Have you been thinking about adding Austrians to your business’s team? Now could very well be the prime time to do so. Professionals in the country are usually conservative, punctual, and no stranger to hard work. So, your next best hire may reside here. 

However, jumping into the hiring process without diving deeply into the employee benefits in Austria would be a huge mistake. Austria labor laws go into substantial detail regarding how employees should be treated and the obligations employers must fulfill in the working relationship. Employers (foreign or otherwise) that do not handle their part may run into legal issues and have trouble finding high-quality candidates. 

Thankfully, you don’t have to worry about that. In this guide, we’ll focus on employee benefits in Austria, Austrian employment law, building benefits packages, and more. By the end, you’ll have foundational information and actionable insights to draw upon throughout the recruitment and hiring processes. 

Austrian Employment Law

In Austria, there are tons of laws that govern the employer/employee relationship, and knowing about them can be helpful as you’re building your benefit plan. For starters, there are dozens of laws and directives pertaining to employment in Austria, and each is centered on one or more areas of employment. There’s no single piece of legislation that holds all the information you need for the purpose of hiring abroad from the country – there are many. 

With that in mind, the main sources of truth to be on the lookout for are: 

  • Governmental sources and laws
  • Lawyer websites covering Austrian laws

If you stick with legal information from those sources, you likely won’t be steered wrong. For the purpose of this article, we’ll use a combination of governmental and lawyer-based sources to give you a clear picture of employee benefits in Austria. 

Mandatory Employee Benefits in Austria 

There are several mandatory benefits that employees should be sure to offer to their Austrian employees. They are intended to protect employees from mistreatment and help employers cultivate a fair and supportive work environment. We’ll go over them below.

Social Security Contributions

Austrian employees are entitled to social security benefits to cover their pension insurance, health insurance, accident insurance, unemployment insurance, and more. And per legal mandates, the employer should contribute to these accounts on an ongoing basis (12.55% of monthly covered payroll), and so should the employee (10.25% of their monthly covered earnings). The employer will withhold the employee’s contribution portion and submit it to the program. 

*In 2024, only employees who make at least $573 per month get the social security option. 

Paid Annual Leave

Per Austrian labor laws, annual leave is set at 30 days per year of work. There are a few nuances to be aware of here, and we’ve illustrated them in this table:

Length of EmploymentLength of Annual Leave
6 months or lessCalculated in proportion to time worked
Over 1 year but less than 25 years30 days
25 years +6 weeks

The leave must be planned and approved by the employer. If the employee is sick for over 3 days during their leave, the leave won’t count. The employee should tell the employer about the illness right after the third day of absence and bring a note from a medical professional. 

Sick Leave

When an employee falls ill and can’t work, they are entitled to sick leave for up to 6-12 weeks. Before this benefit can be granted, the employee has to inform the employer that they aren’t able to continue working. As a worker’s seniority increases, so does the sick leave entitlement – up to 12 weeks. 

The worker doesn’t get sick leave if the illness or injury was caused on purpose or was due to their own negligence. 

Maternity Leave

Maternity leave for expectant mothers in Austria is set at 16 weeks total, with eight weeks taken before the due date and eight weeks taken after the birth. This leave is paid monthly in arrears in the amount of the worker’s normal pay rate. 

Parental Leave

Parental leave should be provided to parents until the child reaches the age of 24 months. To receive this leave allowance, the employee and the child must live in the same residence. The minimum leave allowance is 2 months. 

Public Holidays

On public holidays, Austrian employees get paid time off. The public holidays are shown below:

  • 1st January – New Year’s Day
  • 6th January- Epiphany
  • 6th April (Date Varies) – Easter Monday
  • 1st May – State Holiday
  • 14th May (Date Varies) – Ascension Day
  • 25th May (Date Varies) – Whit Monday
  • 4th June (Date Varies) – Corpus Christi
  • 15th August -Assumption Day
  • 26th October – Austrian National Day
  • 1st November – All Saints Day
  • 8th December – Immaculate Conception
  • 25th December – Christmas Day
  • 26th December – Boxing Day/ St. Stephen’s Day

Depending on where your employees reside, the holidays may vary a bit from the above. When you’re ready to hire an Austrian worker, check with local government entities for a more precise paid holiday list. 

Severance Pay

Employers should be prepared to offer severance pay to Austrian workers who qualify. The payment isn’t made in a lump sum at the end of employment – it’s paid over time to a fund. There are very specific requirements employees must meet to qualify for severance pay.

Read more about this benefit on the Austrian government website. 

Accident Insurance

Employers should always invest in statutory accident insurance to cover Austrian employees in the case of work-related accidents and diseases. This coverage is only paid by the employer – not the employee. On average, this coverage costs around 1.2% of the employee’s gross salary. 

Christmas and Vacation Bonuses

The Christmas bonus (13th-month salary) and vacation bonus (14th-month salary) are a customary form of remuneration for workers in Austria. Each of these bonuses should be equal to a month of the employee’s salary. Though this isn’t technically mandatory, it’s customary for employers to offer this benefit. 

Supplementary Employee Benefits in Austria

Supplementary employee benefits can make it much easier to find a good candidate; one extra benefit can drive a candidate to say “yes” to your job offer. At the same time, you don’t have to offer supplementary benefits if it’s not feasible or desirable for your company. If you do, though, here are some options to consider: 

  • Company car and gas stipend to ease transportation and auto repair costs. 
  • Health, vision, and/or dental insurance to reduce the gap between your employees and the care they need. 
  • Increased leave durations, over and above what the government requires. 
  • Home office stipend for employees who are permitted to work from home or on a hybrid work schedule. 
  • Gym membership allowances. 
  • Travel stipends. 
  • Support for employees who have children (childcare stipends, on-site childcare services). 
  • Extra contributions to pensions. 
  • More holiday pay than is required by law. 

How to Create an Effective Employee Benefit Plan for Austrian Workers

Creating an effective employee benefit plan is difficult without a plan. And we can help with that. Read on for a quick roadmap for employers to use during the benefit package creation process. 

  • Talk to a lawyer about any uncertainties surrounding Austrian labor laws. The legalese surrounding employment law can very quickly get convoluted. So, it can be helpful to have access to a legal professional. It’s so important to be clear on the laws so you can comply with them. 
  • Note the mandatory benefits that apply to Austrian employees. Don’t leave any out, as that could lead to penalties, reputation damage, and more. 
  • Note all the supplementary benefits that you’re interested in offering. Take some time to weigh your options thoroughly, favoring extra perks you feel will resonate with your future candidates and hires. 
  • Create a document and add all of the benefit information (mandatory and supplemental). Then, include information like benefit prerequisites, timelines for benefits to start, etc. Create an exhaustive document as well as a shorter document that gives a snapshot of the benefits in an easily digestible format. 
  • Distribute the benefit package to interviewees, shortlisted candidates, or new hires on a case-by-case basis. 
  • Go back and update your benefits package here and there, either on a set timeline or whenever Austrian regulations change. 

So, there you have it – everything you need to know about employee benefits in Austria. With the information we’ve shared in this article, you’re now ready to proceed with the hiring process. We hope you found all the information you were looking for, and we wish you the best in your business expansion efforts.