Powering Payroll, Compliance & Workforce Management in Austria

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Aerial view of Innsbruck, Austria, highlighting the city’s financial district, business infrastructure, and economic centre in the Alps.

Austria at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Austria
Work Permits & Visas
  • Non-EU/EEA Nationals: Must obtain a work permit and residence permit to work in Austria. Common pathways include Red-White-Red Card, Red-White-Red Card Plus, and EU Blue Card for highly qualified workers.
  • Residence Requirements: Work permit alone does not confer residency; separate residence permit application is needed, typically tied to employment conditions and salary thresholds.
  • EU/EEA/Swiss Nationals: Do not require a work permit due to freedom of movement.
  • Seasonal/Other Permits: Other options include Seasonal Worker Permits and specific visas for jobseekers with later conversion to work permit.
Payroll
  • Cycle: Typically monthly, with salaries paid by the last working day of the month.
  • Withholding: Employers withhold Lohnsteuer (income tax) and social security contributions and remit them monthly via FinanzOnline by the 15th of the following month.
  • Employer Payroll Levies: Family Burden Equalization (~3.7–3.9%), municipal payroll tax (~3%), Chamber contributions (0.32–0.40%), and a public transport levy in certain cities.
  • Social Security Contributions:
    • Employer: ~20–22% of gross (health, pension, accident, unemployment, insolvency), plus additional levies cited above.
    • Employee: ~17–18% of gross income.
Employment Contracts
  • Must be in writing (often in German) and include mandatory elements like job description, working hours, salary, termination notice, and applicable collective agreements.
  • Working Hours: Standard 40 hours/week; overtime subject to premium pay or compensatory time.
  • Probation: Typical probation periods (e.g., 1–3 months) may be agreed by contract.
  • Termination: Notice periods vary by tenure and are strictly regulated; severance may be statutory or under collective agreements.
Employee Benefits
  • Annual Leave: Minimum statutory leave is 5 weeks per year; collective agreements often provide more.
  • Public Holidays: National holidays with paid leave.
  • 13th & 14th Salaries: Common additional bonus payments under collective or statutory rules, often taxed preferentially.
  • Sick & Family Leave: Entitlements to sick pay, parental leave, and family support are structured under social law and collective agreements.
Tax Overview
  • Tax Residency: Austrian tax residents are taxed on worldwide income; non-residents only on Austrian-sourced income.
  • Double Tax Treaties: Austria has wide DTA coverage that can mitigate dual taxation.
  • Reporting: Employers file monthly payroll and social security returns; employees may need annual returns depending on deductions and other income.
Personal Income Tax
Annual Taxable Income (EUR) Tax Rate
Up to €13,308 0%
€13,309 – €21,617 20%
€21,618 – €35,836 30%
€35,837 – €69,166 40%
€69,167 – €103,072 48%
€103,073 – €1,000,000 50%
Above €1,000,000 55%

Full Country Guide

How We Help You with Payroll & Compliance in Ghana

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Austria

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Austria

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Austria
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Compliance

Stay ahead of legal changes. We ensure your payroll and employment practices remain fully compliant with

Austria

's laws

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Whether you need Payroll Outsourcing, Employer of Record services, or advanced Payroll Software, our experts are here to help you find the right solution. Contact us today for support with payroll, compliance, and hiring in

Austria