Austria is an economy that has consistently ranked in the top 20 richest countries with regards to its GDP per capita with a high standard of living and 20th by ranking with regards to the Human Development Index. With a high per capita GDP, the country has a highly industrialized economy and a well-developed social market economy with tourism, IT, and finance industries accounting for most of its GDP.
You can refer here to the top-ranking universities in Austria to hire from.
The table below shows the average salaries of some jobs in Austria. Please refer to SalaryExplorer for more information.
The employer payroll tax is calculated as follows:
The employee payroll tax is calculated as follows:
Income Tax in Austria is calculated as follows:
The employee taxes in Austria can be found here.
The average salary per month is 3,790 EUR per month with 960 EUR being the lowest wage and 16,900 EUR as the highest average. This is bound to differ depending on the profession, industry, and location.
The employee must be paid monthly.
13th month salary
Their 13th month salary is normally paid at the end of June and the 14th month salary is paid at the end of November.
Employee Stock Option
Employee stock options are not common in small and medium-sized companies in Austria, however, the share plans are relatively more common among larger businesses because of the favorable tax and social security regulations under the Capital Market Offensive Act 2001. tax advantages however only apply to options that are non-transferable and granted before a certain period.
Further details on employee stock options in Austria can be found in the report here.
The standard number of working hours in Austria is 8 hours a day or 40 hours a week.
In terms of overtime, overtime will be paid at a rate of 50% premium for work. Hours in excess of those stated in the employment contract would be paid at a rate of 125 of the employee’s salary. Overtime on Sundays, public holidays and between 12:00am to 7:00am will be compensated at a rate of 200%.
Number of public holidays is 13 days. The list of holidays can be found here.
All employees are entitled to 30 days of vacation annually. However, if you have for over 25 years, you are entitled to 36 days of vacation.
Paid sick leave in Austria is given for a period of upto 12 weeks during an illness or following an injury.
Female employees are entitled to 8 weeks preceding the time of delivery and 8 weeks following the childbirth. Employees receive pay from the social insurance system.
Paternity leave is unpaid and given until the child has reached the age of 2 years.
Termination in Austria can be done on a mutual consent basis.There can also be dismissal of the employee by the employer on the grounds of a justified reason.
Notice period depends on the duration of the employment:
Employers must pay severance pay at the rate of 1.53% of their gross monthly salary.
The probation labour contract is one month.
It is mandatory for employers to provide insurance benefits to their employees. All employees get a social security number that grants them access to social insurance benefits.
Social insurance covers all aspect that includes sickness, old age, incapacity for work, maternity, nursing care, survivors' pensions, and unemployment.
It also covers health insurance that provides free medical treatment for the employees and their dependents. Other insurances that are covered include accident insurance, pension insurance, and unemployment insurance.
Further details about benefits can be found here.
The standard VAT rate in Austria is 20%