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Employer of Record Austria
Hire staff and expand your business in Austria with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Austria designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Austria. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Austria takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Austria
A Brief Guide to Austria
Austria has a high standard of living and is known for its excellent healthcare and education systems. It is also recognized for its environmental sustainability efforts, with a commitment to renewable energy and conservation practices. Austria has a parliamentary system of government and is a member of the European Union, the United Nations, and other international organizations.
Category | Information |
Location | Central Europe |
Capital | Vienna |
Largest City | Vienna |
Official Language | German |
Area | 83,871 square kilometers |
Population | Approximately 9 million |
Currency | Euro (EUR) |
Major Cities | Graz, Linz, Salzburg, Innsbruck |
GDP (2020) | $450.8 billion USD |
Human Development Index (HDI) | 0.922 (very high) |
Major Industries | Manufacturing, services, tourism, and agriculture |
Business Culture
Business Culture in Austria
Business culture in Austria is formal, with an emphasis on professionalism, respect for authority, and building long-term relationships. Punctuality, conservative business attire, and direct communication are valued. Hierarchy is prevalent, with decisions often made by senior management. Personal relationships and trust are important, and small talk and socializing are common before getting down to business. Austrians appreciate competence and expertise in business dealings, and it’s important to be well-prepared for meetings.
Work-life balance is respected, and observing proper business etiquette, such as exchanging business cards and addressing colleagues with appropriate titles, is expected. Overall, success in Austrian business culture requires professionalism, formality, respect, and building strong relationships.
Payroll and Taxes
Payroll and Taxes in Austria
Standard practice in Austria is to have 14 pay months in a year. The additional two pay months are often paid as a separate bonus, typically in June and December, and are subject to the same payroll taxes and deductions as regular monthly salaries.
Employee Taxation
Employee taxation in Austria depends on various factors, including the employee’s income level, marital status, and number of dependents. In Austria, income tax rates are progressive, meaning that higher income levels are subject to higher tax rates:
Income Range (EUR)
| Income Tax Rate |
Up to 11,000 | 0% |
11,001 – 18,000 | 25% |
18,001 – 31,000 | 35% |
31,001 – 60,000 | 42% |
Over 60,000 | 50% |
Employer Taxation
Employers cost in Austria go beyond just the gross salary paid to employees. Employers in Austria are also responsible for various employer costs, which may include:
Employer Costs in Austria | Approximate Percentage of Gross Salary |
Social Security Contributions | 22% – 24% |
Health Insurance Contributions | 3% – 4% |
Austrian Public Employment Service (AMS) Contributions | 1% – 2% |
Accident Insurance Contributions | 1% – 2% |
Pension Fund Contributions | 1% – 2% |
Employment Law
Employment Law in Austria
Employment Contracts: Employment contracts are typically in writing and must specify important details such as the duration of the employment, working hours, salary, and notice period for termination.
Working Hours: The standard maximum working time in Austria is 40 hours per week or 8 hours per day. Overtime work is generally limited to 10 hours per week or 20 hours per month. There are also specific regulations for night work, Sunday work, and public holiday work.
Employees Rights: Employees in Austria have various rights, such as the right to equal treatment, protection against discrimination, and freedom of association. There are also regulations related to working conditions, workplace safety, and employee representation.
Leave: Austrian employees are entitled to various types of leave, including paid annual leave (minimum of 25 working days per year), maternity leave, paternity leave, sick leave, and family care leave.
Termination: Termination of employment in Austria is subject to strict regulations, including notice periods that vary depending on the length of employment. Unjustified termination can result in claims for damages or reinstatement.
Collective Bargaining Agreements: Collective bargaining agreements are widely used in Austria and cover many aspects of employment, including wages, working hours, and other employment conditions. These agreements are negotiated between employers’ associations and trade unions.
Pension and Healthcare
Austria Pensions
There is no general legal requirement for employers in Austria to provide a mandatory employer pension (or retirement) plan for their employees. However, there are some industry-specific and company-specific collective bargaining agreements or employment contracts that may require employers to provide pension benefits or make contributions towards retirement savings on behalf of their employees.
Healthcare in Austria
A universal healthcare system exists in Austria, which means that all residents are entitled to healthcare services regardless of their income or employment status. The healthcare system is funded through a combination of social health insurance contributions from employees and employers, government subsidies, and general tax revenues.
Wondering if expanding
in Austria is right for you?
Read on or speak to a member of our team now
The Benefits
Austria Employer of Record Benefits
When you choose Agility EOR to expand in Austria, we guarantee an employer of record service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Austria so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Austrian authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Austria payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.