Hire and pay talents
with Horizons in
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 PEO is the quickest and most cost-effective way to enter the Austrian market.
|PEO Platform Hire in Austria, and pay employees through our platform or app.||PEO Cost Our Austria PEO solution is the most affordable on the market.||Time-to-hire Fast onboarding in Austria, hire in as little as 24 hours.|
|Contracts We draft labor contracts compliant with Austria labor law.||Local Benefits We administer all mandatory benefits and contributions in Austria.||185+ Countries It doesn’t stop with Austria — we are an international PEO|
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 PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.
|Probationary period||0 – 1 month|
|Termination notice period||6 weeks (minimum)|
|Severance||2 months salary after 3 years’ service|
|Probationary period||0 – 1 month|
|Termination notice period||6 weeks – 5 months|
|Severance||2 months – 12 months (after 3 years’ service)|
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).
Quick, compliant hiring in 24 hours—no subsidiary required.
Employees in Austria commonly receive the following public holidays (but not necessarily all):
|1 Jan, 2023||New Year’s Day|
|6 Jan, 2023||Epiphany|
|10 Apr, 2023||Easter Monday|
|1 May, 2023||Labor Day / May Day|
|18 May, 2023||Ascension Day|
|29 May, 2023||Whit Monday|
|8 Jun, 2023||Corpus Christi|
|15 Aug, 2023||Assumption of Mary|
|25 Sep, 2023||Yom Kippur|
|26 Oct, 2023||National Day|
|1 Nov, 2023||All Saints’ Day|
|8 Dec, 2023||Immaculate Conception|
|25 Dec, 2023||Christmas Day|
|26 Dec, 2023||St. Stephen’s Day|
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.
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.
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.
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 PEO can mitigate risk for foreign companies and provide guidance through this process.
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%.
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.
There is no legally determined minimum wage in Austria. However, most roles will have a negotiated minimum, so 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)|
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 PEO. Our outsourcing services will cover your benefit setup and management, helping you focus on a faster and more successful expansion.
With Horizons, you get quick service, transparent pricing, and expert support.
An Austria PEO and an Austria EOR are two types of companies which specialize in providing human resources services to businesses in Austria.
The main difference between an Austria PEO and an Austria EOR is in the scope of their services.
Austria PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging an Austria PEO is essentially outsourcing your HR duties in Austria.
Austria EORs actually take over as the legal employer of your employees based abroad. Austria EORs become responsible for labor compliance for your employees in Austria.
At Horizons, we offer both PEO and EOR services in Austria. Get in touch now and let us know what service you are seeking.
A PEO 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.
In most cases, Horizons’ Austria PEO 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.
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.