Employer of record services in Austria

Yes. We manage employer social security contributions of roughly 21% of gross salary, along with progressive income tax withholding, and the mandatory ‘Abfertigung neu’ severance system, under which employers contribute 1.53% of salary monthly into an employee’s individual severance fund. Austrian law also mandates 13th and 14th salary payments (holiday and Christmas remuneration), which we build into payroll as standard, not optional, pay.

Beyond the mandatory 13th and 14th salary and Abfertigung neu contributions, competitive Austrian employers add meal vouchers, supplementary health insurance, and public transport subsidies (the ‘Klimaticket’ is increasingly common as an employer-provided perk). Austria’s strong collective bargaining coverage also means many sector minimums are already set above general statutory levels.

Notice periods differ by employee category: white-collar employees (Angestellte) generally get statutory notice scaling from six weeks to five months by tenure, while blue-collar rules are often set by the applicable collective agreement. Abfertigung neu severance contributions accrue throughout employment and become accessible to the employee at termination regardless of cause, which is distinct from most European severance systems.

An EOR can typically onboard within one to two weeks for social security registration and contract issuance, compared with the several weeks needed to incorporate an Austrian entity (such as a GmbH) and register with the Austrian tax office and social security authority (ÖGK).

Austria’s 13th/14th salary requirement and the Abfertigung neu severance fund system require ongoing payroll administration that’s easy to get wrong without local expertise. An EOR manages that compliance and carries the liability, which is typically the more efficient route for an initial Austrian hire.