Austria has a small, but well-developed economy with a highly globalized and skilled labor force. The major components of the economy include manufacturing, engineering, and luxury goods production. 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 regulations in Austria change each year, so it’s important to stay ahead of the new requirements. 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
- There is no federal minimum wage, but the government has negotiated with the social partnerships to ensure a minimum wage across the country 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
Payroll reporting each month includes social security, wages and taxes that must be filed by the 15th of each month following payroll. Payroll funding in Austria is flexible, allowing companies to pay employees with or without a local bank account. Blue Marble provides money movement services to make payroll funding easy and affordable, so you can fund payroll in USD and we settle in the local currency.
If you are just getting started in Austria, or need to simplify operations, we can help. Blue Marble has one cloud-based platform to manage payroll across all countries and currencies. With customized reporting and real-time access to payroll, you can easily ensure compliance in Austria. Our hybrid service model gives you a dedicated US team and in-country experts in Austria when questions come up. Learn how easy payroll can be in Austria: click here to learn more