Working In Austria: Employee Benefits

Hiring workers in Austria: what to consider

Considered one of the best, Austria is renowned for its standard of living and benefits. In 2019 alone, it ranked as one of the top 5 countries in terms of quality of life, with Vienna as the most livable city in the world.

With its spectacular level of social security and low crime rate, Austria boasts a tremendous amount of benefits and insurance for its citizens. As an employer in Austria, there are some benefits employees are entitled to with their corresponding definition.

Child Benefit and Child Tax Credit

Eligibility

Employees are entitled to these benefits if you are:

  • A permanent or habitual residence in Austria
  • Have a child/children not older than 18 years old

However, according to the European Commission (EC), the 18-year-old rule can be up to 24 years if the children are “in training for an occupation or receiving further college training in an occupation they have learnt.”

There is also no age limit for children under 21 years old or during their vocational training (commonly about 25 years old below) who are assumed to be incapable of working due to disabilities.

Benefit

  • A set amount of financial assistance to the parents for child benefit. 
  • An additional monthly child tax credit of EUR 58.40

The amount given for child benefit is dependent on the child’s age and how many children the parents have.

Furthermore, children with severe disabilities have an additional compensation of a flat rate of EUR 155.90.

 

Child-raising allowance

Eligibility

  • Fulfilled general eligibility (Receipt of child benefit, legal residency in Austria, etc.)

Benefit

  • A flat-rate amount between 365 to 851 days after the child’s birth.

Parents can opt to receive the amount in a shorter or longer time. Choosing the smaller amount of days yields a daily-flat rate of EUR 33.88 while the longer is EUR 14.53.

Maternity Benefits

Eligibility

  • Insured women before, during, and after birth

 

Benefit

  • Consultation with a physician and midwife assistance during pregnancy
  • Medicines and equipment
  • 10-day maximum hospital care (extended for complications during pregnancy and delivery)
  • Financial compensation of their average net wages calculated from the past three months
  • Eight weeks of maternity leave before and after birth
  • Dismissal and termination protection period (only possible with exceptional cases)

 

Paternity Benefits

Eligibility

 

Benefit

  • Four weeks off from work for fathers (only within the period of the child’s birth and before the mother resumes her job)
  • One-off “grant” of EUR 700

Austria does not have a national minimum wage system; what they do have is an agreement of the minimum salary as per industry. The industry agreement blossomed a somewhat unofficial minimum wage of about EUR 1500 per month, which is higher than other European countries.

Sickness Cash Benefits

Eligibility

  • If you are ill and unable to work
  • Incapable of work for more than three days
  • A doctor’s sick note on the entitlement of the benefit

The sickness cash benefit is secondary. There will be no compensation if you are still earning your entire salary.

Benefit

  • Financial assistance starting on the fourth day of sickness

 

The calculated amount is from your last wage. The maximum is EUR 5,550 per month. 

The compensation is 50% of your salary if you are sick for 42 days below. For a more extended period, it will increase up to 60%.

 

Rehabilitation Allowance

Eligibility

  • Disabled or unable to work for more than six months
  • The expected improvement of health to work again

If your sickness insurance fund checks and you are incapable of improving even with continued rehabilitation allowance, you are entitled to an invalidity pension.

Benefit

  • An amount equivalent to your sickness cash benefit with a minimum compensation of EUR 1000.48 a month

 

Long-term Care 

Eligibility

  • Permanent or habitual residence in Austria
  • Dependent of care on another person for an average of 65 hours above a month
  • Need of care for more than six months
  • According to Regulation 883/2004

 

You can avail of this benefit even if you are not a resident of Austria if no other state is responsible for care benefits.

Services

Eligibility

  • Insured
  • Have your e-card

 

Benefit

Alongside maternity and sickness assistance, citizens also have services such as:

E-card

E-cards are given to insured individuals, alongside co-insured family members, to confirm their insurance coverage.

Accident at Work & Occupational Disease

Eligibility

 

Benefit

  • Financial assistance alongside sickness cash benefit
  • Daily allowance if you are in a hospital or a special clinic

 

Rehabilitation Measures

According to the European Commission, “insurance institutions may provide medical, occupational or social rehabilitation measures.”

 

Invalidity Pension

Eligibility

  • Permanent invalidity with rehabilitation measures
  • Minimum insurance period based on age

 

If you are 26 years old below, you are entitled to the invalidity pension if you have covered insurance for a minimum of six months.

Invalidity will occur if working capability has decreased to half compared to a healthy person with a similar skill level.

Self-employed individuals and unskilled workers have invalidity if they cannot obtain half of their revenue contrasted to a healthy person with the same activity.

Benefit

  • Financial assistance calculated on a case-by-case basis

Eligibility

  • Unemployed
  • Able to work
  • Achieved the minimum period of insurance  

 

The European Commission stated that the minimum is when you are covered “at least 52 weeks during the last 24 months, or 26 weeks within the last 12 months if you are below the age of 25 years.”

Benefit

  • 55% of daily net income for primary unemployment benefits, 

 

This percentage may rise to 80% with the help of family supplements.

Standard old-age pension

Eligibility

  • Completed the required amount of insurance periods
  • Attained retirement year (60 for women and 65 for men)

 

Benefit

 

Early Retirement Pension

Eligibility

  • Completed the required amount of insurance periods (40 years of contributions)
  • Before retirement age

 

For individuals who work with heavy work, they can claim their early retirement if they have:

  • Contributed ten years of active operation within 20 years
  • Have 45 years of contributions
  • Completed your 60th year

 

Benefit

  • Continuous cash payment

 

Strategic benefits and extra services demonstrate the company’s appreciation for its workforce. Such incentives not only improve the work atmosphere but ideally also the climate between colleagues.With so many aspects to consider, we need to ensure that we comply with Austria’s labour laws and have added benefits so that employees feel appreciated and would likely be more productive and loyal to their employers.



Global People is a leading local employment solutions provider for national and international corporations and can advise and escort you in your next destination.

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Global People aims to assist its clients to fully focus on their development and success in their target destinations without having to worry about the regulation and compliance involved in the employment of their local and expat employees.

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