Austria has a small but well-developed economy with a highly globalized and skilled labor force. Austria regulations allow for easy accessibility to start a business by foreign investors, but there are many steps required 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.

Payroll and Tax Considerations

  • There is no statutory minimum wage, but collective agreements must stipulate a minimum wage of at least EUR 1,500 per month
  • Oral employment agreements are legal, but employers must provide a written employment summary with all important aspects of the work
  • Employers must pay a severance allowance when a contract is terminated. During employmetn the employer must pay 1.53% of the employee gross salary to a severance payment fund
  • The retirement age is 65 for men and 60 for women if they have paid insurance contributions for 180 months (15 years)
  • There is a compulsory social insurance coverage
  • Both employers and employees contribute to social security
  • Foreign workers who are not nationals of the European Economic Area (EEA) or Switzerland need a work and residency permit

HR and Statutory Requirements

  • All employees who have worked for at least 6 months are entitled to annual paid leave of 30 working days. Those who have 26 or more years of service with one employer have an entitlement to 36 working days of annual leave
  • Employees who are sick or injured may take paid sick leave for a minimum of 6 weeks and a max of 12 weeks. After 12 weeks they may take an additional 4 weeks of leave at half pay
  • Maternity leave is generally 16 weeks. Eight weeks can be taken before the birth
  • Paternity leave is 1 month (28-31 days) and must be taken within the first 91 days of the birth of the child

Holidays in Austria

  • January 1 – New Year’s Day
  • January 6 – Epiphany
  • April 18 – Easter Monday
  • May 1 – Labor Day / May Day
  • May 26 – Ascension Day
  • June 6 – Whit Monday
  • June 16 – Corpus Christi
  • August 15 – Assumption of Mary
  • October 26 – National Day
  • November 1 – All Saints’ Day
  • December 8 – Immaculate Conception
  • December 25 – Christmas Day
  • December 26 – St. Stephen’s Day

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