# Hiring in Austria: employment costs, payroll and compliance

> Machine-readable page from EOR Overview (https://eoroverview.com/), an independent research platform for Employer of Record services.
> Canonical page: https://eoroverview.com/hiring-guides/austria/
> Methodology: how providers are researched, scored and compared is documented at https://eoroverview.com/methodology/.
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> Statutory data last updated: 2026-02-23. Every figure below carries its own source year.

## Country

| Field | Value |
|---|---|
| Region | Europe |
| Currency | EUR (Euro) |

## Pay & working time

| Field | Value | Source year |
|---|---|---:|
| Average wage | 75,767 | 2024 |
| Statutory work week | 40 hours/week | 2024 |
| 13th-month salary | customary | 2026 |

## Employer cost & tax

| Field | Value | Source year |
|---|---|---:|
| Employer social security | 27.6% | 2025 |
| Employee social security | 17.9% | 2025 |
| Total tax wedge | 47.1% | 2025 |
| Corporate tax rate | 23% | 2025 |

## Termination

| Field | Value | Source year |
|---|---|---:|
| Notice period | 2 weeks | 2019 |
| Severance pay | 0 weeks | 2019 |
| Employment protection | 1.8 | 2019 |

## Leave & time off

| Field | Value | Source year |
|---|---|---:|
| Paid annual leave | 25 days | 2026 |
| Public holidays | 13 days | 2026 |
| Maternity leave | 16 weeks | 2024 |
| Paternity leave | 4.3 weeks | 2026 |
| Parental leave | 44 weeks | 2024 |

## Labour market

| Field | Value | Source year |
|---|---|---:|
| Retirement age | 63 | 2024 |
| Unemployment rate | 5.5% | 2025 |
| GDP per capita | $58,269 | 2024 |
| Union density | 20.2% | 2024 |
| Collective bargaining coverage | 98% | 2024 |

## Overview

Getting someone on payroll in Austria is relatively quick once you have the right setup. An Employer of Record (EOR) can typically onboard an employee within a week or two, because Austria has clear, well-established employment rules and no major bureaucratic surprises at the start. What moves slowly is everything around collective agreements: with 98% of workers covered by collective bargaining, the applicable agreement for your employee's sector shapes their minimum pay, working hours, and entitlements, and getting that right takes careful reading before day one.

The numbers that shape your budget most are the employer social security contribution of 27.6% on top of gross salary and an average annual wage of 75,767 EUR. Austria also runs a 40-hour statutory work week, and with parental leave reaching 44 weeks, you should plan for longer absences than you might expect in other markets.

## Cost context

On top of every euro of gross salary you agree with an employee, you pay employer social contributions of 27.6% of that gross. This single line item is what pushes the true cost of employment well above the headline salary figure, and it is the main driver of Austria's total tax wedge of 47.1%.

## Things to watch

A few Austria-specific details can catch foreign employers off guard.

- Employer social contributions add up fast. At 27.6% of gross salary, employer social security is one of the higher rates in Europe. Budget for it from the start, not as an afterthought.

- Collective agreement coverage is near-universal. With 98% of employees covered, the relevant sectoral agreement almost certainly applies to your hire. It can set pay floors, overtime rules, and extra benefits above the statutory minimum.

- The total tax wedge is high. At 47.1%, Austria's combined employer and employee tax burden is significant. This affects how competitive a gross salary looks to a candidate versus what you actually pay.

- Parental leave is long. At 44 weeks of parental leave, you need a realistic plan for cover. This is not a short absence, and Austrian law protects the employee's right to return.

Providers ranked for Austria: https://eoroverview.com/best/austria/