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Pay employees on-time in Euro (€).
Provide homogenous benefits - insurance and other employee perks.
Hire talent in Austria like it's your home base. No compliance risks. No extra effort needed.
Fixed pricing. No hidden costs.
An Employer of Record (EOR) in Austria offers a comprehensive solution for companies looking to expand their operations without establishing a legal entity. The EOR acts as the official employer, handling all employment-related tasks, including payroll, tax compliance, benefits administration, and HR management. By partnering with an EOR in Austria, companies can tap into the local talent pool while minimizing administrative burdens and compliance risks. The EOR handles employment contracts and statutory benefits and ensures compliance with Austrian labor laws. It provides seamless onboarding, payroll processing, and ongoing HR support. With an in-depth understanding of the local regulations and practices, the EOR helps businesses navigate the complexities of the Austrian employment landscape, allowing them to focus on their core operations and achieve their global expansion goals efficiently.
An EOR or PEO allows you to hire skilled talent in Austria without setting up a local entity or managing complex labor laws. This lets you focus on growth while ensuring compliance.
Austria has strong labor rights and a comprehensive social security system, with employers contributing 20.98% and employees 18.07% toward pensions, accident insurance, and other benefits. Its Sozialpartnerschaft system ensures ongoing collaboration between labor unions and employers, leading to frequent policy updates.
Keeping up with evolving labor laws, collective bargaining agreements, and compliance regulations can be challenging. Managing payroll, tax compliance, and employee classification requires specialized legal and HR expertise.
By partnering with Gloroots' Austria EOR, you simplify hiring, ensure compliance, and reduce legal risks. With payroll, compliance, and HR fully managed, you can expand your team in Austria without administrative burdens.
The cost of Austria EOR/PEO services in Austria may differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. Gloroots offers a fixed fee for EOR services. The pricing for Austria EOR/PEO services is a monthly fee per employee.
Key Metrics For Foreign Employers
Austria ranks 17th globally in the Talent Competitiveness Index (GTCI) owing to highly skilled workforce supported by futuristic educational policies and governmental initiatives. For instance, Austria ranks 7th in the GTCI index for R&D expenditure.
The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Austria.
Source: The Global Talent Competitiveness Index 2023
Through the Gloroots’ Recrew platform, you can discover amazing talent in Austria.
Employee misclassification occurs when an employer incorrectly labels a worker as an independent contractor to avoid employment laws and benefits, even if their role resembles that of a full-time employee.
A PEO/EOR in Austria helps prevent misclassification by providing compliant contracts, labor law adherence, accurate payroll processing, and comprehensive benefits.
Employment Contract
In Austria, unless specified otherwise, employment contracts are typically considered to be indefinite in duration. Although written employment contracts are not required by law, it is common practice for companies to prepare a written contract in German. This contract typically includes:
- Identification of both parties
- Start date of employment (and duration for temporary contracts)
- Work locations
- Clear job description
- Salary and other compensation in Euros
- Working hours
- Total number of holidays
- Notice periods for termination
- Reference to collective agreements
Fixed-term contracts are also valid. However, such employees will face limitations concerning pension schemes. Employees will be eligible for a pension plan only after four years of employment under a temporary contract.
Overtime
Work beyond 40 hours per week is paid at 150% of the regular rate, while Sundays and public holidays are compensated at 200%. Overtime may also be taken as time off in lieu at a 1:1.5 ratio.
Overtime can be part of the gross salary, but collective bargaining agreements may offer higher rates or additional time off.
Minimum Wage
Austria has no statutory minimum wage, but wage conditions must align with industry standards under the Wage and Social Dumping Act. Currently, the minimum benchmark is €1,700 per month for full-time employees.
Annual leaves
In Austria, employees receive five weeks (25 days) of annual leave after six months of employment. Those with less than six months accrue two days per month. After 25 years with the same employer, leave increases to six weeks (30 days). Up to 12 years of prior work experience or education can count toward this requirement, reducing the tenure needed to 13 years.
Leave accrues from the start date and can be carried over to the next year, though collective agreements may have different terms.
Maternity Leave
Maternity leave in Austria lasts 16 weeks; eight weeks before the due date and eight weeks after birth (12 weeks for C-sections or high-risk deliveries). During this period, mothers receive a weekly allowance from Social Security, based on their average earnings from the last three months. After 16 weeks, they can take unpaid leave until the child turns two, receiving childcare pay under the Child Care Payment Act.
Paternity Leave
Fathers in Austria can take one month of unpaid paternity leave anytime before their child turns two. Known as “Daddy Month,” this leave requires the father to notify their employer at least three months before the estimated birth date.
Sick Leaves
When employees in Austria are absent from work due to illness or injury, employers are required to provide paid sick leaves . The duration of sick leave and the corresponding sick pay amount depend on the employee's years of service.
The following table illustrates the sick leave duration and the percentage of normal wages provided:
If an employee has a long and serious illness, they may be granted an additional four weeks of sick leave. During this time, if the employee is unable to work, Social Security will cover 50% of their regular wage. If the employee's sick leave goes beyond the specified duration, Social Security will cover the entire amount of sick pay.
Income tax and other tax
Employer Payroll Contributions
Employee Payroll Contributions
Employee Income Tax
Termination Process
In Austria, employers typically have several choices when it comes to terminating an employment agreement:
1. Termination by mutual agreement: Employers and employees can mutually agree to terminate the employment contract.
2. Unilateral termination: Employers have the authority to unilaterally terminate the employment agreement without the agreement of the employee.
3. Resignation by the employee: Employees can voluntarily resign and terminate the employment agreement at the end of their contract.
4. Urgent dismissal of the employee: Employers may choose to dismiss an employee urgently, typically in cases of serious misconduct such as theft or other significant violations.
Notice Period
In Austria, the notice period depends on the length of employment, starting at 6 weeks for employees with up to 2 years of service and increasing to 5 months for those with over 25 years. It can be extended by up to six months through a contract, provided both employer and employee follow the same terms.
Severance Pay
In Austria, unless an employee is dismissed for gross misconduct or voluntarily terminates their employment, they are entitled to receive severance pay. This regulation applies to all employment contracts issued after 2003.
Severance pay in Austria is managed through an employee provision fund. Once the employee's probation period ends, the employer is required to contribute 1.53% of the employee's monthly salary to this fund. The accumulated amount in the fund is then disbursed to the employee as severance pay.
Probation Periods
In Austria, a one-month probationary period is common in Austria. During this period, either the employer or the employee can terminate the contract without providing an explanation.
Additionally, before giving an employee a notice of dismissal, the employer is required to give at least one week's notice to the work council. If requested by the work council, the employer must engage in consultation with them before proceeding with the dismissal.
When it comes to global hiring, ensuring compliance can be a complex undertaking. Employers must navigate through employment laws, payroll procedures, DE&I compliance, data protection regulations, and other legal requirements to ensure a smooth and legally compliant onboarding process. Setting up the necessary infrastructure and staying updated with the ever-evolving compliance landscape can add significant complexity to the hiring process.
At Gloroots, we are here to simplify this journey for you. Our comprehensive solutions offer a centralized platform to efficiently manage all aspects of hiring in Austria. With our in-house experts, you can confidently navigate cross-border employment and payroll compliance risks. We provide support in generating employment contracts, ensuring timely payments, and offering compliant benefits, enabling you to focus on screening and selecting the right talent.
Our promise is to provide you and your employees with a seamless global employment experience.
Contact our experts today to kickstart your global hiring campaign in Austria.

Employers in Austria must have a local legal organization and utilize local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Austria makes compliance with employment laws demanding.
With Gloroots' global Employer of Record (EoR) service, you can let Gloroots handle the heavy lifting of payroll, tax, benefits, and compliance, allowing you to concentrate on what matters most: your employees and company growth.
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