Employer of Record in Austria: 2026 Cost and Compliance Guide

Austria offers a skilled, multilingual workforce in Vienna, Graz, Linz and Innsbruck, and a gateway to Central and Eastern Europe. Employing there means budgeting for social security of about 21% for salaried staff, a 1.53% severance fund contribution, and payroll taxes of about 7%, on top of salaries that are usually paid 14 times a year.

Austria has no statutory minimum wage. Instead, about 95% of employees are covered by collective agreements, which set minimum pay scales and, in most sectors, the 13th and 14th salaries.

The Austria-specific issue for EOR is structure: providing workers to another business that directs their work is labour leasing (Arbeitskräfteüberlassung), a regulated trade with equal-pay rules. This guide covers costs, the leasing rules, the main employment rules, provider comparison and when to set up your own company. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record in Austria employs staff on behalf of foreign businesses: it signs the employment contract, registers the employee with the health insurance fund (ÖGK), runs payroll and the monthly contribution reports, pays the payroll taxes, and applies the collective agreement.

Because your business directs the day-to-day work, Austrian law generally treats the arrangement as labour leasing: making workers available to a third party for work. The Labour Leasing Act (AÜG) looks at the real economic substance rather than the label on the contract, and labour leasing is a regulated trade that requires proof of qualification.

Ask each provider whether it holds a labour leasing trade licence in Austria, which collective agreement applies, and how it meets the equal-pay rules for your hire.

Austria's Labour Leasing Act (Arbeitskräfteüberlassungsgesetz, AÜG) defines labour leasing as making workers available to third parties for work. The leasing company (Überlasser) employs the worker; the business that uses the worker for its own tasks is the user (Beschäftiger). Whether an arrangement is leasing depends on its real economic substance, not what the contract calls it.

Labour leasing is a regulated trade (reglementiertes Gewerbe) that requires proof of qualification. A foreign leasing company must be lawfully established for the activity in its home state.

During an assignment, the worker is entitled to appropriate, locally customary pay, taking into account the collective-agreement or statutory pay of comparable employees at the user's business. For long assignments to a user with a defined-benefit company pension, the user can become responsible for that pension after four years.

What to ask an EOR

Austrian employment cost has five layers: gross salary (usually 14 payments), the employer's social security share up to the contribution ceiling, the severance fund (BV) contribution, payroll taxes (DB, DZ and municipal tax) on all pay, and the EOR fee.

Rates below are for a salaried employee (Angestellte) in Vienna. The chamber surcharge (DZ) varies by federal state, from 0.31% to 0.40%.

Annual cost at example salaries

What these figures include and exclude

• Annual salaries here are 14 × the monthly salary. Social security stops at €6,930 a month on regular pay and €13,860 a year on special payments, which together come to €97,020 a year when pay is split into 14 equal payments.
• The severance fund (BV), DB, DZ and municipal tax have no ceiling and apply to all pay, including the 13th and 14th salaries.
• The DZ default is Vienna's 0.36%; it ranges from 0.31% (Upper Austria) to 0.40% (Burgenland).
• Employee social security (18.07% for salaried employees, with a reduced unemployment share on lower pay), the 0.50% chamber of labour levy and wage tax are deducted from pay and are not employer costs.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive. For worked examples at four salary levels, see cost to hire an employee in Austria.

Austrian employment law combines statutes such as the Salaried Employees Act (AngG), the Annual Leave Act and the Working Time Act with sector collective agreements, which cover about 95% of employees and set minimum pay and most special payments.

Minimum wage

Austria has no statutory minimum wage. Minimum pay is set by collective agreements for each sector or occupation, which cover about 95% of employees and can't be undercut by contract.[6]

13th and 14th salaries

There is no statutory entitlement to special payments. They are due if the collective agreement provides for them, and most collective agreements provide a holiday bonus and a Christmas bonus, the so-called 13th and 14th salaries. Employees joining or leaving during the year get a pro-rata share.[7]

Annual leave

30 working days of paid leave a year (5 weeks on a six-day week count), rising to 36 after 25 years of service. In the first six months, leave accrues pro rata; after that, the full entitlement applies, and from the second year it arises at the start of each working year.[9]

Public holidays

13 public holidays: 1 January, 6 January, Easter Monday, 1 May, Ascension Day, Whit Monday, Corpus Christi, 15 August, 26 October, 1 November, 8 December, 25 December and 26 December.[10]

Working time

Normal working time is 8 hours a day and 40 hours a week. Including overtime, working time may not exceed 12 hours a day and 60 hours a week.[11]

Sick pay

A salaried employee keeps full pay for up to 6 weeks of illness, rising to 8 weeks after one year of service, 10 weeks after 15 years and 12 weeks after 25 years, followed by 4 weeks at half pay.[8]

Probation

A probationary period of up to one month can be agreed, during which either side can end the employment at any time.[8]

Notice periods

Unless more favourable terms are agreed, the employer must give 6 weeks' notice, rising to 2 months after 2 years of service, 3 months after 5, 4 months after 15 and 5 months after 25, to the end of a calendar quarter. The contract can allow notice to end on the 15th or last day of a month instead. Employees give one month's notice to the end of a month.[8]

Severance

Under the 'new severance' system, the employer pays 1.53% of pay, including special payments, into an employee severance fund each month, instead of paying severance itself when employment ends.[2]

Labour leasing (EOR relevance)

Making workers available to a third party for work is labour leasing, judged by its real economic substance. It is a regulated trade requiring proof of qualification, and leased workers are entitled to appropriate pay that takes into account what comparable employees at the user's business receive.[12]

• From 1 January 2028

  Austrian family fund contribution (DB) falls to 2.7%

  Employer cost falls by 1% of total pay: €600 a year on a €60,000 salary.

See every country in the employment law changes tracker.

These EOR providers publish Austria pages and starting prices that apply across their country coverage. Prices are their own published starting rates in USD, from our pricing tracker.

In Austria, ask whether the provider holds a labour leasing licence, which collective agreement applies, and how equal pay with your business is assessed.

Compare providers for Austria

• RemoFirst vs PlayrollIn Austria: US$199 vs US$399 a month (published starting prices).
• Remote vs Atlas HXMIn Austria: US$599 vs US$599 a month (published starting prices).
• Remote vs PlayrollIn Austria: US$599 vs US$399 a month (published starting prices).
• Deel vs Globalization PartnersIn Austria: US$599 vs US$599 a month (published starting prices).

For each provider's products, pricing model and fit signals, see the EOR provider directory.

The usual alternatives are a limited company (GmbH) or a registered branch of your foreign company. Employing directly removes the labour leasing question: your own entity is the employer and directs the work.

Running costs include accounting, payroll, tax filings and registered office costs.

For a step-by-step version of this calculation, see EOR vs local entity: a break-even framework.

1. 1

   Define the role and salaryDay 0

   Agree the gross monthly salary, the collective agreement and grading, and the number of payments a year.

2. 2

   Check the legal basis1–2 days

   Ask the provider about its labour leasing licence and how equal pay with your business is assessed.

3. 3

   Compare itemised quotes1–3 days

   Request Austrian quotes covering the fee, social security, BV, DB, DZ, municipal tax, the 13th and 14th salaries and offboarding. Use the estimator to sanity-check totals.

4. 4

   Sign the commercial agreement

   Review the legal basis, notice and termination costs, IP assignment and data protection (GDPR).

5. 5

   Contract and registration1–2 weeks

   The provider issues the employment contract and registers the employee with the ÖGK before work starts.

6. 6

   Ongoing administrationMonthly

   Monthly payroll and contribution reports, payroll taxes, and special payments when due.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   Sozialversicherungswerte für 2026

   Österreichische Gesundheitskasse (ÖGK)

   Contribution ceilings for 2026 (€231 a day, €6,930 a month, €13,860 a year for special payments) and total contribution rates.

2. 2
   Arbeitsbehelf 2026 für Dienstgeberinnen und Dienstgeber

   Österreichische Gesundheitskasse (ÖGK)

   Contribution groups and base rates (salaried employees: 39.05% total, 20.98% employer, 18.07% employee); BV contribution of 1.53% of monthly pay including special payments.

3. 3
   Familienlastenausgleichsgesetz 1967 § 41

   RIS (Bundeskanzleramt)

   Dienstgeberbeitrag of 3.7% of pay from 2025 and 2.7% from 2028.

4. 4
   Zuschlag zum Dienstgeberbeitrag (DZ)

   Wirtschaftskammer Österreich

   DZ rates by federal state for 2026 (0.31% to 0.40%), made up of a 0.12% federal share and a state share set by each regional chamber.

5. 5
   Bemessungsgrundlage und Steuersatz der Kommunalsteuer

   Unternehmensserviceportal (BMF)

   Municipal tax of 3% of the payroll, with a €1,095 allowance for monthly payrolls up to €1,460.

6. 6
   Mindestlohn in Österreich

   Sozialministerium

   No statutory minimum wage; minimum pay set by over 800 collective agreements covering about 95% of employees.

7. 7
   Entgelt: Sonderzahlungen

   Unternehmensserviceportal

   Special payments are due only if the collective agreement provides for them; most provide a holiday bonus and Christmas bonus (13th and 14th salary).

8. 8
   Angestelltengesetz (AngG)

   RIS (Bundeskanzleramt)

   Sick pay (§ 8), probation (§ 19) and notice periods (§ 20) for salaried employees.

9. 9
   Urlaubsgesetz § 2

   RIS (Bundeskanzleramt)

   30 working days of annual leave, 36 after 25 years.

10. 10
    Arbeitsruhegesetz § 7

    RIS (Bundeskanzleramt)

    The 13 statutory public holidays.

11. 11
    Arbeitszeitgesetz §§ 3, 9

    RIS (Bundeskanzleramt)

    Normal working time of 8 hours a day and 40 a week; maximum 12 hours a day and 60 a week.

12. 12
    Arbeitskräfteüberlassungsgesetz (AÜG) and labour leasing licensing

    RIS (Bundeskanzleramt) / Unternehmensserviceportal

    Definitions (§ 3), substance over form (§ 4) and pay of leased workers (§ 10); labour leasing as a regulated trade requiring proof of qualification (USP).

Austria is a higher-cost market: about 29.6% on top of salary in Vienna for social security, the severance fund and payroll taxes, on salaries usually paid 14 times a year.

The structural question is labour leasing. An EOR arrangement where you direct the work is generally leasing, a regulated trade with equal-pay rules tied to your own business. Ask any provider about its licence and the collective agreement, and for a long-term team, plan to employ through your own entity.

Compare an EOR against your own company with our EOR vs local entity guide. For neighbouring markets, see Germany and Switzerland.