Find your employer of record in Austria

Employees in Austria have access to the following benefits:

• Transportation allowance.
• Meal vouchers.
• Gym or wellness allowance.
• Private pension contribution.
• Private Health Insurance or allowance.
• Home office allowance.
• Additional Leave, which is usually 5 additional days.

Those who are non-EU/EEA/Swiss citizens must apply for a Schengen Visa to enter Austria. On the other hand, those who are citizens of the European Union Countries, the European Economic Area, or Switzerland can work in Austria without a visa. And this is possible as Austria is part of the Schengen Area of Europe. However, these individuals will only be able to work for up to 90 days. And based on a point criteria system, the authorities can approve long-term visas, work permits, and residence permits.

Therefore, depending on your qualifications and the length of your stay, you can choose a suitable type of work visa. Red-White-Red Card As a Highly Qualified Worker from a third country, an individual may enter Austria under a Job Seeker Visa. And with this visa, they can look for employment in the country. Plus, if they receive an employment offer during their visa’s validity period, they may apply for a Red-White-Red card. And, to obtain it, they must apply for it at the corresponding residence authority in Austria.

However, if they have received an employment offer, they can apply for this card with the pertinent Austrian representation in their home country or country of residence. And in both cases, it is a requirement that the applicant reaches at least 70 points according to the list of criteria. EU Blue Card On the other hand, third-country citizens may obtain an EU Blue Card, for which there is no points system. However, these individuals must meet the following conditions:

• Complete a course of study with a minimum duration of three years at a university. Or it can be at any other tertiary educational institution.
• Receive a binding job offer for no less than one year in Austria. And the employment must correspond to the applicant’s education.
• The applicant will earn a gross annual income of at least 1.5 times the average yearly gross income of full-time workers.
• Qualify for the position. And their labor market test (Arbeitsmarktprüfung) shows no equally qualified worker registered as a job seeker with the Public Employment Service (AMS) available for the job. Red-White-Red Card (for Skilled Workers in a Shortage Occupation) Those who are not EEA or Swiss citizens can apply for a Red-White-Red Card. And, in this case, as Skilled Workers in a Shortage Occupation.

But to get this card, which is a combined residence and work permit valid for 24 months, applicants must:

• Provide documents to prove that they completed training in a shortage occupation under the regulation.
• Provide proof of a binding job offer in Austria. And also, they must show evidence that their prospective employer is willing to pay the minimum that the law stipulates. Or it can also be the minimum that the regulation or collective agreement stipulates.
• Reach at least 55 points. After the applicant completes the initial term with the Red-White-Red/EU Blue Card they may apply for an additional card. And this additional document is the Red-White-Red Card Plus, which provides extra benefits. Non-EEA or Swiss citizens who hold Red-White-Red Cards have access to a fixed-term settlement and unlimited labor market access. And these benefits are for both self-employed and employed individuals, not limited to a specific employer.

On the other hand, employers seeking global employees should request Global Employment Outsourcing services. Plus, employee onboarding solutions and the services of an Employer of Record in Austria can also be very useful.

In Austria, the standard VAT rate is 20%. Nonetheless, due to COVID-19 special measures, there were many industry and product special concessions in 2022. And you can learn more about this topic with an Employer of Record in Austria or Contractor Management Services.

Termination Process

The employee may be eligible for severance pay upon termination of their employment contract. Nonetheless, it will depend on certain factors, such as the reason for termination. Furthermore, there are two different severance pay schemes in Austria. And both schemes are linked to the employment contract start date.

Notice Period

In Austria, the notice period will vary depending on the employee’s length of employment as follows:

Severance Pay

There is a special regulation regarding severance pay in Austria for workers whose employment commenced before January 1, 2003. And that is workers whose employment has lasted for at least 3 years will receive a particular severance payment.

But employers must calculate it as a multiple of the remuneration payable to the employee before termination, as follows:

• The employee who served for less than 5 years, gets 2 times the regular salary payment
• The employee who served between 5 and 10 years, gets 3 times the regular salary payment
• The employee that served between 10 and 15 years, gets 4 times the regular salary payment
• The employee that served between 15 and 20 years, gets 5 times the regular salary payment
• The employee that served between 20 and 25 years, gets 9 times the regular salary payment
• The employee who served for more than 25 years, gets 12 times the regular salary payment

Furthermore, workers forfeit their claim to receive the severance payment from their employer. But this can only happen if they resign without cause or if they are summarily dismissed for a reason. On the other hand, there is a new severance pay scheme that applies to those whose employment began after December 31, 2002. And the new severance pay scheme is due to the regulated requirement for employers to pay monthly contributions. According to the law, these contributions equal 1.53% of the pre-tax salary to an outside severance fund provider.

And this provider is the one who manages and invests the funds received from employers. As a result, these employees are eligible for the new severance pay scheme, regardless of how the employment relationship ended. However, it might be necessary to consider some exceptions and waiting periods.

Probation Period

In Austria, the standard probation period must not exceed 1 month. However, there can an exception for apprenticeships whose probation period is usually 3 months.

Paid Time Offs

In Austria, the statutory holiday entitlement is equal to 5 weeks or 25 days per year (for employees who have completed 6 months of service). And these days will increase to 6 weeks or 30 days once an employee completes 25 or more years of service for the same employer. Plus, up to 12 years of prior employment in other jobs and periods of education can also be entitled to a worker.

So, the required number of years of employment with the same employer will decrease to 13 years. Apart from this, there may be deviations to this rule in different collective agreements. And with an international PEO, you can learn more details about this topic.

Public Holidays

There are 10 national holidays throughout the year.

Vacation Holidays

There are 25 vacation holidays throughout the year.

Sick Days

In Austria, sick leave entitlement will vary according to the employee’s length of employment as follows:

• The employee who served for 1 year, gets 6 weeks of paid sick leave
• The employee who served between 2 and 15 years, gets 8 weeks of paid sick leave
• The employee that served between 15 and 25 years, gets 10 weeks of paid sick leave
• The employee who served for more than 25 years, gets 12 weeks of paid sick leave

However, Social Security will cover any sick leave beyond the above entitlement. In addition, employees must provide a valid certificate to receive their corresponding sick leave entitlement.