Hiring in Austria

A foreign company can hire in Austria through its own Austrian entity or an eligible direct foreign-employer arrangement, an appropriately authorised employer of record, or a genuinely independent contractor. Which route fits depends on how the work operates in practice. 4dev.com is a global contractor platform whose Contractor Platform lists Austria for contractor engagements; the independent contractor guide explains that route.

Three ways to hire in Austria

Direct employment, a regulated employer of record arrangement and independent contracting have different employers, costs and end points. Choose the route against the work the person will actually do.

Route	Legal employer	What you pay on top of salary	How you end it
Your own entity	Your Austrian entity; a foreign employer can use the limited reporting arrangement described below	22.51% selected employer social components, plus other levies and collective-agreement terms that can change the case cost	Employer notice: 6 weeks – 5 months, depending on tenure and the applicable termination rules
Employer of record	The provider where the arrangement is regulated labour leasing	Contractual provider terms and the employment costs that apply to the arrangement	The employment and provider-arrangement terms; Austrian employment rules still matter
Contractor	No employment legal employer where the service is genuinely independent	Contract terms and any registration or insurance consequences of the actual status	The service contract; there is no universal contractor notice period

The 22.51% covers selected employer social components. Family-fund and municipal levies, the province-dependent surcharge, Vienna-specific charges and collective-agreement terms can add to the cost; calculate it for the route, location and agreement at hand. An employer without an Austrian establishment may agree that the employee fulfils contribution-payment and reporting duties, provided the agreement and contract are submitted to ÖGK. That reporting option still requires the underlying direct-employment arrangement to be checked.

For an employer of record route, labour leasing is a regulated trade; an EEA lessor must make the ZKO notification before each cross-border assignment starts, and Austrian trade authorisations are recorded in GISA. For a contractor route, the contract label does not settle the status: the actual economic substance and conduct do, including whether the work is a defined result or whether the client directs and integrates the individual.

The Austrian labour market: what salary figures measure

Austria’s 2024 gross median covers full- and part-time employees and includes pro-rated holiday and Christmas remuneration. It gives an income reference, but cannot stand in for a 2026 ordinary monthly offer or a role-specific market rate. To model employer additions, use the applicable agreement, grade and payment structure.

Salary reference points

2024 median gross monthly employee income; full- and part-time, including pro-rated holiday and Christmas remuneration	€3,713 / month	Statistics Austria monthly income
2026 IT collective agreement, ST2 regular level minimum base monthly salary	€4,611	WKO: 2026 IT agreement
2026 IT collective agreement, ST2 experienced level minimum base monthly salary	€5,444	WKO: 2026 IT agreement

The two IT figures are collective-agreement minimum base salaries for employers and staff within that agreement’s scope, not Austrian IT market averages. Use the applicable agreement and classification to set a concrete offer; use the median only as a broader income reference.

Registering as an employer, step by step

Register the employee for social insurance before work starts. The other setup steps have no stated standard duration.

Step	What happens	Takes
Check the person’s work authorisation	EU/EEA and Swiss citizens have labour-market access; a third-country national needs an applicable permit or unrestricted access	Before the start date; no standard processing time stated
Request an employer contribution account	The first account number is requested once, free of charge, from the competent health insurance fund	Once, for the first employee; no standard duration stated
Set up the reporting route	Prepare the payroll and reporting process for the employment route and the confirmed work authorisation	Before employee registration; no standard duration stated
Register the employee	Register every employee with the competent health insurance carrier for social insurance	Before work begins

The first account supports employee registration. An Austrian entity follows that sequence before work starts.

A foreign employer without an Austrian establishment has a narrower option: it may agree that the employee fulfils contribution-payment and reporting duties, but must submit the agreement and contract to ÖGK; ÖGK’s foreign-employer guidance sets out that arrangement. It is a direct-employer reporting arrangement, not an employer of record route.

Hiring and onboarding

Before an Austrian employee starts, match the role to the applicable collective agreement and grade, confirm the person’s work authorisation, and complete the social-insurance registration.

Legal limits

The applicable collective agreement can set minimum pay, working time, holiday and Christmas payments, and dismissal protections, so the agreement and classification belong in the employment terms before the hire begins. A probationary period is limited to up to 1 month. Job advertisements must state the applicable collective or legal minimum pay and any willingness to pay above it.

Onboarding checklist

• Identify the applicable collective agreement and the role’s classification and grade.
• Confirm that the person has the labour-market access, permit or unrestricted access that applies to their circumstances.
• Provide the employment terms that reflect the applicable agreement and classification.
• Request an ÖGK employer contribution account if this is the first employee.
• Register the employee for social insurance before work begins.
• Keep the registration and payroll records for the engagement.

Who needs permission to work in Austria

EU and EEA citizens have free access to the Austrian labour market. Swiss citizens are treated the same way, so they do not need a labour-market authorisation to start work.

For a third-country national, an employer needs to establish the route that permits this particular employment. USP’s guidance on foreign employees identifies three possibilities: a combined residence and work permit that allows employment with that employer; unrestricted labour-market access, such as a Red-White-Red Card Plus or EU long-term residence; or an employment permit in addition to the relevant residence permit or visa, for example for students or seasonal workers.

Before confirming the start date, record whether the candidate has free access, unrestricted access, or a permit tied to the role and employer, and check that the proposed employment fits that status. A standard visa timeline, approval likelihood or general shortage-occupation shortcut cannot be assumed.

Minimum wage is set by the agreement

Austria has no uniform national rate: None — collective agreements; the relevant floor comes from the applicable collective agreement or, in some cases, a minimum-wage tariff.

Start with the employer’s applicable agreement, then identify the role’s classification and grade before setting the salary. The minimum stated in an advertisement must reflect the applicable collective or legal floor, while the offer may state willingness to pay above it; neither an advertisement nor an IT example creates a nationwide rate.

2026 IT collective agreement, ST2 regular level minimum base monthly salary	€4,611	WKO: 2026 IT agreement
2026 IT collective agreement, ST2 experienced level minimum base monthly salary	€5,444	WKO: 2026 IT agreement

These IT ST2 levels apply only within the IT agreement’s scope; another employer or role needs its own agreement and classification.

When a 13th or 14th payment is due

In Austria, holiday and Christmas payments are usually a collective-agreement question, not an unconditional statutory entitlement. Most collective agreements provide them, but an employee is entitled to a 13th or 14th payment only where the applicable agreement does.

State the ordinary monthly salary and, separately, any holiday or Christmas payment and its timing under the applicable agreement. The 2024 Statistics Austria median already includes pro-rated holiday and Christmas remuneration, so it is not an ordinary monthly salary figure from which to infer a 13- or 14-payment offer.

The 2026 ÖGK contribution guide treats special payments separately from ordinary monthly pay: their social-contribution ceiling is €13,860 for the calendar year. Housing and chamber contributions are generally not charged on special payments, while other contributions and surcharges can still apply. For that reason, annual payroll planning needs the applicable collective-agreement rule, the payment timing and the separate assessment base; it cannot be derived by multiplying a monthly figure by 12 or assuming a universal 14-month total.

Taxes and contributions

Employee income tax is progressive taxable-income tax at 0–55%; it is separate from the employer charges used to budget an Austrian hire.

Taxable income up to €13,539	0%	BMF: Steuertarif
Above €13,539 to €21,992	20%	BMF: Steuertarif
Above €21,992 to €36,458	30%	BMF: Steuertarif
Above €36,458 to €70,365	40%	BMF: Steuertarif
Above €70,365 to €104,859	48%	BMF: Steuertarif
Above €104,859 to €1m	50%	BMF: Steuertarif
Above €1m	55%	BMF: Steuertarif

The ordinary social-contribution ceiling is €6,930/month. The 22.51% selected employer baseline includes pension, health, unemployment and accident insurance, the standard housing contribution outside Vienna, the insolvency surcharge and the severance-fund contribution. It does not include the family equalisation fund, municipal tax where the employer has an Austrian municipal establishment, the province-dependent family-fund surcharge, or Vienna’s higher housing contribution and weekly employer charge.

What an employee actually costs you

The two scenarios below use an ordinary 2026 IT collective-agreement base month outside Vienna, for an employer with an Austrian municipal-tax establishment. Their 29.21% selected additions include the wider listed components, family fund and municipal tax; they remain partial base-month budgets rather than complete annual employment costs.

Scenario	Gross per ordinary base month	Selected employer additions	Selected total	Scope
IT ST2 regular	€4,611	€1,346.88 (29.21%)	€5,957.88	2026 IT agreement; outside Vienna; municipal-tax establishment
IT ST2 experienced	€5,444	€1,590.18 (29.21%)	€7,034.18	2026 IT agreement; outside Vienna; municipal-tax establishment

Both scenarios exclude the provincial DZ, Vienna housing and weekly charges, sector or age relief, 13th and 14th payments, voluntary benefits and provider fees. They are ordinary base-month budgets, so multiplying a selected total into a full-year cost would miss those items. The published €3,713 / month median is also unsuitable as a base: it mixes full- and part-time employees and includes pro-rated holiday and Christmas remuneration.

Working time and overtime

Ordinary working time is generally eight hours a day and 40 hours a week; higher limits apply only when overtime is included.

Including overtime, the usual maximum is 12 hours a day and 60 hours in an individual week. The weekly average, including overtime, is limited to 48 hours over a 17-week reference period. A 12-hour day or 60-hour week is a maximum, not an ordinary schedule. These limits do not specify a universal overtime premium.

Leave, sick pay and parental leave

For a five-day-week employee, Austria provides 25 days of paid annual leave, with separate rules for long service, illness and family leave.

Annual leave for a five-day week	25 days paid working days (five weeks)	oesterreich.gv.at: Urlaubsanspruch
Annual leave after more than 25 years with the same employer	30 paid working days (five-day week)	oesterreich.gv.at: Urlaubsanspruch
National statutory public holidays	13 days (statutory list)	USP: Ruhezeiten
Continued pay during qualifying illness or accident	Six weeks initially, subject to the qualifying condition	oesterreich.gv.at: Krankenstand
Maternity employment prohibition	Eight weeks before and after birth; twelve weeks after multiple, preterm or Caesarean births	USP: Schutzfrist
Parental leave	Until the child’s second birthday if shared; through the 22nd month if one parent takes it alone, subject to exceptions	USP: Elternkarenz und Elternteilzeit

Public holidays, sick-pay continuation, maternity protection and parental leave each have their own conditions. They cannot be added to annual leave as one unconditional allowance.

Termination: notice and payments

Employer notice runs from 6 weeks – 5 months, depending on completed service, and the effective date also needs to be checked.

First and second service years	Six weeks’ ordinary employer notice	USP: Kündigung
After two completed years	Two months’ ordinary employer notice	USP: Kündigung
After five completed years	Three months’ ordinary employer notice	USP: Kündigung
After 15 completed years	Four months’ ordinary employer notice	USP: Kündigung
After 25 completed years	Five months’ ordinary employer notice	USP: Kündigung

Employee ordinary notice is one month. An agreement can extend it up to six months if the employer’s period is not shorter. Employer dismissal normally takes effect at quarter-end, although the contract may allow the 15th or month-end and sectoral collective-agreement exceptions apply.

The employer contributes 1.53% of monthly remuneration, including special payments, to the employee severance fund. Austria’s new severance system funds entitlements through a BV-Kasse instead of a fixed dismissal lump sum, so the contribution is not a universal exit-cost figure or an automatic cash amount on termination.

Recent changes to Austrian payroll

The July–December 2026 employee premium and the announced 2027–2028 changes affect different pay and contribution rules.

• 1 July–31 December 2026 — enacted employee premium. An additional employee premium of up to €500 can be income-tax-free only under the specified wage-setting conditions. The measure does not establish a social-insurance exemption.
• 1 January 2027 — marginal-earnings limit. The monthly limit remains €551.10. This is relevant to freie Dienstnehmer under their separate insurance rules; it is not the SVS annual earnings threshold.
• 1 January 2027 — affected older employees. The employer family equalisation fund and unemployment contributions will also be levied for affected older employees. The published notice leaves some age and transition conditions unspecified.
• 1 January 2027 — social-insurance maximum base. The monthly maximum base receives an extraordinary €150 increase in addition to normal adjustment. The final 2027 ceiling is not specified.
• 1 January 2027 — low-earnings employee rules and telework allowance. The reduced employee unemployment contribution at low earnings is phased out, with a multi-year transition for existing employment; the tax- and contribution-free employee telework allowance ends. The two changes concern employees, not an independent-contractor expense rule.
• 1 January 2028 — further announced changes. The maximum base receives a further €50 extraordinary increase in addition to normal adjustment, and the employer family-fund contribution is scheduled to fall from 3.7% to 2.7%. Both changes are excluded from the 2026 model.

The voluntary SVS unemployment-insurance change is a separate choice for eligible self-employed people. It is not an ordinary employee or client payroll charge.

What a mistake costs and who pays

The monetary bands below apply to employer underpayment. Labour-leasing and contractor-classification exposure depends on the facts; no single fine covers every case.

Party	Risk	Amount
Employer	Underpayment of the floor due under law, regulation or collective agreement	Up to €50,000; up to €100,000 where withheld pay exceeds €50,000; up to €250,000 where it exceeds €100,000; up to €400,000 where that condition combines with intentional withholding of more than 40%
Labour lessor	Labour leasing is a regulated trade; an EEA cross-border assignment requires a ZKO notification before work starts, and authorisations are recorded in GISA	No amount established here
Company engaging an apparent contractor	The contract label does not decide status; actual economic substance and conduct distinguish a defined-work contract, free service and employment	No amount established here; a contractor invoice does not itself trigger an automatic fine

ÖGK checks pay for workers insured in Austria or normally working there, while the competence centre checks posted or leased workers. A provider contract may allocate responsibilities through its own terms; do not assume it transfers a party’s liability to the provider.

Questions people actually ask

Does Austria have a minimum wage per hour?

Austria has no uniform national minimum wage per hour. The applicable collective agreement, or in some cases a minimum-wage tariff, sets the relevant floor; the IT ST2 examples apply only within that agreement’s scope.

Does Austria pay a 14-month salary?

Holiday and Christmas payments are generally due only where the relevant collective agreement provides them, although most agreements do. Do not assume a 14-payment calendar until the applicable agreement and the offer terms have been checked.

Can a foreign company hire an Austrian employee without setting up an entity?

A foreign employer without an Austrian establishment may agree that the employee fulfils contribution-payment and reporting duties, provided the agreement and contract are submitted to ÖGK. This is a documented reporting arrangement, not a blanket rule for every direct-hire case.

What are salary tax rates in Austria?

The 2026 schedule is progressive taxable-income tax from 0–55%, rather than a flat rate on gross salary. It begins at 0% through €13,539 of taxable income and reaches 55% above €1m; the intervening bands apply progressively.

What is the most hours you can legally work?

Normal working time is generally eight hours a day and 40 hours a week. Including overtime, the usual maximum is 12 hours a day and 60 hours in a week, with a 48-hour weekly average over 17 weeks.

Is it hard to get a work visa in Austria?

EU/EEA and Swiss citizens have free access to the Austrian labour market. A third-country national needs an applicable permit or unrestricted access; no universal processing time or approval outcome can be assumed.

How much notice must an employer give?

Employer ordinary notice runs from 6 weeks – 5 months, from the first two years of service through more than 25 completed years. Employer dismissal normally takes effect at quarter-end, subject to the documented contractual and sectoral exceptions.

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