coverage in Austria

hassle-free Austria compensation & benefits

Compensation & Benefits

Compensation laws in Austria

Benefit management in Austria

Hire in Austria in 24h without your own local entity.

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