Hiring in Austria: Complete Guide 2027
Everything you need to know about hiring and managing employees in Austria
Overview
Austria has 9.2 million people and a labour market run through the Kollektivvertrag: nearly every employer belongs to the Wirtschaftskammer, so a collective agreement applies and sets the pay floor, the 38.5-hour week and the 13th and 14th salaries. Employer social insurance is 20.98% of gross up to EUR 6,930 a month; the family fund contribution (3.7%), the chamber surcharge, municipal tax (3%) and the 1.53% severance fund take the on-cost to 29 to 31%. An EOR registers the hire with the ÖGK before day one and runs the 14-salary payroll under the right agreement.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Austria
Austrian payroll is monthly with 14 salaries: under most collective agreements the 13th is paid in June and the 14th in November, each taxed at a flat 6% within the annual sixth. The employer registers with the ÖGK (Dienstgeberkontonummer) before the employee starts, with the tax office for wage tax and with the municipality for Kommunalsteuer. Employer social insurance in 2026 is 20.98% (pension 12.55%, health 3.78%, unemployment 2.95%, accident 1.10%, insolvency fund 0.10%, housing levy 0.50%) on gross up to EUR 6,930 a month, EUR 13,860 for each extra salary; the employee pays 18.07%. On top come the family fund contribution (DB, 3.7%), the chamber surcharge (DZ, 0.31 to 0.40% by state), municipal tax (3%) and 1.53% into the severance fund from the second month. Vienna adds EUR 2 per employee per week. No statutory minimum wage: the agreement sets it. The EOR files the monthly ÖGK statement and the annual L16 wage slip.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract or Dienstzettel at hire
- Probation of 1 month
- Kollektivvertrag sets the pay floor and the 38.5-hour week
Leave & Time Off
- 5 weeks of annual leave (30 working days), 6 after 25 years
- Sick pay from the employer for 6 to 12 weeks by tenure
- Maternity protection 8 weeks before and after birth
Termination Rules
- Employer notice 6 weeks to 5 months, to the end of a quarter
- Employee notice 1 month
- Severance paid from the 1.53% Abfertigung neu fund
COMPLIANCE
Collective Agreements and Labour Leasing Compliance in Austria
Two rules decide whether an Austrian EOR is set up right. First, the Kollektivvertrag: the employer's chamber membership fixes which agreement applies, and that agreement, not the law, sets the minimum salary, the 38.5-hour week and the 14 salaries. A role in the wrong grade is underpaid from day one. Second, the Arbeitskräfteüberlassungsgesetz (AÜG): an EOR that employs staff and places them with you is a labour leasing firm. It needs the trade licence for Arbeitskräfteüberlassung and must pay the leased employee at least what your own staff earn. Employer notice (Angestelltengesetz) runs from 6 weeks to 5 months, to the end of a quarter unless the contract names the 15th or the last day of a month; severance comes from the 1.53% fund.
Key Challenges
- 14 salaries a year: every collective agreement adds a 13th and a 14th
- Employer on-costs of 29–31% once DB, DZ, municipal tax and the severance fund are added
- No statutory minimum wage: the floor sits in the Kollektivvertrag, which also fixes the 38.5-hour week
- Employer notice runs to the end of a quarter unless the contract says otherwise
- Labour leasing needs an AÜG trade licence, and the client owes equal pay
Country Highlights
Advantages
- German-speaking talent in Vienna, Graz and Linz, in the middle of Europe
- Severance is a 1.53% fund contribution, not a lump sum at dismissal
- One month of probation, so a mis-hire is cheap to undo
- EU member: no work permit for EU and EEA citizens
- Monthly ceiling of EUR 6,930 caps the contributions on high salaries
Popular Industries & Roles
Technology
Avg. Salary: €50k-€90k
Vienna, Graz and Linz hold software and embedded engineering teams around TU Wien, TU Graz and JKU Linz, employed under the IT collective agreement
Engineering & Manufacturing
Avg. Salary: €52k-€95k
Upper Austria and Styria carry the industrial base: steel in Linz, automotive engineering in Graz, machinery along the Danube, under the metal industry agreement
Life Sciences & Pharma
Avg. Salary: €48k-€85k
Vienna's pharma and biotech cluster around the Vienna BioCenter hires researchers, quality and regulatory staff for EU-wide roles
Top 3 Providers in Austria
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Coneo
- Austria, Croatia + SEE tax advisory EOR
- Formerly CONFIDA; ETL GLOBAL member
- DACH-to-Croatia nearshoring specialist
- Big 4 director-led advisory team
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Remote
- 100% owned entity model globally
- Compliance-first with IP protection
- Strong contractor management at $29/month
- Ranked #1 for compliance on G2
Frequently asked questions
Hiring in Austria through an EOR, in short.
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How much does an employer pay on top of salary in Austria?
Employer contributions in Austria come to ≈29–31%; the largest mandatory line is Pension 12.55%. With the other statutory benefits and a typical EOR fee, budget ~40–50% on top of gross salary.
What does an EOR charge per employee in Austria?
Published EOR fees in Austria run $550–950/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Austria pay in tax and contributions?
Income tax is 0–55% progressive and employee social contributions are 18.07% (10.25% pension), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Austria?
2-5 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Austria?
Coneo, Deel and Remote hold the first three places in our ranking for hiring in Austria. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Austria.
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