Recent developments in Austria
Employment law is always changing, and keeping up with it is a lot of work. Thankfully, our team is always working to stay abreast of the latest changes, so you don’t have to. Here are some of the newest developments in Austria.
Telework/Remote Work Regulation Expanded (2025)
As of 1 January 2025, the Telework Act broadened the legal definition of remote work beyond “home-office.” Employees may now perform regular remote work from coworking spaces, holiday homes, cafés, or any other location not belonging to the employer – provided a written or works-council-level agreement is in place. Employers must reimburse remote-work related expenses or provide flat-rate compensation.
Minimum Wage / Collective Agreement Regime Remains in Effect (2026)
Austria continues to rely on sector-level collective bargaining agreements (CBAs) to set minimum wages and employment conditions. There is no statutory national minimum wage that applies uniformly across all sectors. Employers must verify the applicable CBA for each employee and ensure compliance with its terms.
Strong Coverage of CBAs Across Workforce (Ongoing)
The vast majority (circa 95–98%) of Austrian employees are covered by a collective bargaining agreement. For covered workers, the minimum compensation levels defined in the CBA are legally binding and cannot be undercut by employment contracts.
Adjustments Through Collective Bargaining, Not Statute (2026)
Because wage floors are determined by CBAs, any increases to base pay or minimum salaries will follow collective-bargaining cycles, not statutory annual reviews. This underscores the importance of continuous compliance checks when negotiating or renewing contracts.
Flexible Pay Structures & Redundancy of a “Uniform Minimum Salary” (2026)
Given the diversity of sectors, roles, seniority levels and collective agreements, a single “minimum salary” figure is not legally meaningful in Austria. Employers should adopt a practice of verifying the relevant CBA for each role and applying the corresponding pay scale, allowances and bonuses.
