HR Software for Austria
Leave Policy
Maternity Leave
Employees hired through IceHrm have a probationary period of 90 days, which you can extend up to 180 days. From January 2022, it is IceHrm’s company policy to include probationary periods in all employment contracts.
The probationary period helps employers and employees make sure they are a good fit for each other. This allows the company to quickly decide whether the position is right for them, and the employee can see whether it matches their career goals.
Paternity Leave
Employees are entitled to one month of paid paternity leave. The leave can be taken 1 day after the birth and no later than 1 week after the birth. The employee must give the employer three months’ notice and is not entitled to the 13th or 14th during this leave. The employee receives a family time bonus, which entitles him to receive €22.60 per day from social security.
Parental Leave
Employees are entitled to 2 months of parental leave (maternity leave) until the child is 24 months old. Both parents can decide how to divide their free time. Both parents can take parental leave. Parents are entitled to payments in accordance with the Child Care Benefit Act. Parents can choose between two childcare benefit systems:
- Childcare allowance account (flat rate regulation)
- Income-dependent childcare allowance
Parental leave can be extended. It is unpaid.
Sick Leave
Sick leave in Austria is complex. There is no maximum number of days of paid sick leave. Employees’ entitlement to sick leave depends on the length of the employment relationship with the same employer and ranges from 6 to 12 weeks.
Pay & Tax
Minimum Wage Requirements
The minimum wage in Austria depends on the company’s industry and the employee’s seniority. The minimum wage is between EUR 1,522.50 and EUR 2,094.31.
For IceHrm EOR employees, the minimum wage set in the GAV is EUR 2,035 per month or EUR 28,490 per year, including the 13th and 14th.
Individual Income Tax
Personal income tax ranges from 0% to 55%. Income tax is calculated at progressive rates.
| Gross Annual Salary | 2024 Tax Rate |
|---|---|
| up to €12,465 | 0% |
| €12,465.01 to €20,397 | 20% |
| €20,397.01 to €34,192 | 30% |
| €34,192.01 to €66,178 | 40% |
| €66,178.01 to €99,266 | 48% |
| €99, 266 to €1,000,000 | 50% |
| over €1,000,000 | 55% |
Payroll Cost
Employer costs are generally estimated at 29.68% + employer tax/work allowance.
- Social Security – 20.89%
- Social insurance based on the 13th and 14th salaries – 20.53%
- Pension fund for employees – 1.53%
- Family burden equalization fund – 3.90%
- Surplus to the above cash register – 0.36%
- Municipal tax – 3.0%
- Vienna employer tax – 2 EUR/week per month.
- Monthly allowance for work equipment – EUR 30/month (EUR 25 is tax-free, EUR 5 is taxable) – Employer costs paid to the employee and not to the statutory bodies.
Overtime Pay & Maximum Hours
The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.
Permanent contracts can generally be terminated without reason as long as the statutory notice periods are observed. Additional restrictions and conditions apply to fixed-term contracts.
Permissible terminations include:
- Voluntary by the employee
- By mutual agreement
- Unilaterally by the employer due to:
1. Probation period
2. Without reason, as long as the notice period is adhered to
3. Disloyalty to the employer
4. Inability to perform job duties
5. Failure to do the agreed work (without legitimate reason)
6. Failure to comply with a reasonable instruction from the employer or attempting to induce other employees to disobey such instructions
7. Attacks and immoral behavior towards the employer or other employees
8. Conducts an independent commercial business or carries out commercial transactions in the employer’s company on his own account or for the account of others
9. The employee is prevented from carrying out the agreed work for a long period of time due to imprisonment or another reason, apart from illness or an accident - Through expiry of the contract
Notice Period
The minimum notice period is 6 weeks and the maximum notice period is 5 months. The notice periods are extended depending on the length of the employment relationship.
| Length of Employment | Notice Period |
|---|---|
| Less than 2 years | 6 weeks |
| Between 2 to 5 years | 2 months |
| Between 5 to 15 years | 3 months |
| Between 15 to 20 years | 4 months |
| Over 25 years | 5 months |
Severance for Employees
In Austria, as part of the severance pay regulation, the employer is obliged to pay 1.53% of the monthly salary to a severance pay fund for employees. Upon termination of the employment relationship, the employee can request payment of the collected amount or leave it in the cash register for further assessment.
In order to protect you from unforeseen financial risks arising from the termination of the employment relationship, IceHrm applies a severance pay provision in all employment contracts in this country. IceHrm has extensive expertise in managing litigation risk globally and our severance provision calculation is based on applicable common law or statutory requirements and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.
Statutory Time Off
Paid Time Off
Both full-time and part-time employees are entitled to 25 days of paid time off per year. PTO is credited monthly at 2.08 days per month. Employees are eligible for PTO once it has been accrued.
Public Holidays
There are 13 national and regional holidays in Austria. National holidays include:
- New Year
- Epiphany
- Easter Monday
- National holiday
- Ascension of Christ
- Whit Monday
- Corpus Christi
- Assumption Day
- National holiday
- All Saints Day
- Immaculate Conception
- Christmas Day
- St. Stephen’s Day
Onboarding
Onboarding
Onboarding takes 3 working days.
Additional Info
Employment Contract Details
The contracts must be written in German or English and can be bilingual. They must be in writing and signed by both parties.
A contract must contain:
- Surname
- Address
- Start date
- Length of employment
- Place of work
- Type of activity
- Salary
- Working hours
- Vacation time
- Notice period and date
Probation Period
The standard trial period as per IceHrm policy is 30 days.