Austria at a glance
Taxes in Austria
Employer Contributions
Total employer tax: 21%–23%
| Contribution Type | Rate |
|---|---|
| Health insurance (sickness) | 3.78% |
| Unemployment insurance | 2.95% |
| Pension | 12.55% |
| Accident insurance | 1.10% |
| Miscellaneous | 0.60% |
Total employer tax: 21%–23%
| Contribution Type | Rate |
|---|---|
| Health insurance (sickness) | 3.78% |
| Unemployment insurance | 2.95% |
| Pension | 12.55% |
| Accident insurance | 1.10% |
| Miscellaneous | 0.60% |
Income tax: 0%–55% | Social security: ~18%
| Contribution Type | Rate |
|---|---|
| Health insurance (sickness) | 3.87% |
| Unemployment insurance | 2.95% |
| Pension | 10.25% |
| Accident insurance | 10.00% |
| Miscellaneous | 1.00% |
| Gross Income | Tax Rate |
|---|---|
| €13,539 and below | 0% |
| €13,540 – €21,992 | 20% |
| €21,993 – €36,458 | 30% |
| €36,459 – €70,365 | 40% |
| €70,366 – €104,859 | 48% |
| €104,860 – €1,000,000 | 50% |
| Over €1,000,000 | 55% |
Employer of Record in Austria
How Remote& EOR Works
Remote& acts as the legal employer of your Austrian workers, managing all compliance requirements — payroll, tax filings, statutory benefits, and employment contracts — while you run the day-to-day work.
| Party | Role |
|---|---|
| Your Company | Directs work, manages performance, allocates tasks |
| Remote& | Runs payroll, files taxes, administers benefits, ensures legal compliance |
| Employee | Works for your company under a locally compliant Austrian contract |
Ask Remi:
"Hire a UX designer in Austria — €4,500/month, starting September 1" Remi handles everything: contract, compliance, payroll setup, and benefits enrollment.
Benefits in Austria
Public Health Insurance: All employees are automatically enrolled in Austria's statutory health insurance system (ÖGK — Österreichische Gesundheitskasse), covering:
- GP and specialist visits
- Public hospital stays
- Prescription medications (with co-pay)
- Maternity care
- Mental health services
- Preventive check-ups
Social Security: Mandatory contributions from both employer and employee cover health, pension, unemployment, and accident insurance.
13th and 14th Month Salary: Austrian employees are typically entitled to two additional salary payments per year (holiday pay and Christmas bonus).
- Private health insurance top-up
- Meal vouchers or lunch allowance
- Transport allowance (Pendlerpauschale)
- Bonuses
- Supplementary pension plans
- Flexible and remote working
- Additional leave
- Training and professional development
- Wellness and gym benefits
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 25 working days (5 weeks); increases to 30 days after 25 years of service |
| Sick Leave | Up to 26 weeks |
| Maternity Leave | 16 weeks paid (via Austrian health insurance) |
| Paternity Leave | 1 month unpaid (until child turns 2) |
Employment conditions
Probation
Statutory probation is up to 1 month. During probation, either party can end the employment without notice or specific justification.
Employee Rights & Protections
Austrian workers are entitled to: a Dienstzettel (written statement of employment terms), whistleblower protection, GDPR data privacy rights, anti-discrimination and equal treatment, harassment protection, pay equity, paid annual leave, 13th/14th month salary, dismissal protection, and pay transparency.
Payments
End of employment in Austria
Employment may be ended by either party subject to statutory notice periods, contractual terms, or applicable collective agreements. Immediate termination without notice is permitted only in cases of serious misconduct. Employees may challenge dismissals they consider unfair through Austrian labour courts.
Frequently asked questions
Four paths: run payroll from your HQ for short-term work; engage contractors for project-based multi-client work; establish a local Austrian entity (time and cost intensive); or use Remote& as Employer of Record for fast, compliant hiring without a local company.