Employing in Austria

Austria's strategic location in the heart of Europe and its stable economy make it an appealing destination for businesses looking to expand. The country's robust infrastructure, skilled workforce, and strong focus on innovation create a fertile ground for growth and development. 

An employer of record, sometimes known as an international PEO can help you quickly hire and onboard workers in Austria – often with just two weeks’ notice. Establishing your own local entity without risk and saving costs, this type of service makes an EOR in Austria worth checking out!

We handle all the details to support your employees and hiring processes in Austria – from benefits and payroll to risk mitigation and compliance – while you retain complete control of your supported employees. We make operating in Austria hassle-free giving you the ability to focus on running and growing your business.


Our Expertise

Managing a global workforce in Austria

Austria's employment landscape is governed by strict labour and social security regulations, emphasising employee rights and welfare. TopSource Worldwide's expertise in Austrian labour laws ensures that businesses can effectively manage their workforce while maintaining compliance with local standards. Our tailored HR, payroll, and HR solutions help businesses focus on their core activities, enabling seamless operations in Austria's dynamic market.


Extensive expertise

Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.


Entity-free employment

Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.


Payroll without hassle

Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success. 


Always-on support

Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.


Global Employee Cost Calculator

Estimate the cost of your new hire with our calculator. Simply enter their location and salary information in to this handy tool to see what will be spent in employment costs each month.

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Personalised Employer of Record services in Austria

TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Austria. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Austrian-based employees.

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End-to-end Austria payroll services

Looking to expand into Austria? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Austria expansion initiatives.

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Global entity management

Venturing into the Austrian market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.

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Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.

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Global EOR services

Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.

Global Expansion Simplified

How to do business in Austria

Entering the Austrian market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.

TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Austria.


Austria Insights

Key insights into Austria's landscape


VAT rates: Austria has a standard VAT rate of 20%, with reduced rates of 13% and 10% for specific goods and services.


Ease of Doing Business rank: Austria ranks 23rd in the World Bank's Ease of Doing Business Index, reflecting a highly favourable business environment.


Consumer Confidence Index: As of 2022, Austria's Consumer Confidence Index was 94.1, indicating stable economic sentiment.


Employee maternity/paternity leave:Maternity leave is 16 weeks, and paternity leave is 2 weeks, supporting work-life balance for new parents.


Employee termination period: Standard notice for termination is typically 1 to 3 months, depending on employment contract terms and duration.


Employee salary pay date: Wages are generally paid monthly, with specific pay dates outlined in employment contracts and subject to labour laws.


Bank holidays: Austria observes national holidays, including New Year's Day, National Day, and Christmas, with a total of 13 public holidays in a year.

Statutory Benefits


In Austria, there is a legal requirement to pay two additional months’ salary.

  • Month 13 is paid out in June.
  • Month 14 is paid out in December.

Please be mindful of this when negotiating terms with new candidates. Clients can determine that the salary on offer includes these statutory payments which will be reflected in the contract of employment but this should be made known to your candidate in the pre-hiring stage.

We invoice for these additional salaries monthly and funds are accrued to be paid out at the appropriate time.

Accident insurance

Accident insurance covers accidents at work and occupational disease. AUVA (Allgemeine Unfallversicherungsanstalt — the Austrian Workers’ Compensation Board) is the social insurance for occupational risks. Financed mainly by contributions paid by employers, its legal duties are:

  • Prevention of occupational accidents and diseases.
  • Occupational medical care.
  • First aid for occupational accidents, post-traumatic treatment, rehabilitation, financial compensation and research.

The accident insurance scheme covers employees while at work or travelling to or from work. Cover includes measures to prevent accidents as well as benefits in the event of injury. All persons employed under an employment contract are subject to compulsory accident insurance.

Social security

Social insurance in Austria is composed of health, pension and accident insurance and typically covers:

  • Health (sickness and long-term care).
  • Incapacity (benefits in respect of accidents at work and invalidity).
  • Family benefits (maternity/paternity).
  • Unemployment.
  • Pension (old-age pension and benefits/survivor’s benefits).
  • Social need.

Employers are responsible for registering their employees with the relevant social insurance office and may be registered with different insurance institutions depending on their profession and the province they are working in. Social insurance contributions are deducted by the employer and paid over to the local tax office.

Other Provisions

Working hours

According to the Austrian Working Time Act (Arbeitszeitgesetz), the regular working hours are eight hours per day (40 hours per week).


It should be noted that, in principle, overtime is payable in Austria when the regular working hours are exceeded (per day or per week).

The right to overtime in Austria is stipulated by law as mandatory and cannot be altered or waived. It is possible to include an all-encompassing salary (included as gross pay element) to compensate for overtime. It is important to note, however, that such all-in clauses may not deteriorate the employee’s position as compared to a situation in which a basic salary plus additional payments for overtime are paid.

Based on the employee’s job role and proposed salary, our Austrian legal team can determine the extent of any additional gross overpay required to be stipulated in the employment contract.

Severance Pay Fund (Mitarbeiterervorsorgekasse)

New severance pay provisions were introduced from 1 January 2003 in accordance with the Company Employees Provision Act (BMSVG) for new employment relationships. The fund does not pay out if the employee terminates the contract.

An employee is entitled to freely dispose of any accrued severance pay if certain provisions are met:

  • At least three year’s funds have been invested into NEW severance pay.
  • The most recent employment contract has been terminated by the employer, by mutual consent, by dismissal through no fault of the employee, by legitimate premature resignation by the employee or by notice given by the employee during part-time employment according to Maternity Protection Act or Father’s Leave Act.

From the second month of employment onwards, an employer pays 1.53 % of the gross salary in contributions to the health insurance fund, which in turn passes the contributions onto a staff provision fund (Vorsorgekasse).

The staff provision fund invests the contributions and credits them including the returns on investment (after deduction of administration costs) to the individual’s personal severance pay account. Once a year, the fund should send a statement to the employee about the current status of the fund. A legally prescribed capital guarantee ensures that, regardless of the results of the investment, the final severance pay sum cannot be lower than the amount paid in by the employer.

TopSource Worldwide works with the staff provision fund BONUS VORSORGEKASSE.

Holiday Entitlement

Paid time off

Employees are entitled to a minimum of five weeks in each year of work (25 days).

When calculating leave according to working days (incl. Saturdays), the entitlement is 30 days leave each year.

After 25 years of service this entitlement increases to six weeks.

Public holidays

1 January
New Year’s Day (Neujahr)
6 January
Epiphany (Heilige Drei Könige)
17 April
Easter Monday (Ostermontag)
1 May
National Holiday (Staatsfeiertag)
26 May
Ascension Day (Christi Himmelfahrt)
5 June
White Monday (Pfingstmontag)
6 June
Corpus Christi (Fronleichnam)
16 June
Assumption Day (Mariä Himmelfahrt)
26 October
National Day (Nationalfeiertag)
1 November
All Saints’ Day (Allerheiligen)
8 December
Immaculate Conception Day (Mariä Empfängnis)
25 December
Christmas Day (Christtag)
26 December
St. Stephen’s Day/Boxing Day (Stefanitag)

Notice periods

Notice periods are governed by statute according to the length of service.

  • One to two years’ service — six weeks
  • Two to five years’ service — two months
  • Five to 15 years’ service — three months
  • 15 to 25 years’ service — four months
  • From 25 years’ service — five months

Sick leave

Employers in Austria must continue to pay employees suffering from sickness, an industrial accident, or an occupational illness, as well as employees going through rest cure or convalescence leave. The length of paid leave depends on the employee’s seniority and whether the employee is a white-collar or blue-collar worker. A medical certificate may be required.

Once an employer has fulfilled its sick-pay obligations, health insurance providers are responsible for paying an employee.


Hear from our clients about our EOR solutions in Austria

"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."

Annette van Duijnhoven

”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."

Praveen Lihinar

”TopSource Worldwide has a detailed and methodical onboarding process that made it easy for us to get set up and running with our UK employees. They were able to take the worry out of trying to comply with all local laws and regulations. Because they have this knowledge we do not have to research on our own and hope we are in compliance. This has saved us hours of time and gives both the company and employees a sense of security."

Client based in Ft Worth, Texas, USA

Employ and pay anywhere

Specialising in multi-country payroll solutions

TopSource Worldwide offers comprehensive payroll outsourcing services, ensuring seamless and accurate management of your organisation's payroll functions. With cutting-edge technology and a team of experienced professionals, we handle payroll processing, tax compliance, and regulatory requirements with precision.

Calculate Your Employer of Record Taxes in Seconds

Employment Cost Calculator in Austria

Our Employment Cost Calculator simplifies complex tax calculations for global businesses. Accurately assess tax obligations, ensuring compliance with local regulations. Streamline payroll management effortlessly with our user-friendly tool, providing transparency and efficiency in international workforce taxation.

In addition to calculating your EOR taxes, our calculator can also help you:

  • Understand the different types of EOR taxes
  • Stay up-to-date on the latest changes to EOR tax regulations
  • Avoid penalties for non-compliance
Our author

Mark Robbins

Global Sales Director

Mark is the Sales Director at Topsource Worldwide. He has been a pioneering figure in the global expansion space since 2013. He is the first salesperson to sell EOR services in Europe, a feat he accomplished in 2013. 

Published 2023-11-14 00:00:00

Updated 2023-11-15 00:00:00

Adrian Cooney

Reviewed by:

Adrian Cooney

Adrian Cooney

Fact checked by:

Adrian Cooney

Employer of Record FAQ

Frequently Asked Questions about Austrian employment solutions

What is an Employer of Record in Austria?

An Employer of Record (EOR) is a professional services provider that assumes the responsibility of being the legal employer for a company's workforce in Austria. This entails managing tasks such as payroll processing, tax withholding, benefits administration, and ensuring compliance with local labour laws and regulations.

How do global employment services work?

Global employment services operate as a comprehensive solution for businesses seeking to expand their workforce across borders. These services, often provided by Employer of Record (EOR) companies like TopSource Worldwide, streamline the complexities of international employment.

What are the benefits of working with an Employer of Record in Austria?

Employer of Record companies assume the legal responsibilities associated with employment, alleviating the burden of compliance, payroll, and HR management in Austria. This allows companies to expand globally without the complexities of establishing legal entities in each location.

What is the difference between EOR & PEO?

An EOR acts as the legal employer, handling tasks like payroll, tax compliance, and benefits administration. This allows companies to expand internationally without establishing legal entities. On the other hand, a PEO shares employer responsibilities with the client company, often co-employing workers.

How are employer payroll taxes calculated in Austria?

Calculating employer payroll taxes involves understanding the various taxes associated with employing workers and complying with tax regulations in Austria. Key components include federal and state income taxes, Social Security, Medicare, and unemployment taxes.

What global employment solutions does TopSource offer?

TopSource Worldwide facilitates hassle-free global expansion by acting as the legal employer, handling payroll, tax obligations, and HR responsibilities. With expertise in global entity management, TopSource assists businesses in navigating the intricacies of legal structures across borders.

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