Government Type: Federal parliamentary republic
Currency: Euro (EUR)
GDP Per Capita: 51,936 USD (2019)
Main Business sectors: 70.3%
Employment Rate: 76.2%
Global People has a significant advantage in the Austrian market thanks to our experience in providing global employment solutions and in-depth understanding of the unique employment culture at each location.
When looking to employ in Austria, its incredibly important to understand the employment structure and be familiar with all employment rules and guidelines.
Global People, has a significant advantage in the Austrian market thanks to:
Global people’s services include:
Austria’s employment regulation, like most members of the European Union, provides the employees with broad protection and rights. The country’s employment regulation consists of a mix of Austrian legislation, EU legislation, collective bargaining agreements and the employment contracts. Austrian collective bargaining agreements are legally binding contracts in Austria, and they create a balance of interests between the employer and the employee by establishing minimum working conditions that must be made.
The employment agreement or contract must comply with Austrian law, collective agreements and EU rules. The agreements must refer to:
When deciding to terminate an employment, the company must inform the work council prior ending the employment relationship, if there is one in the company.
The council will comment on the planned dismissal and will agree or oppose to the dismissal. The employee has a right to appeal against the dismissal to the council.
When considering to terminate an employee its important to make sure beforehand if the employee is subject to special protection.
The applicable notice periods and termination dates are usually established in the relevant collective bargaining agreements. Employment can end only at the end of each calendar quarter, but this rule can be changed by individual agreement to end on the 15th or the end of each month. If the employee is being dismissed due to serious misconduct, notice period is not necessary. This type of termination is referred to as “summary dismissal”.
The notice periods are as follows:
|Period of employment||Minimum notice period|
|0-2 years||6 weeks|
|2-5 years||2 months|
|5-15 years||3 months|
|15-25 years||4 months|
|More than 25 years||5 months|
The employer is obliged to make a monthly contribution of 1.53 % of the gross salary to a public insurer (Mitarbeitervorsorgekasse).
The employee is statutorily entitled for severance payment if his employment has lasted for at least 3 years. The severance payment includes all the salaries and benefits due at the last day of employment. The amount given to the employee depends on the length of employment period and all his salary components:
|Period of employment||Severance entitlement|
|3-5 years||2 months|
|5-10 years||3 months|
|10-15 years||4 months|
|15-20 years||6 months|
|20-25 years||9 months|
|Above 25 years||12 months|
Income tax rates range from 25-55% of an employee’s gross income. Those making €11,000 or less are not required to pay income taxes (this is usually because that employee was not employed for a full year).
|Income Range (EUR)||Tax Rate (%)|
|0 – 11,000||–|
|11,001 – 18,000||25%|
|18,001 – 31,000||35%|
|31,001 – 60,000|
60,001 – 90,000
90,00, – 1,000,000
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