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HiringPedia/Europe/Austria
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Global Hiring GuideVerified data

Hiring in Austria.

Stable DACH market with the tax-friendly 14-payment structure and CBA-driven pay floors.

Vienna ยท capitalEUR โ‚ฌ ยท EuroAustro-Bavarian German

Before you hire in Austria

The Austria cost & compliance picture, in full.

Austria carries its own employment rules, statutory costs and termination exposure. Get the wrong setup and it means back-pay, penalties and misclassification claims. Here is the complete snapshot, free, so you can plan before you ever talk to us.

Termination complexity
High
Misclassification risk
High
Recommended model
EOR or Entity
Employer cost
~21.2%
Minimum wage
No statutory (CBA ~โ‚ฌ2,000)
13th / mandatory bonus
14 payments (13th & 14th)
Notice period
Tenure-based
Probation rules
1 month
Annual leave
25 days (30 after 25 yrs)
Sick leave
Employer-paid scaled
Parental leave
Up to 2 yrs
Working week
40 hrs
Payroll cycle
Monthly (14 pays)
Public holidays
13
Time to hire
1โ€“2 weeks (EOR)

Figures reflect current Austria statutory baselines, reviewed for 2026 and benchmarked against leading global employment providers. Statutory rules change through the year, so we confirm the exact, current numbers for your specific hire.

What to look for

The 5 decisions that make or break hiring in Austria.

Each of these shifts your cost, timeline and legal exposure. We walk you through all of them, and handle them for you, so nothing turns into a surprise later.

  1. 0114-payment salary with favorably-taxed 13th and 14th months
  2. 02Collective agreements set effective minimum pay
  3. 03Strong works-council framework
  4. 04Generous leave rising with seniority
  5. 05Robust parental-leave system
Don't navigate Austria alone. Getting any one of these wrong is expensive to unwind. Gracemark gives you a precise, current cost and compliance plan for Austria, and runs the employment, payroll and benefits for you through one accountable partner. It starts with a short consultation.
Don't just read it, hire it

Compliantly employ talent in Austria in days, not months.

Gracemark handles employment, payroll, benefits and compliance in Austria, and 180+ other countries, through one accountable partner. Vendor-agnostic guidance, backed by our own delivery engine.

  • โ†’ A specialist who actually knows Austria employment law
  • โ†’ Exact, current cost & severance numbers for your hire
  • โ†’ One accountable partner, no portals, no tickets
180+
Countries we operate in
1 day
Typical response time
100%
Compliance-first delivery

"They gave us the exact Austria numbers in a day and had our first hire compliant within the week, no portals, no runaround."

โ€” A Gracemark client, global expansion lead

Get your Austria answers

Tell us a little about your plans in Austria. A real specialist reviews every request and replies personally within one business day, with the exact numbers for your hire.

A specialist replies within one business day. Free, and no obligation.

180+ countries covered Compliance-first, vetted Reply in 1 business day

FAQs

Hiring in Austria, common questions.

How do I hire employees in Austria?

To hire in Austria, most U.S. companies either open a local entity or use an Employer of Record (EOR). EOR or Entity Gracemark handles Austria employment, payroll, benefits and compliance through one accountable partner.

What is the employer cost of hiring in Austria?

Employer cost in Austria is ~21.2%. That is on top of gross salary, plus statutory items such as 13th-month / mandatory bonus (14 payments (13th & 14th)), vacation and social contributions. Gracemark provides an exact quote for your role and salary band.

What is the minimum wage in Austria?

The current minimum wage in Austria is No statutory (CBA ~โ‚ฌ2,000). Statutory floors change through the year, so Gracemark confirms the exact figure for your hire.

What is the notice period for terminations in Austria?

Notice period in Austria is Tenure-based. Termination complexity is rated high. Getting termination and severance wrong is one of the most expensive mistakes in Austria, plan it before the first hire.

How much annual leave and parental leave is required in Austria?

Statutory annual leave in Austria is 25 days (30 after 25 yrs). Parental leave is Up to 2 yrs. Sick leave is Employer-paid scaled. Public holidays: 13.

How long does it take to hire in Austria?

Time to hire in Austria is typically 1โ€“2 weeks (EOR) through an EOR, versus 3โ€“6+ months to open an entity. That is why most first hires in Austria go through an EOR.

What is the misclassification risk of using contractors in Austria?

Misclassification risk in Austria is rated high. Full-time, exclusive, day-to-day contractor arrangements are the most exposed, penalties include back-pay, statutory benefits and fines. Gracemark advises on when a contractor, EOR employee or entity hire is defensible.

Last reviewed: August 2026 ยท Gracemark Global

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