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Minimum wage in Austria

Austria's payroll

Statutory benefits in Austria

Other employee benefits in Austria

Compliant, seamless payroll and benefits in Austria and beyond

Payroll and benefits in Austria

As in all countries, running payroll in Austria requires a certain knowledge of the country’s rules, regulations and cultural norms. For example, employers need to understand how taxes and social security contributions work in Austria to ensure they meet their obligations. Austria is also unusual in that it does not have a federal minimum wage. However, there are still industry-level minimums and an effective country-wide minimum that employers must abide by (or face fines).

In this section, we’ll cover everything you need to know about payroll and benefits in Austria. This includes the benefits that are covered by the social security system and those that employers must provide to their employees directly. We’ll also discuss the minimum wages that employers must be aware of, and provide general information on the process of running monthly payroll in Austria.

Minimum wage in Austria

There is no federal statutory minimum wage in Austria. However, most employees are covered by collective bargaining agreements that set minimum pay levels for specific sectors or occupations. In addition, an agreement negotiated by Austria’s social partners established a minimum wage benchmark applicable across industries, which is currently set at EUR 1,700 gross per month for full-time employees. Although not a formal national minimum wage, this amount functions as an effective wage floor and employers who pay below this level may face penalties.

Minimum wage in Austria per hour, week, and year

Employees in Austria typically receive 14 salary payments per year, consisting of 12 monthly salaries plus holiday and Christmas bonuses. Based on the current benchmark of EUR 1,700 per month, the effective annual minimum salary amounts to:

EUR 23,800 per year (14 payments)
EUR 457.69 per week
EUR 11.44 per hour

These figures are calculated for a full-time employee working 40 hours per week, although the same monthly minimum applies to employees working under standard 38-hour collective agreement conditions.

What counts towards the minimum wage in Austria

Basic salary, overtime payments, bonuses and idle-time compensation count towards the minimum wage. Tax-exempt allowances — such as per-diems, housing, transportation and meal benefits — cannot be included when determining minimum wage compliance and must be provided in addition to salary.

Average salary in Austria

Salaries in Austria are generally high compared to other European countries, with many employees earning significantly more than the minimum wage benchmark. The median gross annual income for all employees remains above the minimum level, and full-time workers typically earn substantially higher annual amounts depending on role, industry, qualifications and experience.

Minimum wage by sector in Austria

Minimum wage levels vary widely across sectors, with each collective agreement setting its own salary structure. Factors such as job classification, seniority and shift patterns affect pay levels. Some sectors traditionally have higher average earnings, including manufacturing, information and communication technology, and education, while others such as hospitality and food service may operate closer to minimum thresholds.

Minimum wage in Austria after tax

Minimum wage figures in Austria are stated before taxes and statutory payroll deductions. Net take-home pay varies depending on tax category, social security contributions and other deductions. Employees earning the minimum wage will receive a lower net annual income once contributions are applied.

Austria's payroll

Every country has its own rules and requirements when it comes to running payroll — read on for what you need to know about the situation in Austria.

General requirements for payroll in Austria

The payroll cycle in Austria is monthly. Employees must generally be paid by the last working day of the month unless an applicable collective bargaining agreement stipulates otherwise. The tax year is the same as the calendar year, and the currency is the euro (EUR).

Income tax in Austria

Individuals who are resident in Austria are subject to tax on their worldwide income. For non-residents, only income earned from certain sources is taxable in Austria. Employers in Austria are responsible for withholding the correct amount of income tax from each employee’s wages and paying it to the tax authorities by the 15th of each month.

Income tax is charged on a progressive scale depending on income level, as follows:

Below EUR 12,816: 0%.
Between EUR 12,816 and EUR 20,818: 20%.
Between EUR 20,818 and EUR 34,513: 30%.
Between EUR 34,513 and EUR 66,612: 40%.
Between EUR 66,612 and EUR 99,266: 48%.
Between EUR 99,266 and EUR 1,000,000: 50%.
More than EUR 1,000,000: 55%.

Social security contributions in Austria

Both employers and employees in Austria are required to make contributions to the country’s social security system. These add up to 20.98% of the employee’s wages for the employer and a maximum of 18.07% for the employee.

Here’s how that breaks down for employers:

Health insurance: 3.78%.
Unemployment insurance: 2.95%.
Pension contribution: 12.55%.
Accident insurance: 1.1%.
Miscellaneous: 0.6%.

Employers also have to pay the insolvency charge (IESG) (0.1%) and into a severance pay fund (1.53%).

For employees, the rates are as follows:

Health insurance: 3.87%.
Unemployment insurance: 0–2.95% (depending on income).
Pension contribution: 10.25%.
Miscellaneous: 1%.

Employers must file social security statements on a monthly basis. The deadline for filing is the 15th of each month, and payment is due by the 15th of the following month.

13th and 14th salary payments in Austria

Employees in Austria are entitled by law to 14 salary payments per year. The 13th and 14th payments are made at the end of June and the end of November, and function as holiday and Christmas bonuses. These additional payments are taxed at a much lower rate than normal salary (6%).

Other payroll requirements in Austria

Employers in Austria must provide employees with a payslip at the end of each pay period. The payslip must contain at least the following information:

Gross salary.
Calculation of social security contributions.
Withheld social security contributions.
Taxable income (gross income minus social security).
Withheld income tax.
Contributions to Severance Pay Fund.
Deducted family allowance.

Employers must also maintain payroll records for at least seven years.

Statutory benefits in Austria

Employees in Austria are entitled to many benefits through the country’s social security system. There are also other benefits that Austrian employers are required to provide to employees directly.

Social security benefits in Austria

The social security system in Austria covers the following:

Sickness.
Incapacity for work/invalidity.
Maternity.
Unemployment.
Old age (pensions).
Death of a person responsible for providing maintenance.
Survivors’ pension.
Nursing care.
Social assistance.

This is paid for through contributions from both employees and employers, totalling around 40% of an employee’s salary. Payments are made to various insurance bodies, including:

Sickness insurance: The General Accident Insurance Institute (Allgemeine Unfallversicherungsanstalt, or AUVA).
Unemployment insurance: The Employment Service (Arbeitsmarktservice, or AMS).
Pensions: The Pension Insurance Office (Pensionsversicherungsanstalt, or PVA).

Mandatory employer-provided benefits in Austria

In addition to social security benefits in Austria, employers are obliged to provide some benefits directly. These include:

Overtime: Any work above 40 hours is considered overtime in Austria (or 38 hours according to some collective agreements). It must be paid at a rate of at least 150% of the employee’s normal salary.
Bonuses: Employees are entitled to two additional salary payments, paid at the end of June and the end of November.
Annual leave: Employees in Austria are all entitled to a certain amount of annual leave. Their exact entitlement depends on their length of service, with the maximum entitlement set at six weeks (30 working days).
Sick leave: Employees are also entitled to paid time off work when they are sick. Entitlement varies based on the employee’s length of service.
Maternity and parental leave: Lastly, employees are entitled to time off work when they or their partner has a baby. They also benefit from special protections from dismissal while on maternity, paternity, or parental leave.

Other employee benefits in Austria

Employers in Austria can also offer additional benefits to their employees. Even if these aren’t required by law, they can help to attract and retain employees and improve morale and engagement. Here are some of the most popular additional employee benefits in Austria.

Private health insurance in Austria

Austria has a high-quality public healthcare system funded by employer and employee contributions. However, employers can still choose to offer private healthcare as an employee benefit in Austria. Private healthcare is typically used as a supplement to the public system.

Flexible work hours in Austria

Flexible working hours can be a valuable employee benefit in Austria. For example, some employers require employees to cover ‘core’ hours in the middle of the day but start and finish work at a time of their choosing. Others may offer total flexibility in when work is completed, as long as employees complete the tasks assigned to them.

Company care and transportation allowances in Austria

It’s common to provide employees with a transportation allowance of around EUR 30 per month. In some companies, employees may be offered the use of a company car. This results in an increase in the assessment base for income tax and social security.

Additional leave in Austria

Employers in Austria can also choose to offer their employees additional annual leave, sick leave, maternity, or paternity leave, for example. This can help employees to maintain a healthy work-life balance, making it a valuable benefit.

Childcare benefits in Austria

Large employers in Austria often provide workplace nurseries where employees can drop off their children while they work. Others grant their employees financial benefits to cover the cost of childcare instead.

Health and wellness benefits in Austria

Some employers offer health, fitness, and wellness benefits to help their employees look after themselves. Such benefits might include subsidised gym memberships, free fitness classes, or even subsidised vaccinations and healthcare checks organised in the workplace.

Education and training benefits in Austria

Education and training benefits are a great way for Austrian employers to show employees they are valued. Depending on the needs of their employees, employers may cover course fees, allow employees to study during working hours, and even award bonuses for passing exams.

Compliant, seamless payroll and benefits in Austria and beyond

Getting payroll and benefits right is not just a legal issue. Every country also has its own customs, norms and expectations about employee compensation. And if your operations aren’t in line with your workers’ expectations, they may not stick around for long.

Thankfully, we know what we’re doing. When you work with CXC to engage workers in Austria, we’ll handle everything from tax withholding to employee bonuses on your behalf.

Want to find out more?

Read about EoR services

FAQ's

How does payroll work in Austria?

Payroll is usually run monthly, with the employer calculating gross pay, deductions and the employee’s net amount. Payroll in Austria must reflect the employment contract, the applicable collective agreement and any changes during the pay period, such as overtime, leave, bonuses or expenses.

The employer withholds wage tax and the employee share of social insurance, then adds the employer contributions. Employees receive a payslip showing how their pay was calculated. The payslip must show the composition of the remuneration, statutory deductions, payment amount and the assessment bases for wage tax and compulsory social insurance. Salary, tax and social insurance payments must reach the right recipients by the relevant deadlines.

Most payrolls also need to account for holiday and Christmas payments, commonly called the 13th and 14th salaries, when the governing collective agreement or contract provides them. Employers submit monthly social insurance reports and annual wage information, while keeping supporting records. The monthly contribution-basis report must generally be submitted through ELDA by the 15th of the following month, and the electronic annual wage statement must normally be filed by the end of February of the following year. A reliable process brings HR, time data, payroll approvals and finance together before each monthly cut-off.

How do you set up payroll in Austria?

Setting up Austria payroll starts with confirming who the legal employer is and which registrations that employer needs. The business normally requires a tax record, a contribution account with the health insurance provider and access to ELDA, the electronic system used for social insurance reporting.

The next step is to identify the correct collective agreement and job classification. These determine important inputs such as minimum pay, normal working hours, overtime rates and special salary payments. Employee details, bank information, tax data, social insurance numbers and agreed benefits must then be loaded into suitable payroll software or provided to a local partner.

Before the first run, the team should set a payroll calendar, approval process and funding timetable. Employees must be registered for social insurance before they start work. The monthly contribution-basis report and related social insurance payments are generally due by the 15th of the following month. Test calculations and clear checks between HR, payroll and finance help catch errors before payment. Foreign employers may also need local tax and social insurance registrations even without a subsidiary. The precise requirements depend on matters including the employee’s work location, the applicable social security system and whether the employer has an Austrian wage-tax permanent establishment.

Can a foreign company run payroll without a local entity in Austria?

Yes. A foreign company can employ and pay an employee in Austria without setting up a local entity, but it may still need to register as a foreign employer and meet Austrian payroll and social insurance requirements.

This can include registering with the relevant Austrian authorities, setting up social insurance reporting, calculating employee deductions and determining whether Austrian wage-tax withholding applies, applying the correct collective agreement and providing compliant payslips. A foreign employer with an Austrian wage-tax permanent establishment generally must withhold wage tax. Where no such establishment exists, Austrian wage-tax withholding may not be mandatory, but voluntary withholding, annual wage reporting and employee tax-assessment obligations may still need to be considered.

For companies that do not want to manage these registrations and payroll requirements directly, another option is to use an Employer of Record (EOR). The EOR employs the worker in Austria and handles the local employment contract, payroll, tax, social insurance and employment administration. Where the employee works under the client’s direction and is integrated into its business, the arrangement will generally need to comply with Austria’s labour-leasing rules.

What payroll taxes and contributions must employers pay in Austria?

Employers in Austria pay contributions for pension, health, unemployment and accident insurance, as well as the employee provision fund, Family Burdens Equalisation Fund, municipal tax and Chamber of Commerce surcharge.

Employer social insurance contributions are generally around 21% of gross salary. For a standard employee, the ordinary employer social insurance rate is generally 20.98% in 2026, subject to the applicable contribution ceiling and any employee-specific adjustments. The monthly maximum contribution base is EUR 6,930 in 2026, with a separate annual ceiling of EUR 13,860 for special payments.

Employers also pay 1.53% to the employee provision fund, 3.7% to the Family Burdens Equalisation Fund, 3% municipal tax and a surcharge to the employer contribution, commonly called the DZ or Wirtschaftskammer-Umlage 2,that varies by province. For 2026, the DZ generally ranges from 0.31% to 0.40%, depending on the province.

Employers are also responsible for withholding the employee’s share of social insurance and wage tax from their salary and paying these amounts to the relevant authorities. The standard employee social insurance rate is generally 18.07% in 2026, although the employee unemployment-insurance contribution is reduced for lower earnings and special rules can apply.

Rates and contribution ceilings are updated periodically, so payroll calculations should use the rates in force for the relevant pay period.

How much does it cost to run payroll in Austria?

Outsourced payroll in Austria typically costs around USD 30 to USD 50 per employee per month, excluding salary and statutory employer costs. This is an indicative commercial estimate rather than a statutory or regulated fee. Minimum monthly charges can make the effective per-employee cost higher for small teams.

The final fee varies based on the number of employees and services included. Providers may charge separately for setup, year-end processing, off-cycle payroll runs, benefits administration, integrations or additional employee support.

Employers must also budget for gross salary, employer social insurance contributions, payroll levies, the employee provision fund and any additional salary payments required under the applicable collective agreement. For standard employees, the total employer cost will therefore be materially higher than gross salary once social insurance, the 1.53% severance contribution, DB, DZ and municipal tax are included.

For an accurate comparison, check what is included in the monthly payroll fee and whether there are separate setup, processing or minimum monthly charges. The quote should also explain whether collective-agreement updates, 13th and 14th salary processing, expense reimbursements, employee registrations, annual reporting and termination calculations are included.

What mandatory employee benefits are required by law in Austria?

Mandatory employee benefits in Austria include social insurance, paid annual leave, paid sick leave, paid public holidays, maternity and parental leave, and statutory severance contributions.

Social insurance provides coverage for healthcare, pensions, unemployment and workplace accidents. Employers must also contribute to the Abfertigung Neu severance scheme for eligible employees. Maternity protection and parental leave include statutory employment protections, but they should not be treated as ordinary employer-funded paid leave. Maternity allowance and certain other family benefits are generally provided through the social insurance or state-benefit system, while statutory parental leave is normally unpaid by the employer.

Employees may have additional mandatory benefits under the collective agreement that applies to their role or industry. For example, 13th and 14th salary payments, commonly known as holiday and Christmas pay, are not required by one general statutory rule but are provided under many Austrian collective agreements and therefore become mandatory for covered employees.

Employers may also offer benefits above these requirements, such as private health insurance, meal allowances or additional paid leave.

What are the 13th and 14th salary payments in Austria?

The 13th and 14th salaries in Austria are additional payments commonly paid as holiday pay and Christmas pay, usually on top of an employee’s 12 regular monthly salaries.

Employees commonly receive the 13th salary around June and the 14th salary around November. However, the terminology and payment sequence can vary: some collective agreements refer to the Christmas payment as the 13th salary and the holiday payment as the 14th. The exact amount, payment date and eligibility are set by the applicable collective agreement or employment contract. Employees who work only part of the year may receive a proportionate amount.

These payments are not required under one general law for every employee, but they are included in many Austrian collective agreements and are therefore mandatory for employees covered by those agreements. Where no collective agreement applies and the employment contract does not provide for special payments, the employee does not automatically have a statutory right to them.

The 13th and 14th salaries may also receive preferential tax treatment within statutory limits and are included in payroll and social insurance calculations. Preferential wage-tax treatment is generally limited by the annual one-sixth rule and other statutory conditions, so not every special payment is automatically taxed at the reduced rate.

What is the minimum wage in Austria?

There is no single national minimum wage in Austria. Minimum pay is set mainly through sector-level collective agreements, which usually contain salary tables based on the employer’s industry, the role, the employee’s classification and sometimes length of service.

The correct rate cannot be found by checking one national figure. An employer first identifies the collective agreement that covers the business, then matches the job to the correct group and pay level. The agreement may also provide for scheduled increases, experience steps, allowances and higher rates for overtime or working patterns.

Where no collective agreement applies, pay is agreed in the employment contract, subject to general rules against unfair or exploitative terms. Job advertisements must normally state the applicable minimum pay and indicate when the employer is willing to pay more than that minimum. The advertised figure does not replace the employer’s obligation to apply the correct collective agreement and classification when employment begins.

Because collective rates are revised regularly, payroll and recruitment data should be checked against the current agreement before an offer or pay change is approved.

What is the Abfertigung Neu and how does it affect payroll costs in Austria?

Abfertigung Neu (new severance scheme) is an employer-funded savings system for employees whose employment began on or after 1 January 2003. Since 1 January 2008, it has also covered qualifying free service contractors subject to compulsory social insurance. It adds a regular 1.53% contribution to payroll in Austria, calculated on monthly remuneration and any special payments.

The first month of employment is generally contribution-free. After that, the health insurance provider collects the amount and passes it to the occupational pension fund chosen by the employer. The balance belongs to the employee and moves with them between jobs rather than restarting with each employer.

The official severance scheme guidance explains when an employee can take payment or leave the balance invested. Three contribution years are normally needed before cash disposal, with periods across employers combined. Even where immediate payment is unavailable, the accumulated capital is preserved. Employers should include the contribution when forecasting total employment cost, including months with covered special salary payments.

What payroll services does CXC provide in Austria?

CXC provides payroll services in Austria, with the ability to pay workers in their local currency and consolidate payments into a single invoice in the client’s preferred currency.

With payroll services across 100+ countries, businesses can manage workers in Austria alongside teams in other markets through one provider. CXC supports weekly, fortnightly and monthly payment cycles for workers paid hourly, daily or monthly.

We also manage timesheets and approvals through our online system, along with payroll administration, taxes and local payment requirements.

This gives global businesses a simpler way to manage payroll across multiple countries without working with a separate payroll provider in every market.

Speak to our team to learn more about payroll services in Austria with CXC.

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