EOR Service in Austria

Shraddha Saxena

Hire, Onboard and Pay Employees in Austria Quickly and Efficiently

Hiring in Austria at a glance

CURRENCY
Euro (€, EUR)
working hours
8 hours a day / 40 hours a week
public/bank holidays
13 to 15
capital
Vienna
language
German
date format
DD/MM/YYYY
remote workers
1.2M
tax year
January 1st to December 31st
minimum hourly salary
No minimum wage
CURRENCY
Euro (€, EUR)
public/bank holidays
13 to 15
capital
Vienna
language
German
date format
DD/MM/YYYY
tax year
January 1st to December 31st
payroll frequency
Monthly
GDP
US $515.2 billion
working hours
8 hours a day / 40 hours a week

Employer of Record in Austria

An Employer of Record (EOR) in Austria offers a comprehensive solution for companies looking to expand their operations without establishing a legal entity. The EOR acts as the official employer, handling all employment-related tasks, including payroll, tax compliance, benefits administration, and HR management. By partnering with an EOR in Austria, companies can tap into the local talent pool while minimizing administrative burdens and compliance risks. The EOR handles employment contracts and statutory benefits and ensures compliance with Austrian labor laws. It provides seamless onboarding, payroll processing, and ongoing HR support. With an in-depth understanding of the local regulations and practices, the EOR helps businesses navigate the complexities of the Austrian employment landscape, allowing them to focus on their core operations and achieve their global expansion goals efficiently.

Why use Austria EOR?

EORs/PEOs enable you to hire a skilled Austrian workforce, without a local entity and the expertise to navigate complex labor laws. This enables businesses to focus on core operations, maintain legal compliance, and unlock their growth potential in the Austrian market.


Foreign employers, while hiring from this highly skilled talent pool, must ensure full compliance with local employment laws. Austria ranks no.1 for labor rights and has a robust social security policy that has earned the country the 1st and 4th spot  for pension coverage and social protection. Moreover, Sozialpartnerschaft, Austria’s systematic social partnership system enables labor unions to constantly engage with employers to represent and communicate employee needs with changing socio-economic conditions. 


This means that employers have to deal with changes in labor laws every now and then. For foreign employers, this means you’d have to hire legal experts and payroll specialists to ensure employees are compliantly hired and paid.


Partnering with Gloroots’ Austria EOR helps ensure compliance with these employment regulations. We help you navigate the intricacies of hiring employees, contractors, and migrant workers, minimizing legal risks and enabling you to better focus on growing your team  in Austria.

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EOR Costs in Austria

The cost of Austria EOR/PEO services in  Austria may differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. Gloroots offers a fixed fee for EOR services. The pricing for Austria EOR/PEO services is a monthly fee per employee. 

Key Metrics For Foreign Employers

Austria ranks 17th globally in the Talent Competitiveness Index (GTCI) owing to highly skilled workforce supported by futuristic educational policies and governmental initiatives. For instance, Austria ranks 7th in the GTCI index for R&D expenditure. 

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Austria.

Factors Global Ranking Interpretation
Rule of law 7 Indicates effectiveness of law enforcement
Labour-employer cooperation 7 Indicates positive labor-employee relationships
Reading Maths, and Science 27 Indicates average scores in OECD's survey of 15-year old students
University Ranking 26 Indicates average QS rankings
Labour productivity per employee 14 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 72 Indicates findability of skilled talent
Workforce with tertiary education 36 Indicates % of workforce with PG degrees
Digital Skills 24 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots’ Recrew platform, you can discover amazing talent in Austria.

Why work in Austria?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

The term "misclassification of employees" refers to the inaccurate classification of workers by their employers. Misclassification occurs when an employer categorizes a worker as an independent contractor to exempt them from certain employment laws and benefits, even if the worker’s employment relationship is similar to that of a full-time employee. 

Utilizing a PEO/EOR in Austria helps mitigate the risks associated with misclassification by crafting compliant employment contracts, ensuring compliance with labor laws,, accurate payroll processing, and access to comprehensive benefits.

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Employing in Austria

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax and other tax

Tax Type Employer Contribution
Corporate Tax 24% (standard rate)
VAT 20% (standard rate)

Income Bracket Tax Rate
Up to EUR 11,693 0%
Up to EUR 19,134 20%
Up to EUR 32,075 30%
Up to EUR 62,080 42%**
Up to EUR 93,120 48%
Up to EUR 1 million
50%
Over EUR 1 million 55%

Please note that the corporate tax rate is 24% of the corporate tax base, and the income tax rates for employees are progressive, increasing as the income level rises. The 42% rate applies up to EUR 1 million for incomes earned in 2021.

Social Security contribution

Contribution type Employer Contribution Employee Contribution
Health Care 3.78% 3.87%
Accident Insurance 1.1% -
Pension Scheme 12.55% 10.25%
Unemployment Insurance 3% 3%
Various (additional contributions) 0.6% 1%
Total Contribution 21.03% 18.12%

Separation

Termination Process

In Austria, employers typically have several choices when it comes to terminating an employment agreement:

1. Termination by mutual agreement: Employers and employees can mutually agree to terminate the employment contract.

2. Unilateral termination: Employers have the authority to unilaterally terminate the employment agreement without the agreement of the employee.

3. Resignation by the employee: Employees can voluntarily resign and terminate the employment agreement at the end of their contract.

4. Urgent dismissal of the employee: Employers may choose to dismiss an employee urgently, typically in cases of serious misconduct such as theft or other significant violations.

Notice Period

The length of notice varies based on the employee's length of service. For employees with up to two years of service, the statutory notice period is six weeks. However, for employees with over 25 years of service, the notice period can extend up to five months.

Severance Pay

In Austria, unless an employee is dismissed for gross misconduct or voluntarily terminates their employment, they are entitled to receive severance pay. This regulation applies to all employment contracts issued after 2003. 

Severance pay in Austria is managed through an employee provision fund. Once the employee's probation period ends, the employer is required to contribute 1.53% of the employee's monthly salary to this fund. The accumulated amount in the fund is then disbursed to the employee as severance pay.

Probation Periods

In Austria, a one-month probationary period is common in Austria. During this period, either the employer or the employee can terminate the contract without providing an explanation.

Additionally, before giving an employee a notice of dismissal, the employer is required to give at least one week's notice to the work council. If requested by the work council, the employer must engage in consultation with them before proceeding with the dismissal.

Start Hiring in Austria today

When it comes to global hiring, ensuring compliance can be a complex undertaking. Employers must navigate through employment laws, payroll procedures, DE&I compliance, data protection regulations, and other legal requirements to ensure a smooth and legally compliant onboarding process. Setting up the necessary infrastructure and staying updated with the ever-evolving compliance landscape can add significant complexity to the hiring process.

At Gloroots, we are here to simplify this journey for you. Our comprehensive solutions offer a centralized platform to efficiently manage all aspects of hiring in Austria. With our in-house experts, you can confidently navigate cross-border employment and payroll compliance risks. We provide support in generating employment contracts, ensuring timely payments, and offering compliant benefits, enabling you to focus on screening and selecting the right talent.

Our promise is to provide you and your employees with a seamless global employment experience.

Contact our experts today to kickstart your global hiring campaign in Austria.

Grow your team in Austria

Employers in Austria must have a local legal organization and utilize local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Austria makes compliance with employment laws demanding.

With Gloroots' global Employer of Record (EoR) service, you can let Gloroots handle the heavy lifting of payroll, tax, benefits, and compliance, allowing you to concentrate on what matters most: your employees and company growth.

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Experience Seamless Hiring in Austria?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Austria.

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