Austria offers a skilled, German-speaking workforce with 14 salary payments and collective-agreement pay floors. All-in employer cost runs around 1.3x the gross salary. Here is what to know before your first Austrian hire.
Employment runs under a layered system of statutes and binding collective agreements (Kollektivvertrag) that set minimum pay and conditions by sector. Salaries are usually across 14 payments, with favourably taxed holiday and Christmas bonuses.
Employer costs sit around 29-30%, combining social-security contributions with municipal tax and family-fund levies.
Employers pay 1.53% of pay into the 'Abfertigung neu' severance fund, which replaces the old lump-sum severance for staff who started after 2002.
Employees pay their social-security share plus income tax on a progressive scale, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Austrian employment contract, payroll across 14 payments, social security, and benefits, handled. One invoice, flat $499 per month.