Hire, Recruit and Pay Talent in Austria

Mandatory benefits include health, pension, unemployment, accident, and long-term care insurance via the ÖGK. Employees are entitled to at least 25 working days of annual leave and statutory sick pay. Many employers also provide meal allowances, private health insurance, or other perks.

Austria has no statutory national minimum wage. Pay is determined by sector-specific Collective Bargaining Agreements (CBAs), covering about 98% of employees. PEOs and payroll providers ensure correct classification under applicable CBAs.

Probation periods generally last up to one month unless otherwise agreed. During probation, either party may terminate employment with short notice, in line with labour law and applicable CBAs.

The average gross monthly salary is approximately €4,500, varying by industry and experience. Tech, finance, and engineering roles generally pay above average, while administrative and hospitality roles may fall below.

Employers must comply with the Austrian Labour Code, CBAs, and statutory social contributions. Registration with the ÖGK and accurate payroll setup are mandatory. Proper contracts mitigate labour disputes and ensure compliance.

Austria offers opportunities in IT, energy, manufacturing, tourism, and life sciences. Foreign investment is supported by the Austrian Business Agency (ABA) and regional incentives. While company registration is straightforward, local expertise is valuable for navigating labour, tax, and social security compliance.

Payroll outsourcing providers manage gross-to-net salary calculations, progressive income tax (0–55%), social security contributions, and reporting to the ÖGK. They ensure compliance with CBAs, statutory leave entitlements (minimum 25 working days), and labour law requirements, minimising payroll errors, penalties, and administrative workload.

PEO services in Austria support companies with a registered local entity (GmbH or branch) by outsourcing HR functions such as payroll, benefits administration, onboarding, and compliance. The client remains the sole legal employer, while the PEO ensures correct filings with the Austrian Tax Office (Finanzamt) and ÖGK, manages 13th/14th month salaries under CBAs, and reduces administrative burden.

Independent contractors are common in Austria, especially in IT, consulting, and design. Correct classification is essential to avoid retroactive social contributions or fines under Austrian law. Contractors are responsible for their own social insurance via the SVS, while the client ensures tasks, working conditions, and contracts comply with labour regulations.

International companies can hire employees in Austria without setting up a local legal entity by partnering with an Employer of Record (EOR). The EOR acts as the legal employer under the Temporary Agency Work Act (AÜG), handling payroll, taxes, social security contributions, employment contracts, and labour law compliance, while the client company manages day-to-day operations. This enables rapid, compliant market entry.