What do you need to know to hire in Austria?
Austria pays salaries 14 times a year: 12 monthly plus a June holiday bonus and a November Christmas bonus. Annual leave is 25 days, probation is capped at 1 month, and employer social security runs around 21 percent on top of gross. Each guide below takes one layer.
· Austria guide
How does Teamed handle Austrian hiring for you?
Teamed becomes your legal employer of record in Austria for from $599 per employee per month, with zero FX mark-up in any currency.
Payroll, the 14-payment salary structure, and the full Austrian employment law stack run on one platform.
Real HR and legal experts manage every Austrian hire, from the first offer letter to the final Abrechnung. An actual person, not a chatbot or a pooled queue, handles your Austrian team alongside EOR, contractor onboarding, and entity payroll on one platform. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
An Austrian contractor who converts to employment keeps their record, and that same employee can graduate from EOR to your own Austrian GmbH without re-onboarding. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Austrian hire, until it isn't.
- Austria pays 14 salaries a year, not 12. A June holiday bonus (Urlaubsgeld) and a November Christmas bonus (Weihnachtsgeld) are the 13th and 14th payments. They are taxed at a lower combined rate under ASVG. Most US buyers do not model these into their cost forecasts. The cost breakdown guide shows the full annual picture.
- Austria has no statutory national minimum wage. Pay floors are set by over 800 sector-level collective agreements (Kollektivvertraege). Most major sectors now exceed EUR 2,000 a month at entry level. There is no single number to quote. The hiring guide covers how collective agreements bind your Austrian hires.
- Abfertigung Neu means every Austrian employer pays into a portable severance fund from day one. The rate is 1.53% of every monthly salary, paid to a BV fund the employee carries through their career. This is not traditional severance, it is a running cost from the first day of employment. The termination guide explains both the new and old Abfertigung systems.
Hiring in Austria adds roughly 21 percent of gross salary in employer social security contributions. On top of that, every employer pays 1.53% of monthly salary into a portable severance fund (Abfertigung Neu) from the first day of work.
Austria pays monthly, with a 13th and 14th salary payment by collective agreement. Statutory annual leave is 25 days for a five-day week. There are 13 nationwide public holidays.
Teamed runs Austrian payroll, contracts, and compliance through an EOR entity holding the required Austrian registrations.
This page is the map. Each guide below is the detail.
Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk.
How much does it cost to hire an employee in Austria in 2026?
An Austrian hire costs roughly 121 to 123 percent of gross salary once employer social security and the Abfertigung Neu fund are added.
Employer social security runs around 21 percent on top of gross. The BV fund adds another 1.53% from day one.
Employer social security in Austria (ASVG) covers pension, health, accident, and unemployment insurance across all branches. The combined employer rate runs around 21 percent, applied up to a monthly contribution ceiling. On top of that, the Abfertigung Neu fund costs 1.53% of every monthly salary, including the 13th and 14th payments. Both costs sit outside the base salary.
Austria also pays 14 salaries a year by collective agreement. The holiday bonus (Urlaubsgeld) arrives in June or July and the Christmas bonus (Weihnachtsgeld) in November. These are taxed at a reduced combined social security rate, which softens the cash cost, but they are real obligations that must be planned in your annual budget.
Teamed's Austria price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice. The full breakdown, with worked examples at current statutory rates, is in the cost guide.
Do you need an Austrian entity to hire employees in Austria?
No. An Employer of Record runs Austrian payroll and contracts from day one.
Your own Austrian GmbH becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary.
Forming an Austrian GmbH requires EUR 35,000 in share capital (EUR 17,500 paid up at registration), notarisation, and registration with the Firmenbuch. Setup takes six to ten weeks and comes with ongoing accounting, payroll, and social security filing obligations. An Employer of Record is faster and cheaper at low headcount. Teamed runs Austrian payroll, contracts, and collective agreement compliance from day one.
The crossover point depends on Austrian salary levels and your accounting costs. For most professional roles it lands around 5 to 8 employees. At that headcount your own entity's total cost crosses below the EOR fee plus social security on the same gross salary.
Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Austrian entity on one platform under Teamed's Graduation Model, with tenure preserved.
What are the key employment law rules in Austria in 2026?
Probation is capped at 1 month for most employees. Either side can end the contract during probation without notice and without giving a reason.
After probation, notice scales from 6 weeks for the first two years up to five months at 25 or more years of service (Angestelltengesetz s.20).
Austria's employment law is split between the Angestelltengesetz (white-collar workers) and the Arbeiter rules (blue-collar), with collective agreements layering on top in most sectors. The Arbeitszeitgesetz caps the standard working week and requires working time records for every employee. Payroll tax (Lohnsteuer) filings are due within 15 days of each month end.
Austria has no statutory national minimum wage. Pay floors are set by sector-level collective agreements. Over 800 Kollektivvertraege are in force. Most major sectors now exceed EUR 2,000 a month at entry level, but there is no single quoted floor. The hiring guide covers how to identify the applicable collective agreement for your Austrian hire.
What benefits must you provide Austrian employees in 2026?
The statutory floor is 25 days of paid annual leave and 6 weeks of full employer sick pay.
Maternity protection (Mutterschutz) covers 16 weeks in total. Either parent can then take up to 24 months of Elternkarenz.
Statutory annual leave is 25 days for a five-day week under the Urlaubsgesetz. Leave rises to 30 days after 25 years of service. Austria counts leave and public holidays separately. There are 13 nationwide public holidays under the Arbeitsruhegesetz. Sick pay is the employee's full salary for 6 weeks, paid by the employer under the Entgeltfortzahlungsgesetz, then a further 4 weeks at half pay, after which statutory health insurance (Krankengeld) takes over.
Maternity protection blocks work for eight weeks before birth and eight weeks after, totalling 16 weeks. During that period the mother receives Wochengeld from the health insurer at close to her average recent earnings. After Mutterschutz ends, either parent may take up to 24 months of Elternkarenz. The benefits guide covers each entitlement and employer obligations.
Read the full Austria benefits guide
What are payroll taxes in Austria in 2026?
Employee social security is 18.12% of gross earnings up to the monthly contribution ceiling.
Income tax starts at 20% above the €13,539/year zero-rate threshold and tops out at 55% above EUR 1,000,000 (EStG s.33).
Austrian social insurance splits across pension, health, accident, and unemployment branches under the ASVG. Employee contributions total 18.12% of gross, applied up to the monthly ceiling of €6,930/month. Employer contributions run around 21 percent on the same base. Contributions for the 13th and 14th salary payments are charged at a reduced combined rate.
Income tax is progressive. The first €13,539/year is untaxed. The rate then rises from 20% through 30% to 40% at EUR 36,458, reaching 48% at EUR 70,365 and 50% at EUR 104,859. A temporary rate of 55% applies above EUR 1,000,000 until 2029. Lohnsteuer payroll filings are due within 15 days of each monthly period end. The tax and payroll guide sets out every band and threshold.
How do you terminate an employee in Austria?
Austrian statutory notice starts at 6 weeks for employees with up to two years of service.
Notice scales with tenure: 2 months at 2 to 5 years, 3 months at 5 to 15 years, 4 months at 15 to 25 years, and five months at 25 or more years (AngG s.20).
Austrian notice must be given to the last day of a calendar quarter (March, June, September, December) unless the contract specifies otherwise. Terminations take effect only at those quarter-end dates, which can extend the practical notice period well beyond the statutory minimum. The employer pays full salary through the entire notice period.
Austria runs two parallel severance systems. Abfertigung Neu applies to employees hired from 1 January 2003. The employer contributes 1.53% of every monthly salary to a BV fund from day one. The employee takes the fund when they leave. Abfertigung Alt (the older system) applies to employees hired before that date. Under the old system, severance is owed only after 3 years of continuous service. The payout starts at 2 months of monthly salary and rises to a maximum of 12 months of salary at 25 years. The termination guide covers both systems in full.
What should you know before hiring in Austria?
Two things catch US buyers out. The first is the quarter-end termination rule.
The second is the collective agreement obligation: most Austrian employees are covered by a Kollektivvertrag that sets higher pay floors and additional entitlements than the statutory minimum.
Austrian notice periods terminate on quarter-end dates only. If you give 6 weeks notice on 1 March, the contract does not end six weeks later. It runs until 30 June, the next quarter-end. US buyers routinely underestimate termination costs in Austria because they calculate notice in weeks without applying the quarter-end rule. The termination guide runs the full process.
Collective agreements are not optional. Austria has over 800 Kollektivvertraege. Most cover employees in your sector by law, regardless of what your individual contract says. They set higher minimum pay, additional leave, and specific working-time rules. Teamed identifies the applicable collective agreement for every Austrian hire and applies it to the contract from day one. The hiring guide covers the collective agreement landscape.
Frequently asked questions
How much does it cost to hire an employee in Austria?
Plan on roughly 121 to 123 percent of gross salary once employer social security (around 21 percent of gross) and the Abfertigung Neu fund contribution of 1.53% are added. You also need to budget for the 13th and 14th salary payments due under collective agreements. Teamed's Austria fee is one flat number per employee per month, with zero FX mark-up. The cost breakdown guide has worked examples.
Can a US company hire in Austria without an entity?
Yes. An Employer of Record like Teamed runs Austrian payroll, contracts, and social security compliance through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Forming your own Austrian GmbH requires EUR 35,000 in share capital and takes six to ten weeks.
What is the Austrian statutory annual leave entitlement in 2026?
Statutory annual leave is 25 days for a standard five-day week under the Urlaubsgesetz s.2. Leave rises to 30 days after 25 years of continuous service. Austria counts annual leave and public holidays separately. There are 13 nationwide public holidays under the Arbeitsruhegesetz. Employers can grant more leave by contract or collective agreement.
What are Austrian statutory notice periods?
The minimum notice period is 6 weeks for employees with up to two years of service under AngG s.20. Notice rises to 2 months at 2 to 5 years, 3 months at 5 to 15 years, 4 months at 15 to 25 years, and five months at 25 or more years. Notice must terminate on a quarter-end date, which can extend the effective period beyond the statutory minimum.
What is Austria's Abfertigung Neu severance fund?
Abfertigung Neu is a portable severance savings scheme. Employers pay 1.53% of every monthly salary into an employee-specific BV fund from the first day of employment. The fund belongs to the employee and travels with them between jobs. When employment ends, the employee can draw the accumulated fund or roll it into retirement savings. This applies to employees hired from 1 January 2003.
Does Austria have a statutory minimum wage?
Austria has no national statutory minimum wage. Pay floors are set exclusively by sector-level collective bargaining agreements (Kollektivvertraege). Over 800 Kollektivvertraege are in force, each setting minimum pay for its sector. Most major sectors now require entry-level pay above EUR 2,000 a month. Teamed identifies the applicable collective agreement for every Austrian hire and applies the correct minimum from day one.
Austria reads as a straightforward Central European hire: one language, a clear statutory structure, and EU protections already in place. The surprises are the 14th salary, the collective agreement that almost certainly covers your hire, and the quarter-end termination rule that turns a six-week notice period into a six-month cost if you time it wrong. These guides exist so the first Austrian hire does not turn into an unexpected invoice.
Austria pays 14 salaries a year. The quarter-end rule means a wrong termination date costs a full quarter of salary.
Most of the cost surprises here come from not knowing which collective agreement applies before the contract is signed.
Read the right Austria guide before that first hire, not after the first invoice.
