Payroll information

‍

Payroll Cycle

The standard payroll cycle in Austria is monthly, with the payment date typically set at the end of the month. Some employers may also choose to pay employees bi-weekly or weekly. It's important to note that employees must receive their salary at least once a month.

‍

Employment Law

Austrian employment law is governed by the Labor Constitution Act and various other regulations. The law outlines several provisions, including working hours, overtime, paid leave, and social security contributions.

It's important to note that payroll information in Austria can be subject to changes in tax regulations and employment laws, and it's recommended to seek professional advice or consult with official government sources for the most up-to-date and accurate information.

‍

Employment Contract

Employment contracts in Austria must be in writing and must include certain provisions, such as the job description, the duration of the contract, the salary, and working hours. The contract must also outline the notice period required for termination and the relevant provisions for severance pay.

‍

Probation Period / Trial Period

Employers in Austria are allowed to establish a probation period for new employees. The probation period is limited to a maximum of 6 months for regular employees and three months for temporary employees. During this period, either party can terminate the employment relationship without giving a reason and without notice.

‍

Working Hours

The standard working hours in Austria are 40 hours per week, with a maximum of 10 hours per day. Part-time employees are entitled to work fewer hours, and employers must ensure that they receive the same benefits and protections as full-time employees.

‍

Overtime

Overtime is compensated at a rate of at least 1.25 times the regular hourly rate for the first 2 hours and 1.5 times the regular hourly rate thereafter. Employers are required to keep records of overtime worked by employees.

‍

Bonus

Bonuses in Austria are typically discretionary, and there is no legal requirement for employers to provide them. However, many employers offer bonuses as a way to incentivize employees and recognize their contributions.

‍

Termination

Employment relationships in Austria can be terminated by either the employer or the employee, with certain notice periods required. The length of the notice period depends on the length of service and the terms of the employment contract. Employers must provide a reason for termination, and employees have the right to challenge the decision in court.

‍

Notice Period

The notice period required for termination depends on the length of service, ranging from two weeks for employees with less than six months of service to 6 months for employees with more than 25 years of service.

‍

Redundancy / Severance Pay

In cases of redundancy, employers in Austria must follow strict procedures and provide affected employees with a notice period and severance pay. The amount of severance pay depends on the length of service and the terms of the employment contract.

‍

Maternity Leave

Female employees in Austria are entitled to 16 weeks of maternity leave, which can begin 6 weeks before the expected due date. During this period, the employee is entitled to continued payment of her salary, which is covered by the social security system. Employers are prohibited from terminating an employee's contract during maternity leave.

‍

Paternity Leave

Male employees in Austria are entitled to one week of paternity leave, which can be taken within the first 8 weeks following the birth of the child. During this period, the employee is entitled to continued payment of his salary, which is covered by the social security system.

‍

Parental Leave

Employees in Austria are entitled to parental leave for a total of 2 years per child. This leave can be taken by either parent or split between them. During parental leave, employees are entitled to continued payment of their social security contributions, but not their salary. Employers are prohibited from terminating an employee's contract during parental leave.

‍

Vacation and Annual Leave (paid time off)

Employees in Austria are entitled to at least 25 days of paid annual leave per year. Employers are required to provide employees with a minimum of 2 consecutive weeks of leave. Employees who have worked for the same employer for at least 25 years are entitled to an additional week of leave.

‍

Sick Leave

Employees in Austria are entitled to sick leave if they are unable to work due to illness or injury. During this period, employees are entitled to continued payment of their salary for up to 6 weeks, which is covered by the social security system. After six weeks, the employee may be eligible for a disability pension.

‍

Other Leave

Employees in Austria are entitled to other types of leave, including compassionate leave, military leave, and study leave. The length of these leaves and the amount of pay during the leave may vary depending on the circumstances.

‍

Other Benefit

In addition to the above, employers in Austria may offer other benefits to employees, such as health insurance, retirement plans, and bonus schemes. These benefits are typically discretionary and are not required by law.

‍

Holidays in Austria

Employees in Austria are entitled to 13 public holidays per year, which include New Year's Day, Easter Monday, Labor Day, Ascension Day, Whit Monday, National Day, All Saints' Day, Christmas Day, and St. Stephen's Day.

‍

Taxation

‍

Personal Income Tax

The personal income tax system in Austria is progressive, with rates ranging from 0% to 55%. The tax rate increases as income levels rise, with the top tax rate of 55% applying to income above €1 million per year. The tax brackets and rates are as follows:

• Up to €12,000: 0%
• €12,000 - €18,000: 25%
• €18,000 - €31,000: 35%
• €31,000 - €60,000: 42%
• €60,000 - €90,000: 48%
• €90,000 - €1,000,000: 50%
• Above €1,000,000: 55%

In addition to the personal income tax, employees in Austria are also subject to a social security contribution, which is paid by both the employer and employee.

‍

Social Security

Social security contributions in Austria are divided into three main categories: pension insurance, health insurance, and unemployment insurance. The total social security contribution rate for employees and employers in Austria is approximately 41.12% of the gross salary, with the employee and employer each responsible for approximately half of the contribution. The breakdown of the social security contributions is as follows:

• Pension Insurance: 22.8% (with the employer paying 12.55% and the employee paying 10.25%)
• Health Insurance: 7.65% (with the employer paying 3.78% and the employee paying 3.87%)
• Unemployment Insurance: 3% (with the employer paying 1.44% and the employee paying 1.56%)

In addition to the above contributions, employees in Austria may also be subject to other contributions, such as accident insurance and family allowance contributions.

‍

Visas and Foreign worker

‍

General Information

Determine the type of work visa needed

There are several types of work visas available in Austria, including the Red-White-Red Card, the EU Blue Card, and the Working Holiday Visa. Each type of visa has its own requirements and restrictions, so it's important to determine which visa is most suitable for your circumstances.

‍

Find an Austrian employer

In order to obtain a work visa in Austria, you must have a job offer from an Austrian employer. The employer must then provide proof of the job offer and apply for the necessary permits on your behalf.

‍

Apply for the necessary permits

Once the employer has provided proof of the job offer, they must apply for the necessary permits, such as the Residence Permit and the Work Permit, on your behalf. These permits will allow you to legally reside and work in Austria.

‍

Gather required documentation

In order to apply for a work visa in Austria, you will need to gather and submit various documents, including a valid passport, a job offer letter, proof of qualifications and work experience, and proof of health insurance coverage.

‍

Attend an interview

You may be required to attend an interview as part of the visa application process. During the interview, you may be asked questions about your qualifications, work experience, and reasons for wanting to work in Austria.

‍

Wait for the visa to be approved

Once you have submitted all the necessary documents and attended any required interviews, you will need to wait for your work visa to be approved. The processing time for work visas in Austria can vary, so it's important to apply well in advance of your intended start date.

‍

‍