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All employees who have performed at least 6 months of service are entitled to annual paid leave of 5 weeks (25 days for those working 5 days a week and 30 days for those working 6 days a week). Those who have more than 25 years of service with an employer have an entitlement to 6 weeks for annual leave. Employees are entitled to their usual wages during annual leave.

The holiday entitlement arises pro rata in the first 6 months of the first year of work. After 6 months of service, the holiday entitlement accrues in full in the first year of work. From the second year of work, the employee is entitled to the entire vacation at the beginning of the working year. Annual leave can be split into 2 parts to allow more flexibility but each part must have a duration of at least 6 working days. The entitlement to annual leave expires after 2 years of accrual.

Employees cannot take compensation in place of their annual leave except when dealing with employment termination prior to exercising their annual leave.

In the event of illness, employees are obliged to inform their employer immediately of their inability to work. If the employee is unable to work after starting work due to illness or accident, without being responsible for this intentionally or through gross negligence, they are entitled to continued payment of wages for 6 weeks. Depending on the length of the employment relationship, the entitlement increases to up to 12 weeks.

Employees who remain ill beyond the maximum sick leave period may claim social security benefits. An employer may request that an employee provide written medical confirmation of the illness or injury. No sick pay is due for the first 3 days of incapacity to work. During this period, however, employees are generally entitled to continued payment of wages. From the fourth day of incapacity for work, sick pay is granted as a statutory minimum benefit of 50% of the assessment basis for the calendar day. From the 43rd day of an illness associated with incapacity for work, the sickness benefit increases to 60% of the assessment basis for the calendar day. Sickness benefit is generally granted for a period of up to 26 weeks. The entitlement period increases to 52 weeks if the insured person was insured for 6 months within the last 12 months before the occurrence of the sickness.

Generally, maternity leave lasts 16 weeks: 8 weeks can be prior to birth and 8 weeks after. Although the postnatal period is set at 8 weeks, it may be extended to 12 weeks in the case of premature, multiple, or cesarean births. Other than the 8-week prenatal leave, a pregnant emplpyee may receive leave from work if she provides a certificate from a Labor Inspectorate doctor or another medical officer that her (or her child’s) life and health are endangered if she continues to work.

As soon as they become aware of their pregnancy, expectant mothers must notify the employer of this, stating the expected date of birth. In addition, they are obliged to draw the employer's attention to the beginning of the 8-week period within the fourth week before the beginning of the period.

Family time leave is a 1 month (28-31 days) leave and must be taken within 121 days of the birth of the child. The family time bonus is available to natural, adoptive, foster, permanent nursing, and same-sex fathers (including a woman partner of the mother). To be eligible, fathers must be employed, have valid health and pension insurance for at least 182 days prior to applying for the bonus. They must be living as a family unit at the same address. The benefit is paid at EUR 54.87 (Euros) per day, making a total of around EUR 1,700 per month.

Minimum Wage

In Austria, there are no statutory minimum wage requirements. Minimum wage rates for workers are set in collective agreements. However, all collective agreements must stipulate a minimum wage of EUR 1,700 (Euros) per month, and increases must generally be in line with economic growth. Beyond this minimum, wage rates depend on the length of employment and the classification of work. Most collective agreements provide for minimum wages of at least EUR 1,700 gross, paid 14 times per year.

Overtime, Holiday & Vacation Pay

The Working Time Act stipulates that employers may not assign more than 20 hours of overtime work in a week. Daily working hours must not exceed 12 hours, and weekly working hours must not exceed 60 hours. These limits do not apply to the extension of working hours when on call, or in cases of special recreational opportunities, or in emergency situations.

Overtime work is paid at a premium of 50% over the standard wages of the employee. Employees and employers can agree to compensate overtime with time off instead of wages. The overtime premium must be taken into account when calculating the time off or paid separately. The collective agreement must specify whether compensation is to be provided in cash or as time off. If the collective agreement does not address this, or if no collective agreement applies, the works agreement may establish the rule. If neither agreement contains such a provision, compensation must be paid in cash by default.

Employees working on Sundays or public holidays are compensated with additional pay as determined in their collective agreements.

Notice Period

The length of termination notice periods that an employer must abide by prior to terminating an employee is generally proportionate to the length of employment, regardless of the nature of job, white-collar or blue-collar workers. Notice periods may be established within collective agreements.

The notice period for employees in case of termination by their employer increases with seniority:

• 6 weeks after at least 6 months of service
• 2 months after 2 years of service
• 3 months after 5 years of service
• 4 months after 15 years
• 5 months after 25 years of service

Employees can terminate their contracts by giving a month's notice. If the employment contract is for the lifetime of the employee or for more than 5 years, an employee may terminate with 6 months of notice after 5 years of service.

Severance Benefits

New severance pay was introduced for employees whose employment began after January 1, 2003. Employers must pay a severance allowance to employees when an employment contract is terminated. During the employment contract, the employer must pay 1.53% of each employee’s gross salary to a severance payment fund called BV-Kasse. Upon termination, the employee is able to decide to have these funds paid out as a severance (the employee must have worked for 3 years with this employer to have this option) or leave the pay in the fund. If the employee decides to leave it in the fund, then the employer will continue to contribute to the fund on a monthly basis and, at termination, the employer will have no liability for a severance payment. The employee has six months from the end of the employment relationship to notify the BV-Kasse as to how the severance will be disbursed.

For employees whose employment began before January 1, 2003, the amount of the severance pay depends on the length of the employment relationship and the remuneration due for the last month of employment. Employees are entitled to 2 monthly wages after 3 years of service, 3 monthly wages after 5 years of service, 4 monthly wages after 10 years of service, 6 monthly wages after 15 years of service, 9 monthly wages after 20 years of service and 1 annual salary after 25 years of service.

If the employee chooses to terminate the contract, is dismissed for reasonable cause, or resigns without just cause, then the capital remains in the fund and continues to be invested. The amount can then be drawn upon once the employee reaches the age of retirement.

Pension

In Austria, there is compulsory social insurance coverage for persons who participate in paid employment or are self-employed. Minimally employed workers are entitled to a limited number of protections under the social insurance system, including old-age pension. The age for retirement is 65 for men and 61 for women, as long as they have paid insurance contribution for 180 months (15 years), with a minimum of 84 monthly contributions made in one gainful employment.

There are two types of pension calculations based the year of birth:

• Persons born before January 1, 1955 - the amount of pension is calculated as a percentage of "assessment basis," which is the average of 384 best monthly remunerations. The percentage is determined as 1.78 increase points per year of insurance.
• Persons born after January 1, 1955 - under the new system, in place since 2004, a pension account is created for each individual and is used for paying different mandatory pensions. The amount of retirement pension is calculated as 1.78% of the annual salary each year. A bonus of 5.1% per year is added for retirement after the standard retirement age, limited to a maximum of 15.3%. A maximum of 91% of the assessment basis can be granted as a monthly pension.

People are entitled to a corridor pension at the age of 62 years if they have contributed for 480 months. In case of heavy working hours, the old-age pension can be claimed after reaching the age of 60 if the insured person has acquired at least 540 months of insurance. From January 1, 2026, a new partial retirement option will be available to older employees who are eligible for a retirement pension, but want to continue working reduced hours. Working hours must be reduced by at least 25% and no more than 75%.

Dependents/Survivors Benefits

Survivors of a deceased employee eligible for pension benefits include spouses and children. They are eligible for benefits if the deceased insured employee completed the following period of insurance:

• If they died before the age of 50 years, a minimum insurance period of 60 months is required.
• If they died after the age of 50 years, an insurance period of 180 months is required.

Surviving spouse is eligible for a life-long pension if the following conditions are met:

• The widow(er) is at least 35 years old or at the time of the spouse's death.
• There is a child from the marriage.
• The widow(er) is disabled at the time of the spouse's death.
• They had been married for at least 3 to 10 years (the number of years will depend on the age difference between the surviving spouse and the deceased insured person)

In the case when none of the conditions are met, a temporary widow(er)'s pension is paid for 30 months. The amount of widow(er)'s pension is calculated as a percentage of the pension that the deceased would have been eligible to, ranging from 0 to 60%.

Children of the deceased insured persons are eligible for pension up to the age of 18 years or 27 years if they are students. The application for the pension must be made within 6 months of the death of an insured parent. The amount is 40% of the deceased parent's pension for each child. For children who have lost both parents, the pension is 60%.

Invalidity Benefits

Disability benefit is paid based on the degree of disability as a percentage of the assessment base. The assessment base is calculated as the average monthly salary of the insured person over the last year before disability set in.

In the case of permanent disability (where a worker has lost 100% of working capacity), 66.6% of the assessment base is paid. A proportionately reduced permanent disability benefit is paid with at least 20% reduction in earning capacity. The permanent partial disability benefit (referred to as supplementary benefit) is 20% of permanent disability benefit for loss of working capacity of 50-70%, and 50% of the permanent disability benefit when the loss in working capacity is greater than 70%. If the insured worker has at least 50% of the loss of working capacity, 10% of the total disability pension is paid for each child under 18 (age 27 for students or no age limit for disabled children). The total disability pension, supplementary pension including family supplements cannot exceed 100% of the assessment base.

For workers who sustain injuries from occupational accidents or diseases, there are disability benefits to assist the employee. When a worker has lost partial working capacity, he or she may receive a temporary disability benefit, which is the same as cash sickness benefit. The temporary disability benefit is paid until the insured worker is assessed with a permanent disability. The permanent or partial disability pension depends on the assessment base, which is an insured worker's average covered earnings in the last year before the disability began. Employers are also required to provide re-training allowance to employees for rehabilitation.

Personal Income Tax

In Austria, the Income Tax Act prescribes a progressive income tax rate that ranges from 0 to 55% (50% after 2025). Residents are taxed on their worldwide income, and non-residents are taxed only on Austrian-source income.

The income tax rate for an individual depends on the taxable income they received in a calendar year. The fiscal tax year is the same as the calendar year.

Visas

Austria is a party to the Schengen Implementation Agreement, which grants uniform entry to the Schengen countries. The following types of visas are available to persons who enter Austria:

• Visa A (Transit visa) - valid for airport transit
• Visa C (Tourist visa) - valid for 90 days stay in a 180 day period
• Visa D (Residence visa) - valid for up to 6 to 12 months of stay

Work Permits

Foreign nationals from countries outside the EU who wish to live and work within Austria must apply for a Red-White-Red Card. They can also apply for a similar card, the EU Blue Card. Both cards grant temporary residence and the right to work for a single employer over a 2-year period but are governed by a different set of rules. Red-White-Red Card allows employees to work only in Austria, while EU Blue Card allows them to work in any EU state.

Employees with EU Blue Card or Red-White-Red Card who have worked for at least 21 months during the preceding 24 months are eligible for Red-White-Red Card Plus. This card allows them fixed-term settlement and unlimited labor market access (as a self-employed or an employed person, not limited to a specific employer).

The general minimum age for employment as declared while ratifying the Minimum Age Convention is 15 years (or until the end of compulsory education). Occasional light work is allowed from the age of 13 years. The minimum age for hazardous work is 18 years. Employees under the age of 18 cannot work on Sundays or public holidays.

Daily working time for youth is 8 hours. Weekly working hours must not exceed 40 hours unless otherwise provided in the law. 9 hours are allowed in cases where the 40-hour weekly limit is averaged over a period of longer than a week; or where the 40-hour weekly limit is divided unevenly over individual days if it results in a longer period of weekly rest.

Young workers must not be involved in night work (between 8:00 PM and 6:00 AM), except in certain industries such as restaurants, shift work, entertainment (film, television, and radio recording), bakeries and hospitals.