Exploring Employment in Austria
In Austria, there is no general "Labor Act" that regulates the employment relationship between employer and employee. Rather, the employment relationship is regulated by a large number of individual laws (e.g. Salaried Employees Act, Maternity Protection Act, Working Hours Act, Rest Periods Act, Holiday Act, etc.).
Also, depending on the area of activity or industry of the employer(s), collective bargaining agreements may apply to the employment relationship.
Collective agreements
These collective bargaining agreements contain special regulations that are applicable to the employment relationships in the respective industry. The provisions of a collective bargaining agreement are mandatory, although it is possible to agree on more favorable provisions for employees.
Wages, salaries and additional benefits
There is no general statutory minimum salary in Austria.
Depending on the industry, the applicable collective bargaining agreement determines the legal framework for minimum wages, salary increases, working hours and dismissals or terminations. Around 98% of employees in the private sector are covered by a collective bargaining agreement. While your collective bargaining agreement forms the basis for your minimum wage, in some cases you can negotiate additional pay and benefits depending on your qualifications and professional experience.
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Salary
In Austria, employees typically receive 14 salaries per year if specified in their employment contract or if the employment relationship is subject to a collective bargaining agreement. This equates to receiving a double salary twice a year. The timing of this double salary is specified in your employment contract or collective bargaining agreement. Generally, these special payments are paid in June and November as holiday and Christmas bonuses.
Social security contributions (including unemployment, health and pension insurance) and income tax are paid jointly by you and your employer. The share of your gross salary is around 40%, of which the employee pays 18.12% and the employer 21.23%. - 02
Holiday Entitlement
The holiday entitlement is based on the Austrian Holiday Act. The holiday entitlement for full-time employees is
- 30 days holiday for a 6-day working week
- for a 5-day working week 25 days holiday
per working year. After completing 25 years of service, the holiday entitlement increases to 36 or 30 days.
In the first six months of the first year of employment, the holiday entitlement accrues in proportion to the length of service completed in the year of employment and after six months in full.
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Other Forms of Paid Leave
You will be paid in full for the 13 public holidays in Austria per year. You are also entitled to continued payment of remuneration in the event of illness, personal incapacity to work or carer's leave if you have to care for a family member.
Further Information
More information on Collective Agreements.
Further useful information on average salaries can be found here.
Working conditions
Start of an employment relationship
An optional probationary period of up to one month can be agreed, during which both you and your employer can terminate the contract without notice. As the maximum duration of the probationary period is only one month, some employers agree on a fixed-term employment relationship (e.g. for the first three months of the employment relationship).
At the end of the first fixed term, the employment relationship can seamlessly transition into a permanent employment relationship.
Termination of an employment relationship
Any employment relationship can be terminated by
- Termination by the employer
- Termination by the employee(s)
- Termination by mutual agreement
- Dismissal
- Resignation by the employee(s)
Termination by employer and employee
In the event of termination by the employer, the notice periods vary depending on the length of service of the employee:
- up to the 2nd year of service - 6 weeks
- from the 3rd year of service - 2 months
- from the 6th year of service - 3 months
- from the 16th year of service - 4 months
- from the 26th year of service - 5 months
The notice period cannot be shortened by agreement below the above periods; however, it can be agreed that the period of notice ends on the 15th or on the last day of a calendar month (and not at the end of a calendar quarter).
In the event of termination by the employee, the notice period shall be one month to the last day of the calendar month. It may be contractually extended to a period of six months. In any case, the relevant provisions of the applicable collective bargaining agreement must be observed.
If the employment relationship is terminated by the employer without observing the notice period, the employee shall be entitled to compensation for the notice period. Termination by the employer cannot be based on gender, ethnicity, religion, age or disability.
Working hours
In principle, normal daily working hours may not exceed eight hours and normal weekly working hours may not exceed 40 hours.
The daily working time is the working time within a period of 24 hours, the weekly working time is the working time within the period from Monday to Sunday. The employer can negotiate with you a daily working time of up to 12 hours or a weekly working time of up to 60 hours, as long as the weekly average does not exceed 48 hours in 17 consecutive weeks. It is possible to extend this period through a collective bargaining agreement.
Flexible working hours are common depending on the industry, and overtime is permitted depending on the agreement and is compensated either through additional payment or time off. So-called "all-in agreements" are also common in Austria. Such an agreement stipulates that the employee receives a flat-rate salary for their work. This also includes any overtime worked.
Rest Periods
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Breaks
If the total daily working time is more than six hours, the working time must be interrupted by a rest break of at least half an hour. It is possible to divide the rest breaks into smaller units.
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Rest Breaks
At the end of the day's working hours, employees must be granted an uninterrupted rest period of at least eleven hours.
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Weekend rest
Employees are entitled to an uninterrupted weekly weekend rest period of at least 36 hours.
Based on these general rules, certain applicable collective bargaining agreements may contain specific provisions that must be observed.
Further Information
More information on Chamber of Labor.
General information on the commuter allowance.
You can find more information on the commuter allowance calculator here.
Home-Office and Remote-Work
The term "home office" refers in particular to the regular performance of work in the employee's home.
The term "home" also includes a home at a secondary residence or the home of a close relative or partner. Working days on which the employee is (partially) on a business trip or travelling to the employer's office do not count as home office days. Work in cafés, libraries, hotel rooms or public spaces, on the other hand, cannot constitute a tax-relevant home office day. On 1 January 2025, changes to the law will come into force that will also allow people to work outside their own four walls - for example at relatives' homes, in libraries or in cafés. The Home Office Act is to be expanded into a Remote Working Act and grant tax benefits and extended accident protection.
Home-Office regulation
Home office agreements are very common in Austria after the pandemic, but home office is only possible on a voluntary basis and must be agreed between the employer and employee. This can be part of your employment contract or an additional written agreement.
According to the law, the agreement can be terminated by either party with one month's notice for good cause (e.g. in the event of a significant change in the employee's life situation or operational requirements). The agreement may also include a time limit and cancellation options. However, this only terminates the agreement on working from home, but not the employment relationship as such.
If employees regularly work from home, the employer must provide them with the necessary digital work equipment. This includes both the hardware (e.g. laptop, mobile phone, etc.) and the necessary internet connection. Also, the employer and employee may also agree that the employee may use his or her own digital work equipment when performing his or her services in the home office. However, if such an agreement is made, the employer must pay the employee appropriate remuneration.
Notice
The applicable provisions of the Employee Protection Act (ASchG) and the Labour Inspection Act (ArbIG), which are relevant for home office work, remain applicable. However, the workplace-related health and safety regulations do not apply to the home office.
The employer is required to inform the employees about the requirements for workplace design and employee protection before starting work in the home office, whereby the company is only responsible for compliance with the employee protection regulations for the home office if office furniture or work equipment has been provided by the company.
Further Information
The generally applicable working time regulations (including maximum working hours and minimum rest periods) and the individual working time regulations continue to apply to working from home.
Here you will find a sample agreement.
Home office brochure from the Chamber of Labor.
Finanzamt services
The Austrian tax office operates as a national authority overseeing taxes, services, and budget management. With a workforce of about 6,100 employees, it is present in 67 locations across the country.
FinanzOnline, Austria's e-government platform with international recognition, is used by over 6.3 million people (as of 2024). The most important e-government portal of the tax authorities is available free of charge around the clock and requires no special software. Tax returns and other applications can be completed from the comfort of your own home at any time. Please note that you need a valid ID Austria to register with FinanzOnline.
Your FinanzOnline account is not only used for tax purposes. It is also the gateway to many online services provided by the authorities in various areas. As an entrepreneur, you can check your pension account via FinanzOnline and use services such as electronic invoicing via the company service portal (USP). It is easy and secure to deal with the authorities online with just one login. You can also use the portal to apply for family allowances. FinanzOnline is to be made even more user-friendly by linking it with other online government services and transforming it into a one-stop portal for everything to do with taxes.
Further Information
Further information on the tax office.
Under this link you can register yourself and receive a password for your personal FinanzOnline account.
Further information on ID Austria can be found under this link.
Here you will find detailed information on the tax return process.
