AUSTRIA PEO & EOR
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As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Austria today with Gibson Watts Global.
DID YOU KNOW
- Austria is renowned for its classical music heritage, being the birthplace of composers like Mozart and Beethoven.
- The country boasts over 700 ski resorts, making it a top destination for winter sports enthusiasts.
- Austria is home to the world’s oldest zoo, the Tiergarten Schönbrunn in Vienna, established in 1752.
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Austria EOR Services
Central Europe’s Business Gateway
Austria offers a stable and highly developed economy, modern infrastructure, and a strategic location at the heart of Europe, making it an attractive destination for international businesses. With a skilled, multilingual workforce and a commitment to innovation, Austria provides a conducive environment for companies seeking growth in the European market.
Navigating the local business environment and compliance requirements can be complex. By partnering with Gibson Watts Global as your EOR provider for Austria, we simplify the process of hiring employees and managing administrative functions. We handle everything from payroll processing to legal compliance, allowing you to focus on your core business operations while ensuring adherence to Austrian labour laws.
Working in Austria
Financial Year Dates
Austria’s financial year aligns with the calendar year, running from January 1st to December 31st.
Minimum Wage
Austria does not have a national statutory minimum wage. Instead, minimum wages are set through collective bargaining agreements across various sectors. Most agreements provide for minimum wages of at least €1,700 gross per month, resulting in an average monthly wage of approximately €1,983 gross.
Standard working hours
The standard workweek in Austria is typically 38.5 to 40 hours, depending on the sector. Most businesses operate from 9 AM to 5 PM, though flexible working hours are becoming more common, particularly in industries such as IT and finance.
Overtime
Overtime in Austria is generally paid at a rate of 50% above the employee’s regular hourly wage. The maximum allowable working time is 60 hours per week, not exceeding 48 hours over an average of 17 weeks.
Holiday Allowance
Employees in Austria are entitled to a minimum of 25 working days of paid annual leave after one year of continuous service. Public holidays are additional to this leave. In some cases, additional leave may be granted based on the terms of the employment contract or sector-specific agreements.
Sick Leave
Employees in Austria are entitled to sick leave, with a portion of the salary covered by the social security system. The first 6 weeks of sickness are paid for by the employer at a rate of 100% of the employee’s regular salary. After this period, employees are entitled to sickness benefits from the social security system, which may be at a reduced rate.
Maternity & Paternity Leave
- Maternity Leave: Maternity leave in Austria is set at 16 weeks, during which time the mother receives full pay.
- Paternity Leave: Paternity leave in Austria is set at 1 month, which must be taken within 2 months following the birth of the child.
Public Holidays
Austria observes several public holidays throughout the year, including:
- New Year’s Day
- Epiphany
- Easter Monday
- Labour Day
- Ascension Day
- Whit Monday
- Corpus Christi
- Assumption Day
- National Day
- All Saints’ Day
- Immaculate Conception
- Christmas Day
- St. Stephen’s Day
Social Contributions
Employers:
- Social Security (Pension, Health Insurance, etc.): Approximately 20.98%
- Unemployment Insurance: Approximately 3.05%
Employees:
- Social Security (Pension, Health Insurance, etc.): Approximately 18.07%
- Unemployment Insurance: Approximately 2.95%
Income Tax
Austria employs a progressive income tax system. For 2025, the tax brackets are as follows:
- Up to €13,308: 0%
- €13,308.01 to €21,617: 20%
- €21,617.01 to €35,836: 30%
- €35,836.01 to €69,166: 40%
- €69,166.01 to €103,072: 48%
- €103,072.01 to €1,000,000: 50%
- Over €1,000,000: 55%
Health Care
Austria provides universal healthcare through its public healthcare system, which is funded by government contributions and payroll taxes. Health services in Austria are generally of high quality, though there may be some disparities in access between urban and rural areas. Many expatriates and higher-income individuals opt for private healthcare services, which offer faster access and a higher standard of care.
Visas
- Work Visa: Required for foreign nationals seeking employment, sponsored by an Austrian employer, typically valid for up to one year and renewable.
- Business Visa: Allows entrepreneurs and investors to set up or manage a business in Austria.
- Temporary Residence Visa: Permits foreigners to live in Austria for up to one year, with the possibility of applying for permanent residency afterward.
- Family Reunification Visa: Enables employees to bring eligible family members to Austria. Sponsors must meet minimum income requirements (€3,030/month as of 2025) plus 10% per dependent.
13th salary?
Austria does not have a statutory requirement for a 13th salary. However, in some industries, it is common for employers to provide a bonus or extra salary payments, particularly around the holidays.
Cultural Information
Austria is a country with a rich cultural heritage, known for its classical music, opera, and ballet traditions. The country is also famous for its coffeehouse culture, with establishments like Café Central in Vienna being historic meeting places for intellectuals and artists. Austrian cuisine features dishes such as Wiener Schnitzel, Sachertorte, and Apfelstrudel. The Austrian people are known for their warmth, hospitality, and pride in their history. The country is also renowned for its arts, including music, dance, and literature, with a strong tradition of folk and classical music.