Austria has a small, but very well-developed economy with a highly globalized and skilled labor force. The major components of the economy include manufacturing, engineering, and luxury goods production. Regulations have been minimized to allow easy access to start a business by foreign investors, but there are many steps to begin that can be time-consuming.
All businesses are required to have a trade license. Austrian banks can handle business ventures for small to medium businesses, while the larger corporations partner with international banks. Recent reforms have created tax relief when profits are spent on education or research and development, and taxation is based on a progressive taxed system relative to income.
As of 2019, the unemployment rate is at 4.6%, making Austria an attractive place to expand your business. Payroll and tax regulations change each year, so it’s important to stay ahead of the changes. Here are some labor and payroll considerations in Austria:
- Work contracts can be oral or written
- Employers need to register with the Social Insurance Authority for Business
- Minimum wages vary by industry
- If a Collective Bargaining Agreement does not specify wages, minimum wage is €1500 per month
- Standard work hours are 40 per week
- Employers must register new hires with social security
- Both employers and employees contribute to social security
- Terminated employees must be unregistered from social security and health insurance
- Foreign workers who are not nationals of the European Economic Area (EEA) or Switzerland need a work and residency permit
To get started in Austria, or to simplify operations there, Blue Marble has created cloud-based technology with customized reporting so you can view your payroll in real-time across all countries and currencies. Our in-country experts are here to answer any specific payroll or compliance questions that come up. To learn more or to get started in Austria, click here for more information