Austria Payroll Services

Q: How does payroll work in Austria?

In Austria, it is common for individuals to receive a 13th and 14th month payment. This is not an additional expense to the employer as the annual salary is divided into 14 equal segments. Employees receive one instalment each month with an additional segment in June and December.

Q: What are the general employment rules?

A typical working week in Austria is 40 hours. Employees who work more than 40 hours per week or 8 hours per day must be paid overtime, which cannot exceed a total of 50 hours per week or 10 hours per day. Maternity Leave in Austria is 16 weeks, which can start from 8 weeks prior to the due date. Maternity leave is based on the earnings of the 3 months prior to the leave date and is paid by Austrian Social Security.

Q: What about dismissing an employee?

Employment rights are strict in Austria and a process must be followed. Before taking any action, we recommend speaking to one of our local Employment Law Advisors. An employee is entitled to claim with the local Labor Courts if they deem the terms of their departure to be without warrant.

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Austria Payroll Services

Hire employees in Austria

Currency

Euro (EUR)

Population

8,902,600

Capital

Vienna

Official language(s)

German

Date format

dd/mm/yyyy

Fiscal year

1 January – 31 December

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Austria Payroll

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Austria HR

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Austria Payments

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Hire employees in Austria

Austria does not have a national minimum age set by law, but instead, minimum wages are determined by collective bargaining agreements (CBAs) within specific industries. The minimum wage that an employee is entitled to depends on varying factors such as professional training, job role and experience level.

Income tax rates for individuals in 2025 vary between 0% and 55% depending on gross annual income, although other factors may impact the total amount of tax that is paid.

In Austria, the public pension system requires a mandatory total contribution from gross earnings of 22.8%, with employees paying 10.25% and employers paying 12.55%.

The standard working hours in Austria are typically 8 hours per day and 40 hours per week, but this can be flexible and adjusted by way of collective bargaining agreements. Any hours worked beyond the standard limit of 40 hours are considered overtime. Employers must pay a 50% bonus for overtime hours, or time off in lieu can be agreed instead.

Employee’s leave consists of several types:

Statutory time off or paid leave, which is 5 weeks, or 25 working days, per year for full-time employees, increasing after long service.
Public holidays (there are 13 bank holidays per year in Austria)
Maternity, Paternity and Parental leave
Sick leave

Termination of an employment contract in Austria can occur in several ways:

Termination during the probationary period
By mutual agreement
Notice of termination
Dismissal
Resignation
Expiration of the employment contract

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Frequently Asked Questions

In Austria, it is common for individuals to receive a 13th and 14th month payment.  This is not an additional expense to the employer as the annual salary is divided into 14 equal segments. Employees receive one instalment each month with an additional segment in June and December.

A typical working week in Austria is 40 hours. Employees who work more than 40 hours per week or 8 hours per day must be paid overtime, which cannot exceed a total of 50 hours per week or 10 hours per day.

Maternity Leave in Austria is 16 weeks, which can start from 8 weeks prior to the due date. Maternity leave is based on the earnings of the 3 months prior to the leave date and is paid by Austrian Social Security.

Employment rights are strict in Austria and a process must be followed. Before taking any action, we recommend speaking to one of our local Employment Law Advisors. An employee is entitled to claim with the local Labor Courts if they deem the terms of their departure to be without warrant.