EOR Service in Austria

Shraddha Saxena

Hire, Onboard and Pay Employees in Austria Quickly and Efficiently

Hiring in Austria at a glance

CURRENCY
Euro (€, EUR)
working hours
8 hours a day / 40 hours a week
public/bank holidays
13
capital
Vienna
language
German
date format
DD/MM/YYYY
remote workers
1.2M
tax year
January 1st to December 31st
minimum hourly salary
No minimum wage
CURRENCY
Euro (€, EUR)
public/bank holidays
13
capital
Vienna
language
German
date format
DD/MM/YYYY
tax year
January 1st to December 31st
payroll frequency
Monthly
GDP
$477.4 billion (2024 Estimate)
working hours
8 hours a day / 40 hours a week

Employer of Record in Austria

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.

Why use Austria EOR?

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.

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EOR Costs in Austria

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.

Factors Global Ranking Interpretation
Rule of law 7 Indicates effectiveness of law enforcement
Labour-employer cooperation 7 Indicates positive labor-employee relationships
Reading Maths, and Science 27 Indicates average scores in OECD's survey of 15-year old students
University Ranking 26 Indicates average QS rankings
Labour productivity per employee 14 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 72 Indicates findability of skilled talent
Workforce with tertiary education 36 Indicates % of workforce with PG degrees
Digital Skills 24 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots’ Recrew platform, you can discover amazing talent in Austria.

Why work in Austria?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

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.

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Employing in Austria

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax and other tax

Employer Payroll Contributions

Contribution Type Employer Rate Applicable Salary Cap
Health Insurance 3.78% Up to €6,060/month
Accident Insurance 1.10% Up to €6,060/month
Old-Age Pension Insurance 12.55% Up to €6,060/month
Unemployment Insurance 2.95% Up to €6,060/month
Insolvency Guarantee Fund Contribution 0.55% Up to €6,060/month
Family Burdens Equalization Levy 3.90% Up to €6,060/month
Municipal Tax 3.00% No cap
Chamber of Commerce Contribution 0.34% – 0.42% (Varies by province) No cap
Mandatory Severance Fund Contribution 1.53% No cap
Total Employer Cost 29.70% – 29.78%

Employee Payroll Contributions

Contribution Type Employee Contribution
Health Insurance 3.87%
Old-Age Pension Insurance 10.25%
Unemployment Insurance 2.95%
Total Employee Cost 17.07%

Employee Income Tax

Employee Income Tax Tax Rate
Up to 12,816.00 EUR annually 0.00%
12,816.00 EUR – 20,818.00 EUR annually 20.00%
20,818.00 EUR – 34,513.00 EUR annually 30.00%
34,513.00 EUR – 66,612.00 EUR annually 40.00%
66,612.00 EUR – 99,266.00 EUR annually 48.00%
99,266.00 EUR – 1,000,000.00 EUR annually 50.00%
1,000,001.00 EUR and over annually 55.00%

Separation

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.

Start Hiring in Austria today

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.

Grow your team 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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Experience Seamless Hiring in Austria?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Austria.

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