GLOBAL EMPLOYER OF RECORD IN AUSTRIA
Employer of Record in Austria
Hire the talent your business needs in Austria without making local incorporation a prerequisite. Acumen acts as your Employer of Record, helping you put key hires in place, test the market and increase headcount while the long-term footprint is still taking shape.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
How an Employer of Record works in Austria
In Austria, an Employer of Record arrangement is a form of labour leasing under the Temporary Agency Work Act (AÜG). Acumen International holds the employment contract, classifies the role under the right collective agreement, registers the employee for social insurance and runs payroll. Your business directs the work and, as the business where the work is done, is responsible for workplace safety and for keeping daily working time within the law.
The structure matters because Austrian employment law looks at how work is actually organised, not at what a contract calls it. Pay floors come from sector collective agreements, social insurance and wage tax are audited together, and a contractor who works like an employee is treated as one. An Employer of Record gives you an employment relationship that fits this system from the first day.
Contract models compared
| Model | Legal test | Exposure for your business |
|---|---|---|
| Employment through Acumen International (Dienstvertrag) | Personal, ongoing work under direction, with the collective agreement applied | None on status; the relationship is employment by design |
| Freelance service contract (freier Dienstvertrag) | Ongoing services without set hours, workplace or instructions | Reclassified as employment once the person works inside your team, with back contributions and wage tax |
| Contract for work (Werkvertrag) | A defined result delivered at the contractor’s own risk, mainly with their own means | Treated as disguised employment, or as unlicensed labour leasing, when no distinct result is owed |
| Marginal employment | Pay of no more than EUR 551.10 a month in 2026 | Workable only for very small part-time roles |
When the model is the right structure
The clearest case is market entry. A GmbH requires notarised articles of association, a managing director, at least EUR 10,000 in share capital and entry in the commercial register, followed by registrations for tax and social insurance. An Employer of Record lets the first people start while you judge the market on results, and the team can transfer to your GmbH once it exists.
Austria also suits longer arrangements than its neighbours. The Temporary Agency Work Act sets no maximum period for assigning an employee to the same client, whereas Slovakia limits assignments to 24 months and Hungary to five years. A specialist role, a regional sales position or a project team can therefore stay with an Employer of Record for as long as it makes sense commercially.
The model also opens Austria to candidates who will only accept employment. Experienced Austrian professionals weigh the collective agreement grade, the 14 salary payments and the protection that comes with employment, and an offer through Acumen gives them all three. Where the best candidate comes from outside the EU, Acumen can be the employer the Red-White-Red Card requires, subject to approval by the labour market service.
Labour leasing rules in Austria and their limits
What the law requires of the employer
Leasing employees is a licensed trade in Austria, and leasing staff into Austria from another country is allowed only with an exceptional permit. The employer must therefore be an Austrian business holding the trade licence, not a foreign company sending its own staff in. During an assignment, the employee is paid at least what your sector’s collective agreement sets for comparable work, if that is higher than the leasing industry’s agreement, and your sector’s working-time rules apply. When an assignment that has lasted more than three months ends, the employee must receive at least 14 days’ notice of it.
What it means for your business
Your business stands as guarantor for the employee’s pay and social insurance contributions. Once you have paid the employer for the assignment, that liability becomes a fallback, which is one reason to work with an employer whose payroll and contributions are run reliably. Leased employees cannot be placed in a business affected by a strike. For non-EU nationals, the employment permit must be granted before the first working day, and inspectors can fine the business where the person works if it is missing, even though the employer is the one who applies.
Collective agreements and the 14-salary year in Austria
Austria has no statutory minimum wage. Sector collective agreements set minimum pay by job grade and recognised experience, and they cover nearly all private-sector employees. Classifying a role correctly is therefore the first step of every Austrian offer: the grade decides the legal minimum, and an error shows up as back pay in an audit.
Collective agreements are renegotiated every year. Many raise actual salaries as well as the minimums, so an Austrian salary rises with the agreement even when it is already above the floor, and your budget needs to allow for that.
Nearly every agreement also provides a holiday bonus and a Christmas bonus, each usually worth a month’s pay, so Austrian salaries are paid 14 times a year and compared as annual figures. These special payments carry a lower tax rate: within one-sixth of regular annual pay, the first EUR 620 is tax-free and the rest is taxed at 6%, which makes them more valuable to the employee than the same amount paid monthly.
Two transparency rules apply before anyone is hired. Job advertisements must state the collective agreement minimum and whether you are prepared to pay more, and all-in contracts that cover overtime with a single salary must show the base salary separately.
Employment contracts and working time in Austria
| Rule | What it means for you |
|---|---|
| Probation lasts no longer than one month | Either side can end the employment without notice during that month, so expectations and early objectives need to be set from day one |
| Repeated fixed-term contracts need an objective reason | A chain of fixed-term contracts without a justification is treated as open-ended employment |
| Normal working time is 8 hours a day and 40 a week, often 38.5 under the collective agreement | The agreed weekly hours set the base for overtime and for comparing pay with your own staff |
| Working time is capped at 12 hours a day and 60 a week, averaging 48 over 17 weeks | Peaks are possible, but only within these limits and with records kept |
| Overtime is paid at a 50% premium or compensated with time off at 1 to 1.5 | All-in salaries must be high enough to cover the overtime actually worked |
| A non-compete lasts up to one year and is valid only above EUR 4,620 a month in 2026 | Restrictive covenants work only for senior, higher-paid roles |
Ending employment in Austria: notice, challenges and exit costs
An Austrian employer can give notice without a statutory reason, but the process has formal steps. Where a works council exists, it must be informed first and has a week to respond. The employee can then challenge the dismissal within 14 days, either as socially unjustified or as based on a prohibited motive, and pregnant employees, parents on parental leave and works council members are protected against dismissal.
| Length of service | Employer’s notice |
|---|---|
| Up to 2 years | 6 weeks |
| From the 3rd year | 2 months |
| From the 6th year | 3 months |
| From the 16th year | 4 months |
| From the 26th year | 5 months |
Notice ends on the last day of a calendar quarter unless the contract allows the 15th or the last day of any month, which is worth agreeing at the start. Employees give one month’s notice to the end of a month.
Why exit costs are predictable
For employment that began in 2003 or later, the employer pays 1.53% of gross pay every month into an employee provision fund. The employee’s severance entitlement builds up there, so the employer makes no lump-sum severance payment when employment ends. The cost of an exit is limited to pay during notice, unused annual leave and the pro rata share of the holiday and Christmas bonuses.
| Risk | Where it arises | How Acumen International covers it |
|---|---|---|
| Worker misclassification | Freelance or work contracts that function as employment are reclassified in the joint payroll audit, with back contributions and wage tax | Your Austrian staff are employed by Acumen International under the collective agreement for their role |
| IP ownership | Software written in the job passes to the employer, but other creative work and inventions need a contractual basis, and inventions entitle the employee to remuneration | Contracts grant usage rights, include a written inventions clause and pass all rights onward to your business |
| Client liability for pay and contributions | The business where the employee works is guarantor for pay and social insurance under the Temporary Agency Work Act | Salaries and contributions are paid every cycle, with payment confirmations available on request |
| Equal pay for assigned staff | Assigned employees must earn at least your sector’s collective agreement rate for comparable work | Each role is graded against your sector’s agreement before the offer |
| Permanent establishment | An employee who habitually concludes contracts for your company can create a taxable presence in Austria | Signing authority stays with your company and is written into the role profile |
| Exit cost | Notice running to a quarter end, unused leave and pro rata special payments, plus protection for certain employees | Notice dates and exit costs are set out in the proposal before the hire |
| Sponsor obligations | A Red-White-Red Card ties the employer to the pay and conditions stated in the application | Acumen International carries the employer’s duties under the card and reports changes on time |
| Pay transparency | The EU Pay Transparency Directive was due for national transposition by June 2026, on top of Austria’s rule that job ads state the agreement minimum | Pay structures and job advertisements prepared for both requirements |
Non-EU hires in Austria: the Red-White-Red Card through Acumen International
Austria’s main route for skilled workers from outside the EU is the Red-White-Red Card. It is points-based and, except for the most highly qualified, tied to a specific employer and job offer. The employer’s offer must meet collective agreement pay, and the labour market service (AMS) checks the conditions before the residence authority issues the card.
| Category | Who it suits | Key conditions |
|---|---|---|
| Very highly qualified workers | Leading specialists and researchers | 70 of 100 points; a six-month job-seeker visa is possible without an offer |
| Skilled workers in shortage occupations | Holders of vocational qualifications in listed occupations | 55 of 90 points and a job offer at collective agreement pay, with no labour market test |
| Other key workers | Specialists outside the shortage list | 55 of 90 points, a labour market test and a minimum salary of EUR 3,465 a month in 2026, plus special payments |
| Graduates of Austrian universities | International students who studied in Austria | A job matching their level of qualification |
| EU Blue Card | University graduates with a high salary offer | A degree and a salary above the Blue Card threshold |
Where Acumen International adds value
Because the card names the employer, a company without an Austrian employer cannot make the offer the application needs. Acumen International can act as that employer, prepare an offer that meets the points and pay requirements, and support the application through the AMS and the residence authority. Acumen also confirms with the AMS that the role qualifies for employment through Acumen before the candidate resigns from their current job. After 21 months of qualifying employment within two years, the employee can move to the Red-White-Red Card plus, which gives free access to the Austrian labour market.
Employer cost of an Austrian salary
Social insurance in Austria is shared between employer and employee and calculated on pay up to EUR 6,930 a month in 2026, with a separate ceiling of EUR 13,860 a year for special payments. On top of that, the employer pays several payroll levies that have no ceiling.
| Contribution | Employer | Employee |
|---|---|---|
| Health insurance | 3.78% | 3.87% |
| Pension insurance | 12.55% | 10.25% |
| Unemployment insurance | 2.95% | 2.95%, reduced for lower earners |
| Accident insurance | 1.10% | None |
| Insolvency fund | 0.10% | None |
| Housing contribution | 0.50% | 0.50% |
| Chamber of Labour levy | None | 0.50% |
| Employee provision fund | 1.53% | None |
| Family burden equalisation fund (DB) | 3.70% | None |
| Chamber surcharge (DZ) | 0.33% to 0.40%, depending on the federal state | None |
| Municipal tax | 3% | None |
A EUR 70,000 salary, paid as 14 instalments of EUR 5,000
In Vienna, each regular month of EUR 5,000 costs the employer about EUR 6,479, and each special payment about EUR 6,454, because the housing contribution does not apply to special payments. Across the year, the employer’s total cost comes to around EUR 90,650.
Wage tax
Income tax is withheld monthly on a progressive scale. For 2026, the first EUR 13,539 of annual taxable income is tax-free, and the rates rise through 20%, 30%, 40% and 48% to 50% above EUR 104,859, with a temporary 55% rate above EUR 1 million.
The Global Payroll Calculator spreads any Austrian salary across the 14-payment year, so you can see the true annual cost of an offer.
Sectors employing through an Employer of Record in Austria
- Steel, machinery and plant engineering are concentrated in Upper Austria and Styria, where suppliers and customers of companies such as voestalpine need engineers on site.
- Car production and components centre on Graz and Steyr, with Magna Steyr assembling vehicles for several brands, and suppliers hire launch, quality and software engineers close to these plants.
- Semiconductor and sensor makers, including Infineon in Villach and ams OSRAM in Premstätten, recruit process and design engineers, and their suppliers follow them.
- Pharmaceutical and biotech companies in Vienna and Tyrol employ research, regulatory and production specialists.
- Vienna hosts regional offices for central and eastern Europe, where sales, finance and operations roles often start with one or two hires.
In each case, the first Austrian employees are needed close to a customer, a plant or a market well before a GmbH is in place.
Austrian hiring cases and how they are handled
| Case | What Austrian rules add | How it is handled |
|---|---|---|
| An engineer asks for a four-day week | Daily working time can be extended to 10 hours when the weekly hours are spread over four days by agreement | The schedule is agreed in writing and checked against the collective agreement |
| A team member wants to work partly from home | Telework needs a written agreement, the employer provides or pays for the equipment, and a home-office allowance of up to EUR 3 a day for 100 days a year is tax-free | A telework agreement is issued, and the allowance runs through payroll |
| A new hire joins in September | The holiday and Christmas bonuses are due pro rata for the months worked in the year | Both bonuses are calculated for the partial year and included in your cost forecast |
| A sales manager travels across Austria to visit clients | Business trips carry tax-free daily and overnight allowances at statutory rates, and travel time can count as working time | Trips are recorded and allowances paid through payroll at the correct rates |
Benefits and payroll administration in Austria
Several benefits are tax-free in Austria up to set limits, which makes them efficient additions to an offer. Meal vouchers for restaurants are tax-free up to EUR 8 per working day. Employer contributions to a pension fund, a public transport ticket for the commute and a childcare subsidy of up to EUR 2,000 a year per child under 14 can also be provided without wage tax.
Payroll deadlines
| Deadline | What happens |
|---|---|
| Before the first working day | The employee is registered with the Austrian Health Insurance Fund |
| By the 15th of the following month | The monthly contribution report is filed, and social insurance, wage tax, DB, DZ and municipal tax are paid |
| By the end of February | The annual pay statement for each employee is sent to the tax office |
| By 31 March | The annual municipal tax return is filed |
Holidays, sick pay and family leave in Austria
| Leave | Entitlement | Paid by |
|---|---|---|
| Annual leave | 25 working days a year, rising to 30 after 25 years of service | Employer |
| Public holidays | 13 a year | Employer |
| Sick leave | Full pay for 6 weeks, rising to 8 weeks after one year, 10 after 15 years and 12 after 25 years, followed by 4 weeks at half pay | Employer, then sickness benefit from the Austrian Health Insurance Fund |
| Care leave | Up to one week a year to care for a sick close relative, plus a further week for a sick child under 12 | Employer |
| Maternity protection | 8 weeks before and 8 weeks after the birth, extended to 12 weeks after for premature, multiple or caesarean births | Maternity allowance from health insurance |
| Paternity month | Up to one month of leave after the birth | Family time bonus from the state |
| Parental leave | Until the child turns two when shared, or 22 months when only one parent takes it | Childcare allowance from the state |
Sources
- Income tax brackets
- Tax rates and tax credits
- Temporary Agency Work Act, section 16: cross-border leasing
- Red-White-Red Card for skilled workers in shortage occupations
- Work and migration
- Social insurance contributions for employees in 2026
- Labour leasing
- Red-White-Red Card: scope
- Employing leased foreign workers
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Can we employ a country manager or sales lead in Austria through an Employer of Record?
Potentially. Senior commercial roles can often be employed through an Employer of Record, but the employee’s activities may create corporate tax, registration, licensing or permanent-establishment considerations for the client. Acumen International can assess the employment setup; the wider corporate risk should be considered alongside it.
Can we keep an employee who relocates to Austria if we do not have an entity there?
Often, yes, where the role and the employee’s right to work can be supported. Acumen can become the Employer of Record in Austria, allowing the person to remain part of your business under a local employment arrangement rather than forcing the company to incorporate just to retain them.
Can an Employer of Record bridge employment during an acquisition or restructuring in Austria?
Yes, where the proposed employee transition is locally feasible. An Employer of Record can provide employment continuity in Austria while a buyer establishes its own entity, a workforce separates from a seller, or a post-deal operating structure is being put in place.