Hiring in Austria: Employer Costs, Labor Laws and How to Hire
Austrian employers pay 20.98% social insurance on pay up to €6,930 a month in 2026 (21.23% in Vienna), and the employee pays 18.07%. Payroll taxes and the company pension fund add 8.59% more in Vienna. On €4,000 a month paid 14 times in Vienna, the employer's cost is €72,699.20 a year.
Hiring someone in Austria? This guide covers what an employee costs, social insurance and payroll taxes, the labor rules that apply, how pay works without a statutory minimum wage, income tax, work visas and the ways a company outside Austria can employ someone there.
Employer and employee contributions in Austria, 2026
Key employment rules in Austria
How to hire in Austria
Hiring in Austria comes down to two decisions: who you hire, and how you employ them.
- Find the person. Write the role, set the salary against Austrian pay levels and the collective agreement for the sector, then source and interview candidates. You can run the search yourself with a job post, or use a placement service that delivers a shortlist.
- Choose how to employ them. An Austrian entity running payroll, an employer of record or a contractor agreement. Each option is explained below.
- Make the offer. The contract has to meet the rules in the employment table above and the collective agreement (Kollektivvertrag) that applies to the employer's sector. Austrian salaries are usually quoted per month and paid 14 times a year.
Your options for employing someone in Austria
- Austrian entity: you register a company in Austria, run payroll and pay social insurance and payroll taxes yourself. It suits a team of several people in Austria.
- Employer of record (EOR): a third-party provider becomes the legal employer and runs Austrian payroll for a monthly fee per employee. Your company directs the work.
- Contractor: the person invoices you as a self-employed worker. The relationship has to be genuinely independent, or it can count as employment.
Euro Remote Talent does not employ people on your behalf. We handle the placement: we find and shortlist the candidate, and you employ them through the route that fits.
What an employee costs in Austria
Take an office employee in Vienna paid €4,000 gross a month in 2026. With the 13th and 14th salary, that is €4,000 x 14 = €56,000 a year. Both the monthly pay and the 2 special payments are below the contribution ceilings (€6,930.00 a month and €13,860.00 a year for special payments), so each rate applies to all pay. The employer pays:
- Social insurance, Vienna: €56,000 x 21.23% = €11,888.80
- Company pension fund (BV): €56,000 x 1.53% = €856.80
- Employer contribution to the family fund (DB): €56,000 x 3.7% = €2,072.00
- DB surcharge (DZ), Vienna: €56,000 x 0.36% = €201.60
- Municipal tax (Kommunalsteuer): €56,000 x 3% = €1,680.00
That is €16,699.20, or 29.82% on top of pay. The employer's cost is €72,699.20 a year, before any items in the collective agreement. Outside Vienna, social insurance is 20.98% instead of 21.23% and the DZ surcharge is between 0.31% and 0.40%. The employee pays 18.32% social insurance in Vienna, or €10,259.20, which the employer withholds from pay.
Minimum wage and pay
Austria has no statutory minimum wage. Minimum pay is set in more than 800 collective agreements (Kollektivverträge), negotiated by unions and employer groups without the state. About 95% of employees are covered. Which agreement applies depends on the employer's sector, not the job title, and a contract cannot pay less than it. Where no agreement exists, minimum wage rates (Mindestlohntarife) set by the social partners can apply.
The 13th and 14th salary (holiday and Christmas pay) are not set by statute. Their amount and timing come from collective agreements, works agreements and contracts, and staff who join or leave during the year get a pro rata share.
The median gross annual income of full-time, full-year employees was €55,678 in 2024, up 8.1% on 2023, according to Statistik Austria. Over 14 payments that is about €3,977 each. See our average salary in Austria and Austria public holidays 2027 pages.
Income tax in Austria
The employer withholds wage tax from pay each month. The 2026 rates on annual taxable income:
| Taxable income a year, 2026 | Rate |
|---|---|
| Up to €13,539 | 0% |
| €13,539 to €21,992 | 20% |
| €21,992 to €36,458 | 30% |
| €36,458 to €70,365 | 40% |
| €70,365 to €104,859 | 48% |
| €104,859 to €1,000,000 | 50% |
| Over €1,000,000 | 55% |
Each rate applies to the part of income in its band. The 55% rate above €1 million applies until 2029; after that the top rate is 50%.
Work visas
Two routes for workers from outside the EU and EEA:
- EU Blue Card: for university graduates with a binding job offer that matches their education, paying at least €55,678 a year in 2026, including special payments.
- Red-White-Red Card for other key workers: at least 55 points on the criteria list and at least €3,465 gross a month in 2026.
How Euro Remote Talent can help
We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299 and reach candidates who want to work remotely.
See how placement works, post a job or book a 30-minute call. Browse remote jobs in Austria to see who is hiring there now.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
How much does an employer pay in social insurance in Austria?
20.98% of pay up to €6,930 a month in 2026, or 21.23% in Vienna. On top come 1.53% for the company pension fund, 3.7% for the family fund (DB), a state surcharge of 0.31% to 0.40% and 3% municipal tax.
Is there a minimum wage in Austria?
No statutory one. Minimum pay is set in more than 800 collective agreements, which cover about 95% of employees. A contract cannot pay less than the agreement for the employer's sector.
Why do Austrian employees get 14 salaries?
Collective agreements, works agreements and contracts usually provide a holiday payment and a Christmas payment, known as the 13th and 14th salary. Staff who join or leave during the year get a pro rata share.
How much notice must an Austrian employer give?
6 weeks in the first 2 years of service, then 2 months after 2 years, 3 after 5, 4 after 15 and 5 after 25. Notice runs to the end of a quarter unless the contract allows the 15th or last day of a month.
Can a company outside Austria hire someone there without a local entity?
Yes. The usual routes are an employer of record, a third-party provider that employs the person for you, or a genuine contractor agreement. Euro Remote Talent handles the placement: we find, screen and shortlist the person, and you choose the route.
Sources
- Dachverband der österreichischen Sozialversicherungen, Beitragsrechtliche Werte in der Sozialversicherung 2026. Checked 3 Nov 2026.
- USP, Die wichtigsten Aufgaben der Lohnverrechnung. Checked 3 Nov 2026.
- WKO, Zuschlag zum Dienstgeberbeitrag (DZ) 2026. Checked 3 Nov 2026.
- USP, Bemessungsgrundlage und Steuersatz der Kommunalsteuer. Checked 3 Nov 2026.
- USP, Tariff levels. Checked 3 Nov 2026.
- Arbeitsinspektion, Tagesarbeitszeit, Wochenarbeitszeit, Überstunden. Checked 3 Nov 2026.
- USP, Urlaub. Checked 3 Nov 2026.
- Arbeitsinspektion, Feiertagsruhe. Checked 3 Nov 2026.
- USP, Probezeit. Checked 3 Nov 2026.
- USP, Kündigung. Checked 3 Nov 2026.
- USP, Entgeltfortzahlung. Checked 3 Nov 2026.
- oesterreich.gv.at, Schutzfrist. Checked 3 Nov 2026.
- USP, Sonderzahlungen. Checked 3 Nov 2026.
- Federal Ministry of Social Affairs, Minimum Wage in Austria. Checked 3 Nov 2026.
- migration.gv.at, EU Blue Card. Checked 3 Nov 2026.
- migration.gv.at, Other Key Workers. Checked 3 Nov 2026.
- Statistik Austria, Annual personal income. Checked 3 Nov 2026.
