Employer of Record in Austria

An Employer of Record in Austria legally employs workers on your behalf, managing contracts, payroll, and statutory compliance under Austrian law.

CBA compliance and ÖGK (Austrian Health Insurance Fund) registration are the two primary operational requirements every employer must meet before a worker's first day.

• Hiring speed: An EOR can onboard an employee in 2–5 days. Setting up an Austrian entity takes 6–10 weeks.
• Employer social contribution burden: Approximately 20–22% of gross salary, covering pension, health, unemployment, and accident insurance.
• Notice period range: Six weeks to five months, depending on employee tenure and applicable CBA.
• Abfertigung Neu contribution rate: 1.53% of gross salary paid monthly into the employee severance fund.

This page covers the legal definition of an EOR in Austria, a comparison of hiring structures, a step-by-step hiring sequence, and key compliance requirements organized by topic.

Gloroots is an Employer of Record provider. This guide presents factual information about Austrian employment law and hiring structures to help you identify the right path for your situation.

What Is an Employer of Record in Austria?

An EOR becomes the legal employer on record in Austria, issuing employment contracts under Austrian law and applicable collective bargaining agreements, while the client company directs the employee's day-to-day work. For a deeper explanation of the mechanism, see how does EOR work.

Companies without an Austrian entity, those testing the Austrian market, or those scaling headcount quickly are the primary users of an EOR structure.

In practice, the client selects the candidate, the EOR issues a compliant German-language employment contract, runs monthly payroll through the ELDA electronic reporting system, registers the employee with ÖGK before Day One, and manages ongoing HR administration under the client's operational direction.

Your Hiring Options in Austria: EOR vs. Entity vs. PEO vs. Contractor

Companies hiring in Austria have four main paths: an Employer of Record, a directly owned Austrian entity (GmbH, AG, or the startup-oriented FlexCo introduced in 2024), a PEO arrangement if an entity already exists, or direct contractor engagement. Evaluating these options carefully before committing saves significant time and cost. For a broader evaluation framework, see best employer of record.

An EOR is appropriate when you have no Austrian entity, need to hire immediately, or want to test the Austrian market before committing to incorporation.

A PEO is appropriate when your Austrian entity already exists and you want to remain the legal employer while outsourcing payroll and HR administration.

Path	Setup Time	Compliance Ownership	Cost Structure	Best For
EOR	2–5 days	EOR bears compliance responsibility	Monthly per-employee fee	No entity, immediate hire, market testing
GmbH entity	6–10 weeks	Employer bears full compliance responsibility	€10,000 share capital plus legal and registration fees	Permanent Austrian presence, 10+ employees
FlexCo entity	6–10 weeks	Employer bears full compliance responsibility	€10,000 share capital plus legal and registration fees	Startups and growth-stage companies seeking a flexible structure
PEO	Entity required; faster activation once entity exists	Employer remains legal employer; PEO supports administration	Monthly service fee	Existing Austrian entity wanting HR support
Contractor	Immediate	Employer bears misclassification risk	Invoice-based; no statutory benefits	Short-term, project-based work with genuine independence

FlexCo was introduced in Austria in 2024 as a startup-friendly alternative to the GmbH, with the same €10,000 minimum share capital requirement but a more flexible governance structure.

How to Hire in Austria Through an EOR: Step by Step

The following steps cover the practical sequence for hiring an employee in Austria through an EOR, from the initial structure decision through to Day One registration and ongoing compliance management.

Step 1: Decide Whether an EOR or Entity Fits Your Austria Hiring Goal

If you are hiring 1–5 people or testing the Austrian market, an EOR is faster and requires no share capital. If you are building a permanent Austrian presence with 10 or more employees, a direct entity may be warranted. See the comparison table in the prior section for a full breakdown of setup time, cost, and compliance ownership by structure.

Step 2: Vet and Select an Austrian EOR Provider

Confirm that the provider operates through its own Austrian legal entity rather than an aggregator, has CBA expertise in your sector, can handle ELDA payroll reporting and ÖGK registration, and generates bilingual employment contracts. The provider selection criteria are covered in full in the How to Choose section further down this page.

Step 3: Draft a Compliant Austrian Employment Contract

Contracts must be in German (bilingual versions are permitted) and include the role, salary, working hours, probation period, notice period, and the applicable CBA reference.

If no written contract is issued, the employer must provide a Dienstzettel (written statement of terms) immediately. This document must list the employee's name, the employer's name, start date, job duties, salary, working hours, notice periods, and the relevant CBA reference. Failure to provide a Dienstzettel attracts fines under AVRAG.

Step 4: Register the Employee and Complete Pre-Start Compliance

Register the employee with the ÖGK (Österreichische Gesundheitskasse) via ELDA before their first day of work. Also register with the Tax Office for payroll withholding.

Confirm the applicable CBA and encode its wage floors, overtime rules, and 13th and 14th month bonus obligations into your payroll system before the employee starts.

Step 5: Run Compliant Monthly Payroll via ELDA

Process monthly payroll with correct income tax withholding, employee and employer social contributions, and any CBA-mandated allowances.

File monthly reports through ELDA, Austria's mandatory electronic payroll reporting portal. Where the applicable CBA requires it, include the 13th month holiday bonus (typically paid in June or July) and the 14th month Christmas bonus (typically paid in November or December).

Step 6: Manage Offboarding and Exit Compliantly

Observe the statutory or CBA notice period, which ranges from six weeks to five months depending on tenure.

Calculate the final payroll to include outstanding salary, unused annual leave, and prorated bonuses. Coordinate the Abfertigung Neu severance fund payout with the fund administrator.

Deregister the employee with ÖGK via ELDA within seven days of termination. If the employee held a work permit, notify the relevant municipality as well.

How to Choose the Right EOR in Austria

Selecting an EOR services provider in Austria requires evaluating specific legal, operational, and financial criteria before signing any agreement.

Austria's labor framework is detailed and sector-specific. The right provider must do more than process payroll. They must demonstrate active knowledge of Austrian law, CBA obligations, and statutory reporting requirements. Use the criteria below to assess any provider you are considering.

• CBA identification at offer stage: The provider must identify the correct CBA before issuing an employment offer, not after.
• Statutory reporting capability: Confirm the provider files via ELDA and meets ÖGK registration deadlines.
• 13th and 14th month management: The provider must calculate and pay CBA-mandated bonuses accurately and on time.
• Contract compliance: Contracts and Dienstzettel must meet AVRAG requirements and be issued in German.
• Transparent pricing: Costs should be predictable and country-specific, with no hidden fees.

Local Legal and CBA Knowledge

The provider must demonstrate working knowledge of Austria's Arbeitsverfassungsgesetz (ArbVG), AVRAG, and Arbeitszeitgesetz, as well as the sector-specific CBAs that govern most Austrian employment relationships.

Verify that the provider can identify and apply the correct CBA at the offer stage, including 13th and 14th month bonus obligations, before any contract is issued.

Own Entity Versus Partner Network

An EOR with its own Austrian legal entity registers employees directly with ÖGK and sponsors work permits. An aggregator that subcontracts to a local partner adds a layer of risk and delay. Always confirm whether the provider holds its own Austrian entity before signing.

Support Model and Language Capability

Austrian employment contracts must be in German. Confirm the provider generates bilingual German/English contracts and payslips.

Check whether HR support is available in German for employee-facing communications. A provider that operates only in English creates compliance gaps and employee confusion.

Pricing Transparency

Ask for a clear monthly per-employee fee and confirm what is included: payroll processing, statutory filings, ELDA reporting, ÖGK registration, and contract generation.

Opaque pricing structures often exclude CBA compliance reviews or immigration support. Review the full scope before committing. For a detailed breakdown of what EOR fees typically cover, see our guide on employer of record cost.

Security, GDPR, and Integration

Austria is an EU member state. All payroll and HR data processing must comply with GDPR.

Confirm the provider's HRIS integrates with your existing tools and that employee data is stored within the EU. Providers storing data outside the EU create regulatory exposure that falls on the hiring company.

Workforce and Talent Pool in Austria

Austria has a workforce of approximately 4.6 million people, with a median age of around 44 years. The workforce is highly educated, with strong representation in STEM fields and vocational training.

Vienna leads as the primary talent hub, with strengths in finance, IT, and life sciences. Graz anchors engineering and automotive talent, while Linz supports manufacturing and IT, and Innsbruck draws research and healthcare professionals.

Austria's work culture places a clear value on work-life balance. CBAs in metals, banking, and white-collar sectors reduce the standard 40-hour week to 38 or 38.5 hours. German is the working language, though English is widely used in multinational environments. Labor costs are higher than in Central and Eastern European neighbors, reflecting the country's productivity and regulatory standards. Companies hiring in Austria often also evaluate employer of record Germany given the close economic and cultural ties between the two markets.

Workforce Snapshot	Detail
Workforce Size	~4.6 million
Median Age	~44 years
English Proficiency	High in business and multinational environments
Top Talent Hubs	Vienna, Graz, Linz, Innsbruck
Key Industries	Engineering, IT, Finance, Life Sciences, Clean Energy

Popular job portals for hiring in Austria include Monster.at (most active by applications and postings), StepStone, LinkedIn, Glassdoor, and The Local Jobs.

Employment Law Essentials in Austria

Austrian employment is governed by four primary statutes: the Arbeitsverfassungsgesetz (ArbVG), which is the Labour Constitution Act; the AVRAG, or Employment Contract Law Adaptation Act; the Arbeitszeitgesetz, which is the Working Hours Act; and the Arbeitsruhegesetz, which is the Rest Periods Act.

Employment Contracts

The Arbeitsvertragsrechts-Anpassungsgesetz (AVRAG) governs individual contract terms in Austria. If no written contract exists, the employer must immediately issue a Dienstzettel listing the employee's name, start date, job duties, salary, working hours, notice periods, and the applicable CBA reference. Failure to issue a compliant Dienstzettel carries statutory fines. Gloroots issues compliant bilingual contracts and Dienstzettel where required.

Working Hours and Overtime

The Arbeitszeitgesetz sets the standard 40-hour working week. CBAs in metals, banking, and white-collar sectors reduce this to 38 or 38.5 hours. The Arbeitsruhegesetz mandates a minimum 11-hour rest period between workdays.

Minimum Wage and 13th/14th Month Payments

Austria has no national statutory minimum wage. Sector-specific CBAs set binding minimums, with most ranging from EUR 1,700 to EUR 2,000 gross per month.

Most Austrian CBAs also require a 13th month payment, known as Urlaubsgeld (holiday bonus), paid in June or July, and a 14th month payment, known as Weihnachtsgeld (Christmas bonus), paid in November or December. Both are standard obligations across most sectors and must be included in payroll cost calculations.

Anti-discrimination in employment is governed by the Gleichbehandlungsgesetz 2004, which protects employees on grounds of gender, ethnic origin, religion or belief, age, and sexual orientation. Enforcement is handled by the Equal Treatment Commission.

Leave and Statutory Benefits in Austria

Austrian law provides a structured set of leave entitlements covering annual leave, sick leave, maternity and paternity leave, and public holidays. Entitlements are set by statute and, in many cases, extended by applicable CBAs.

One important rule applies during annual leave: if an employee falls ill for more than three calendar days while on annual leave, those days do not count as annual leave. The employee must notify the employer promptly and provide a medical certificate. The affected days are then treated as sick leave.

Leave entitlements table

Leave type	Entitlement	Pay rate	Key conditions
Annual leave	25 working days per year (after 6 months); 30 days after 25 years of service	Full pay	Illness exceeding 3 calendar days during leave converts those days to sick leave; medical certificate required
Sick leave	6 to 12 weeks employer-paid, depending on tenure; statutory health insurance covers thereafter	Full pay (employer period); statutory benefit after	Tenure determines duration; certificate required
Maternity leave	16 weeks (8 weeks before and 8 weeks after birth)	Statutory maternity benefit	Mandatory; employment protection applies
Paternity leave	1 month unpaid; additional parental leave available	Unpaid (daddy month); parental allowance may apply	Must be agreed with employer
Parental leave	Up to 2 years	Childcare allowance (Kinderbetreuungsgeld)	Available to both parents; flexible models apply
Public holidays	13 national holidays	Full pay	Work on public holidays attracts 200% pay or time off in lieu

Annual Leave

Employees receive 25 working days of annual leave per year after six months of service, rising to 30 days after 25 years. If illness lasts more than three calendar days during annual leave, those days revert to sick leave. The employee must notify the employer and submit a medical certificate.

Sick Leave

Austrian law requires employers to continue paying full salary during sick leave. The duration of employer-paid sick leave depends on tenure: employees with less than five years of service receive six weeks of full pay; those with five to fifteen years receive eight weeks; those with fifteen to twenty-five years receive ten weeks; and those with more than twenty-five years receive twelve weeks. After the employer-paid period ends, statutory health insurance (Krankengeld) covers the employee.

Maternity and Paternity Leave

Maternity leave in Austria covers 16 weeks: 8 weeks before and 8 weeks after birth. During this period, the statutory health insurance fund pays Wochengeld (maternity allowance) directly to the employee, not the employer.

After the protected leave period, parents may claim Kinderbetreuungsgeld, a state-funded parental leave allowance, for up to 24 months. Fathers are entitled to one unpaid "daddy month" plus shared parental leave options.

Public Holidays

Austria observes 13 national public holidays: New Year's Day (1 Jan), Epiphany (6 Jan), Easter Monday, Labour Day (1 May), Ascension Day, Whit Monday, Corpus Christi, Assumption (15 Aug), National Day (26 Oct), All Saints' Day (1 Nov), Immaculate Conception (8 Dec), Christmas Day (25 Dec), and St Stephen's Day (26 Dec).

Payroll, Tax and Statutory Contributions in Austria

Austrian payroll runs monthly, with salaries typically paid at month-end. Employers must also pay a 13th month (holiday bonus) and 14th month (Christmas bonus) each year, both required under most collective bargaining agreements.

All payroll reporting is filed electronically through ELDA, Austria's mandatory payroll reporting portal. Monthly filings are required. Missing deadlines triggers penalty assessments from the tax authority and ÖGK, the mandatory health insurance registration body.

The corporate income tax rate is 23% following the 2024 reform, reduced from the prior 25% rate.

Income Tax Brackets (2026)

Taxable Income (EUR)	Rate
Up to 13,539	0%
13,540 to 21,617	20%
21,618 to 35,836	30%
35,837 to 69,166	42%
69,167 to 103,072	48%
103,073 to 1,000,000	50%
Above 1,000,000	55%

Employer and Employee Statutory Contributions

Contribution	Employer	Employee
Pension	12.55%	10.25%
Health (ÖGK)	3.78%	3.87%
Unemployment	3.00%	3.00%
Accident Insurance	1.30%	0.10%
Miscellaneous Funds	~1.00%	N/A

Work Visas and Permits in Austria

Austria issues several work authorisations for non-EU nationals. The Red-White-Red (RWR) Card is the primary permit, valid up to two years. The EU Blue Card applies to highly skilled professionals and requires a gross annual salary of at least EUR 55,678 in 2026, inclusive of 13th and 14th month payments.

Spouses of RWR Card and EU Blue Card holders receive an RWR Card Plus, which grants unrestricted access to the Austrian labour market without a separate work permit. After 21 of 24 months on an EU Blue Card, the holder may upgrade to an RWR Card Plus, valid for three years, removing the employer-specific restriction.

On termination of a work permit holder, the employer must deregister the employee with ÖGK via ELDA within seven days and notify the relevant municipality.

Visa Types (2026)

Visa Type	Purpose	Validity	2026 Fee
Schengen Visa C	Short-stay travel and business	Up to 90 days	EUR 90 (adults) / EUR 45 (children 6-12)
National Visa D	Long-stay entry	Up to 180 days	EUR 100
Red-White-Red Card	Skilled non-EU worker employment	Up to 2 years	EUR 160 total (EUR 120 application + EUR 20 granting + EUR 20 personalisation)
Job Seeker Visa	Qualified professionals seeking work	Up to 6 months	EUR 120

Equity and ESOP Consulting in Austria

Equity compensation is increasingly common in Austria, particularly across the growing technology and biotech sectors in Vienna and Graz.

Austrian tax treatment of employee stock options is complex. Options are typically taxed as employment income at the point of exercise. The applicable collective bargaining agreement may also affect vesting plan design, and specialist legal and tax advice is recommended before implementing any equity programme.

Gloroots supports employers in understanding local equity obligations as part of its Employment Lifecycle Management offering, ensuring contracts and payroll reflect any equity-related income correctly.

Misclassification Risk in Austria

Austrian law imposes strict rules distinguishing employees from independent contractors, and misclassification exposes companies to significant retroactive financial and legal liability.

Austrian authorities assess the actual working relationship, not the contract label. A worker is likely classified as an employee if:

• They follow employer instructions on work tasks, location, or working hours on an ongoing basis.
• They are integrated into the employer's organisational structure and use company-provided equipment or systems.
• They receive fixed periodic payments rather than invoicing per deliverable or project outcome.
• They work exclusively or predominantly for one client over an extended period without independent business activity.

Penalties for misclassification in Austria include:

• Retroactive payment of all unpaid social contributions, covering both the employer and employee shares, plus interest.
• Back payment of statutory entitlements including annual leave, overtime, and sick pay for the full misclassified period.
• Administrative fines issued by labour and tax authorities, which can accumulate per affected worker per year.
• Civil claims from the worker and reputational exposure following labour authority audits or court proceedings.

Engaging workers through Gloroots as employees under a compliant employment contract removes the misclassification risk entirely, as Gloroots acts as the legal employer of record.

Hiring, Onboarding, Termination and Offboarding in Austria

Austria's labor framework sets clear obligations at every stage of the employment lifecycle. Employers must follow statutory notice periods, CBA requirements, and social insurance filing rules from day one through final offboarding.

Statutory notice periods by employer tenure are as follows:

Tenure Band	Notice Period
Up to 2 years	6 weeks
3rd–5th year	2 months
6th–15th year	3 months
16th–25th year	4 months
26th year onwards	5 months

CBAs may extend these statutory minimums. Termination must comply with the ArbVG and the applicable CBA for the employee's sector.

When a work permit holder's employment ends, the employer must deregister the employee with the Österreichische Gesundheitskasse (ÖGK) via ELDA within 7 days and notify the relevant municipality. Late deregistration carries administrative penalties.

Gloroots manages each phase of the employment lifecycle through its Austrian entity, covering contract issuance, payroll, statutory filings, and offboarding documentation under a single governance layer.

Onboarding

• Before Day One: Register the employee with ÖGK via ELDA before the first working day. Issue a compliant German-language contract or Dienstzettel. Confirm the applicable CBA and encode payroll rules. Prepare bilingual onboarding documentation.
• Day One: Complete health and safety induction. Assign equipment and system access. Provide workplace orientation. Confirm probation terms in writing.
• First Week: Verify payroll setup and first payslip accuracy. Confirm CBA-mandated allowances are encoded. Introduce the employee to the HR contact and escalation path.
• Beyond: Track probation period end (up to 1 month). Schedule the first performance check-in. Confirm 13th month payment timing per the applicable CBA.

Termination

Termination must comply with the ArbVG and the applicable CBA. CBAs frequently extend statutory notice periods beyond the minimums set by law.

Offboarding

• Settlement: Calculate final payroll including unused leave, overtime, and prorated 13th and 14th month payments. Coordinate the Abfertigung Neu fund payout. Issue the final payslip.
• Documents: Issue the employment certificate (Dienstzeugnis) in German. Provide bilingual exit documentation. Confirm IP and data handover with the departing employee.
• Exit: Deregister the employee with ÖGK via ELDA within 7 days of termination. Notify the municipality if the employee holds a work permit. Revoke system access and collect company equipment.

What's New: Recent Regulatory Changes in Austria

Austria reduced its corporate income tax rate from 25% to 23% under the Körperschaftsteuergesetz reform effective 2024, directly affecting employer cost modelling for entity-based operations.

• The updated 23% CIT rate changes net cost projections for employers running an Austrian entity.
• Income tax bracket adjustments effective 2026 affect payroll withholding calculations for all employers.
• The FlexCo entity type, introduced in 2024, provides a startup-friendly alternative to the standard GmbH structure.
• The EU Blue Card salary threshold has been updated to €55,678 for 2026.
• ELDA reporting obligations remain monthly with no grace period changes.

Employers and EOR providers must verify that payroll systems reflect the 2026 bracket thresholds and the updated 23% CIT rate.

Quarterly review owner: HR/Finance lead. Next review due: Q1 2026.

Costs and Financial Planning for Hiring in Austria

Hiring in Austria involves costs beyond base salary. Employer social contributions add approximately 20–22% of gross salary, covering pension, health, unemployment, and accident insurance.

Hidden costs require careful planning. The 13th and 14th month payments add the equivalent of two additional monthly salaries per year. CBA-mandated allowances vary by sector and can be material. ELDA filing penalties apply for late remittance with no grace period.

Corporate income tax is now 23% (reduced from 25% in 2024), which affects net cost modelling for employers operating through a direct entity. Companies comparing entity costs with EOR costs should factor in this updated rate. For a parallel comparison in another major European market, see our employer of record UK guide.

Cost Element	Direct Entity	Gloroots EOR
Employer social contributions	~20–22% of salary; employer manages filings	Gloroots calculates and remits contributions
13th and 14th month payments	Employer tracks CBA obligations per sector	Gloroots encodes CBA rules into payroll
Corporate income tax	23% CIT; employer files annual return	Not applicable; no entity required
ELDA filing penalties	Employer bears risk of late remittance	Gloroots manages monthly filings on schedule
Setup and compliance overhead	Legal fees, share capital, ongoing filings	Predictable monthly EOR fee; no setup cost

Common Challenges and How Gloroots Solves Them in Austria

Hiring in Austria involves specific procedural requirements that catch many foreign employers off guard, particularly around social insurance registration, payroll encoding, and documentation obligations.

Challenge	How Gloroots Solves It
ELDA filing deadlines: Employers must submit social insurance data electronically via ELDA before an employee's first working day. Late or missing filings trigger penalties from the Austrian Health Insurance Fund (ÖGK).	Gloroots files all ELDA submissions through its own Austrian-registered entity, ensuring pre-start registration is completed on time for every hire.
Dienstzettel compliance: When no formal written contract is issued, employers must provide a Dienstzettel covering role, salary, working hours, notice periods, and the applicable CBA reference. Missing fields result in fines.	Gloroots generates bilingual Dienstzettel documents that meet AVRAG requirements, covering all mandatory fields before the employee's start date.
ÖGK pre-start registration: Employees must be registered with the ÖGK before their first day of work, not after. Many foreign employers miss this requirement and face retroactive contribution liabilities.	Gloroots manages ÖGK registration as part of its standard onboarding process, with confirmation issued before the employee begins work.
13th and 14th month payroll encoding: Most Austrian CBAs require a holiday bonus (13th month) and a Christmas bonus (14th month). These must be encoded correctly in payroll to avoid underpayment and CBA breach.	Gloroots encodes both bonus payments into the payroll schedule at onboarding, aligned to the applicable CBA calendar and payment triggers.

Why Gloroots Is a Strong EOR Partner in Austria

Gloroots is best suited for companies that have no Austrian entity, are testing the Austrian market before committing to a GmbH or FlexCo, or need to scale a team quickly without the overhead of full incorporation.

Gloroots holds its own Austrian-registered legal entity, which enables direct ÖGK registration and ELDA filing without relying on third-party intermediaries. The platform covers CBA expertise across engineering, IT, life sciences, and finance, and generates bilingual contracts and Dienstzettel documents in German and English.

Companies expanding across Central Europe can also review employer of record Poland for a comparable multi-country hiring approach.

Gloroots employs Austrian workers compliantly from day one, without requiring share capital or local directors.

The platform fits companies that need a single employee in Vienna or a team of ten in Graz, with the same compliance coverage in both cases.

Before selecting a provider, buyers should confirm that the EOR holds a direct Austrian entity, not a partner arrangement, since only a registered Austrian entity can file with ELDA and sponsor work visas directly.

Conclusion

Austria's 13 national public holidays, CBA-mandated 13th and 14th month bonus payments, and the ÖGK pre-registration requirement make payroll compliance genuinely complex without local expertise.

Before making a hiring decision, verify the collective bargaining agreement that applies to your employee's role, confirm that your chosen provider can file directly via ELDA, and model total employment cost to include both annual bonus payments. Those three steps reduce the most common compliance gaps for foreign employers entering Austria.

Frequently Asked Questions About Employer of Record in Austria

Is it legal to use an Employer of Record in Austria?

Yes, EOR is a fully legal employment model in Austria. The EOR becomes the legal employer under Austrian law, issuing compliant contracts and managing payroll, while the client company directs the employee's work. Austrian labour law and CBAs apply in full.

How much does an EOR in Austria cost?

EOR costs in Austria typically include a monthly per-employee fee plus the employee's gross salary and employer social contributions of approximately 20 to 22%. The 13th and 14th month CBA payments add roughly two additional monthly salary payments per year to the total cost. Gloroots' pricing starts from $199/employee/month.

How quickly can I hire an employee in Austria through an EOR?

An EOR can onboard an employee in Austria in 2 to 5 days, compared to 6 to 10 weeks to incorporate a GmbH or FlexCo entity. The EOR handles ÖGK registration via ELDA before the employee's first day, so work can begin immediately after contract signing.

What employee benefits are mandatory in Austria?

Mandatory benefits include 25 days annual leave (30 after 25 years of service), 13 public holidays, 6 to 12 weeks of employer-paid sick leave depending on tenure, 16 weeks of maternity leave, and monthly Abfertigung Neu severance contributions of 1.53%. Most CBAs also require 13th month holiday bonus and 14th month Christmas bonus payments.

What is the difference between an EOR and a PEO in Austria?

An EOR becomes the legal employer and is the correct model when you have no Austrian entity. A PEO operates alongside your existing Austrian entity, where you remain the legal employer. If you already have a GmbH or FlexCo registered in Austria, a PEO arrangement may be more appropriate.

Can an EOR sponsor work visas in Austria?

Yes, but only if the EOR holds its own Austrian-registered legal entity. Only Austrian-registered entities can sponsor Red-White-Red Cards, EU Blue Cards, and ICT permits. The EOR manages the full application process, including contract preparation, labour market test compliance, and renewals, typically within 6 to 12 weeks.

What is the Dienstzettel and when is it required in Austria?

A Dienstzettel is a written statement of employment terms required under AVRAG when no formal written contract is issued. It must list the employee's name, start date, job duties, salary, working hours, notice periods, and the applicable CBA reference. Failure to provide it results in fines.