Employer of Record (EOR) in Austria: 2026 Guide

EOR_in_AUSTRIA

Hiring in Austria: Introduction to Employer of Record (EOR)

Hiring in Austria requires navigating local labor rules, payroll obligations, and statutory compliance that can be difficult for foreign companies to manage alone. An Employer of Record (EOR) allows businesses to hire employees in Austria quickly and legally by handling employment contracts, payroll administration, taxes, and mandatory social contributions without needing to create an Austrian legal entity.

Using this guide, you will learn how EOR services streamline hiring in Austria, reduce administrative risk, and offer the fastest path to compliant workforce expansion in the country.

🇦🇹 Austria at a Glance – Hiring & EOR Overview

🏛️ Capital: Vienna
👥 Population: 9,158,750
💶 Currency: Euro (EUR)
🗣️ Language: German (official)
📊 Ease of Doing Business: 27th (last World Bank index)
💰 GDP per Capita: $56,802 USD (2024)
🕒 Average Workweek: 40 hours (Standard)
📅 Payroll Cycle: Monthly (13th & 14th month pay common)
🧾 Tax Due Date: 15th of the following month
🏢 Corporate Tax: 23% (as of 2024)
💼 Employer Contributions: Social Security: ~21.03%
🧍 Average Employee Tax Rate: Progressive up to 55%

Choosing between an Employer of Record (EOR) in Austria and incorporating your own Austrian company depends on how fast you want to enter the market and how much local overhead you are willing to take on. The comparison below highlights the main advantages and limitations of each approach so you can decide which model fits your hiring and expansion strategy in Austria.

FactorEmployer of Record (EOR)Setting Up a Legal Entity in Austria
Setup Time✅ Fast launch, often 1 to 2 weeks❌ Typically 4 to 8 weeks, including notary acts, Commercial Register (Firmenbuch) entry, and bank setup
Initial Cost✅ Low, service fee plus employee costs❌ High, €10,000 minimum share capital for a GmbH, plus notary and legal fees
Ongoing Cost✅ Predictable monthly EOR pricing❌ Variable, includes 13th/14th month salaries, social security at approximately 21.23%, and Chamber of Commerce (WKO) levies
Complexity✅ Simple, EOR runs contracts, payroll, and HR admin❌ High, must navigate complex Collective Agreements (Kollektivverträge) and strict tax laws such as 23% corporate tax
Control Over Operations✅ You direct day to day work, EOR is legal employer❌ Full legal responsibility for employment and strict Austrian compliance
Compliance Management✅ EOR handles employment compliance and filings❌ Must be managed internally or via local tax advisors (Steuerberater)
Scalability✅ Easy to scale hiring up or down❌ Slower, liquidation or restructuring involves complex legal procedures
Local Expertise Required✅ None, local HR and legal support included❌ Significant, requires deep knowledge of Austrian labor law, including 25 working days of statutory leave and social law
Risk✅ Employment admin risk sits mainly with the EOR❌ Company carries full liability for compliance mistakes and tax audits
Best For✅ Fast hiring, market entry, and distributed teams❌ Large-scale operations and long-term strategic presence

Why would you use an Employer of Record in Austria?

Hiring employees in Austria means dealing with local labor law, social security rules, individual income tax and reporting to Austrian authorities. An Employer of Record in Austria takes over the role of legal employer, handling compliant contracts, payroll, statutory contributions and HR administration while you manage the employee’s day to day work.

With an EOR, you can add Austrian staff in full compliance with Austrian Labor Law and applicable collective agreements without waiting months to register a local entity. The provider calculates and pays social contributions and income tax in Euro (EUR), manages benefits including the mandatory 13th and 14th month salary payments and payslips, and keeps you aligned with local filing deadlines. This makes EOR a low risk option for testing the Austrian market, building remote teams or supporting a single key hire.

EOR partners can also support work and residence permits such as the Red-White-Red Card for foreign hires, onboarding and offboarding, and updates when Austrian employment or tax regulations change. You keep strategic control over projects and performance, while the EOR absorbs most of the operational and compliance workload.

The best EOR companies in Austria

Several global Employer of Record platforms now include Austria in their country coverage, giving you a simple way to hire Austrian talent from the same system you use in other countries. These providers combine local legal expertise with centralized payroll, HR tools and clear pricing so you can forecast costs and stay compliant.

On EORQuotes.com you can compare leading EOR providers for Austria by fees, supported employment models, benefits options and depth of local support. Reviewing multiple offers side by side makes it easier to find the Employer of Record in Austria that matches your budget, risk tolerance and long term growth plans.

Multiplier

Global Employer of Record Platform for International Hiring

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Multiplier provides a unified Employer of Record and HR operations platform designed to help companies hire, onboard, and pay talent across 150+ countries. It streamlines compliant employment contracts, payroll processing, statutory obligations (including Austria's 13th and 14th-month pay), and benefits administration, giving teams a centralized system for global workforce expansion.

Core Services Offered by Multiplier:

🌍 Global EOR Coverage
🧾 Payroll & Compliance Workflows
💰 Benefits Administration
🛂 Immigration Support
👥 Contractor Management

With coverage spanning Europe, APAC, and 150+ global markets including Austria (Currency: EUR, Corporate Tax: 25%, Income Tax: up to 55%, Social Security: ~39.5%, Leave Days: 25, Work Week: 40 hours), Multiplier supports localized onboarding, compliant payroll execution, and practical guidance so international teams can operate without setting up a local GmbH.

Founded: 2020
Coverage: 150+ countries
Pricing: From $400 per employee/month (varies by country)
  • ✅ Fast onboarding with clear platform-led workflows
  • ✅ Integrated contracts, payroll, compliance, and HR administration
  • ✅ Manages Austrian complexities like collective bargaining agreements (KV)
  • ✅ Suitable for scale-ups building distributed teams in the DACH region
Verdict:

Multiplier is a modern, platform-first EOR provider that can reduce the admin load of international hiring, making it a practical fit for companies building teams in Austria (Capital City: Vienna, Government: Federal Government of Austria) and across multiple European markets.

Rated 4.7/5 on G2

Remote People

One Platform to Recruit, Employ, and Expand Internationally

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Remote People delivers an integrated Employer of Record and global payroll solution crafted to assist businesses in hiring, onboarding, and compensating talent in over 150 countries. Featuring inbuilt recruitment, dedicated account managers, and straightforward pricing, Remote People offers a centralized system for worldwide workforce growth.

Core Services Offered by Remote People:

🌍 Extensive EOR Coverage
🧾 Payroll & Compliance Solutions
🤝 Integrated Recruitment
💼 Legal Entity Setup
👤 Personalized Account Management

Covering over 150 global markets including Austria, Remote People facilitates localized onboarding, compliant payroll processing, and effective advice, ensuring international teams can function seamlessly without establishing a local entity.

Coverage: 150+ countries
Pricing: EOR from €199/month
Support: Dedicated Account Manager
  • ✅ EOR services starting at €199/month without hidden costs
  • ✅ Integrated recruitment and global incorporation assistance
  • ✅ Optimal for multi-location hiring, including Austria
  • ✅ Dedicated account manager for tailored support
Verdict:

Remote People is a comprehensive EOR and recruitment platform offering transparent pricing and personalized support, making it an ideal choice for companies expanding their teams in Austria and other regions.

Rated 4.8/5 on G2

Playroll

Employer of Record Services for Austria & Global Teams

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Playroll is a modern Employer of Record (EOR) and global payroll platform built to help businesses hire, onboard, and pay employees in Austria and 150+ international markets. The platform supports compliant employment contracts, payroll execution, statutory deductions, and HR administration, giving companies a practical way to hire in Austria without setting up a local entity.

Key Services Offered by Playroll:

🌍 Global EOR & Workforce Management
🧾 Payroll, Taxes & Compliance Support
💼 Benefits Administration & HR Support
🛂 Work Permit Coordination
📊 Reporting & HR Insights

For hiring in Austria, Playroll supports compliant onboarding through locally aligned contracts, payroll administration, statutory handling, and practical guidance around employment requirements.

Founded: 2020
Coverage: 150+ countries
Pricing: Custom quote
  • ✅ Compliant onboarding support for employees in Austria
  • ✅ Centralized payroll and HR workflows with clear documentation
  • ✅ Ongoing compliance support and reporting capabilities
  • ✅ Strong option for companies scaling international or remote teams
Verdict:

Playroll offers a platform-led EOR solution that can reduce the admin load of international hiring. It can be a practical partner for companies hiring in Austria while scaling across multiple markets.

Rated 4.8/5 based on client feedback

Deel

Global Employer of Record Platform for Hiring in 150+ Countries

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Deel is a widely used Employer of Record (EOR) and global HR platform that helps companies hire, onboard, and manage employees or contractors in 150+ countries without setting up local entities. It centralizes employment contracts, payroll processing, compliance with Austrian labor laws, benefits administration, and mobility support, making it a strong option for companies expanding into the Austrian market.

Core Services Provided by Deel:

🌍 Global EOR Coverage
🧾 Payroll & Compliance Workflows
🛂 Immigration & Mobility Support
💼 Benefits & Equity Administration
👥 Employee & Contractor Management

Deel supports market entry across Europe, APAC, Africa, and the Americas through a unified platform that standardizes onboarding and payroll execution. For hiring in Austria, Deel manages complex requirements such as the mandatory 13th and 14th-month salary payments (Urlaubsgeld and Weihnachtsgeld) and adherence to applicable Collective Bargaining Agreements (Kollektivverträge).

Founded: 2019
Coverage: 150+ countries
Pricing: Starting at $599/mo for EOR
  • ✅ Automated handling of Austrian 13th and 14th-month statutory bonuses
  • ✅ Compliance with local Collective Bargaining Agreements (KV)
  • ✅ Management of mandatory Austrian social security and health insurance contributions
  • ✅ Localized contracts tailored to Austrian Arbeitsrecht (Labor Law)
Verdict:

Deel is a platform-led EOR provider with broad country coverage and mature global HR tooling. It is an excellent fit for companies hiring in Austria that require a tech-first solution to manage European compliance and localized payroll requirements under a single operational framework.

Customer ratings vary by review platform

Papaya Global

Enterprise EOR & Global Payroll Across 160+ Countries

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Papaya Global is an enterprise-focused Employer of Record (EOR) and global payroll platform built for multi-country teams. It enables companies to hire and manage talent across 160+ jurisdictions without setting up local entities, consolidating payroll, statutory compliance, benefits administration, and cross-border payments in one system.

Core Services Provided by Papaya Global:

🌍 Global EOR & Entity-Free Hiring
🧾 Payroll, Tax & Compliance Management
🛂 Immigration & Workforce Mobility Support
💼 Benefits, Equity & Local HR Support
💳 Cross-Border Payments & Payout Solutions

For companies hiring in Austria, Papaya Global can support compliant onboarding and payroll execution through its platform and in-country delivery model. This approach is often used by enterprises that want centralized oversight while keeping employment and payroll aligned with Austrian labor laws, including mandatory 13th and 14th-month salary payments.

Founded: 2016
Coverage: 160+ countries
Pricing: Custom enterprise quote
  • ✅ EOR, payroll, and compliance coverage across 160+ countries
  • ✅ Unified platform for payments, onboarding, and global workforce management
  • ✅ Built for enterprises and fast-scaling organizations with multi-country needs
  • ✅ Strong option for teams prioritizing automation and centralized payroll visibility
Verdict:

Papaya Global combines enterprise-grade automation with multi-country payroll and compliance infrastructure, making it a strong fit for companies hiring in Austria or managing international teams across Europe and the DACH region.

Rated 4.5/5 on G2 (review volume varies)

Leading Employer of Record (EOR) Providers in Austria

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How EOR Pricing Works: A Clear Breakdown

When evaluating an Employer of Record (EOR) provider in Austria or abroad, understanding how pricing works is key to making the right decision. Each EOR pricing model impacts your total employment cost, including Euro-based social security contributions and mandatory 13th and 14th-month salary payments, scalability, and the level of service you receive.

Below is a concise breakdown of the most common EOR pricing models and what they mean for your business when hiring internationally.

💲 Percentage-Based Fees

Under this structure, the Employer of Record charges a percentage of the employee’s gross salary each month. In Austria, where total compensation includes mandatory 13th and 14th-month salary payments (holiday and Christmas bonuses), the EOR service fee scales proportionally with the annual total.

Pros: Simple model that scales naturally for higher-compensation roles and variable pay.
Cons: Can become expensive for senior hires in Austria, especially when base pay, statutory bonuses, and allowances are high.

📦 Flat Monthly Fees

A fixed per-employee fee is billed each month, regardless of salary level, job title, or the specific collective bargaining agreement (Kollektivvertrag) that applies to the role.

Pros: Predictable monthly cost and easier budgeting for Austria hiring plans.
Cons: May be less cost-effective for lower-salary roles or short-term hires.

📊 Tiered Pricing

Fees are grouped into predefined tiers based on salary bands, role type, or headcount. Companies hiring multiple employees in Austria may qualify for discounted rates as volume increases.

Pros: Useful for scaling teams in Austria or hiring multiple roles under one provider.
Cons: Total cost can be harder to forecast early if headcount or salary bands change.

⚙️ Custom Pricing

Pricing is negotiated based on hiring volume, service scope, and operational complexity. This model is common for companies expanding into Austria alongside several other European markets.

Pros: Can be optimized for enterprise requirements, multi-country coverage, and internal controls.
Cons: Requires consultation and may involve a longer evaluation and contracting cycle.

How Does EOR Work in Austria?

Using an Employer of Record (EOR) service in Austria allows companies to hire and manage employees without opening a local legal entity. The EOR becomes the official employer in Austria and handles contracts, payroll, tax reporting, and full statutory compliance. This is how the process works:

1. Understanding Your Hiring Needs

You discuss your hiring goals in Austria with an EOR provider. They assess the type of talent you need, expected timelines, and whether the EOR model is the most efficient option for your expansion.

2. Creating Legally Compliant Employment Documents

The EOR prepares employment contracts that comply with Austrian labor law and applicable Collective Bargaining Agreements (Kollektivverträge). They handle documentation, onboarding, registration with authorities, and ensure the employee can start work quickly and legally.

3. Managing Payroll, Taxes, and Contributions

Once the employee is onboarded, the EOR manages payroll processing in Euros, income tax withholding, social security contributions, benefits administration, and monthly statutory reporting. This keeps your company fully compliant with Austrian regulations, including payments to the OEGK and the administration of mandatory 13th and 14th-month salary payments.

4. Day-to-Day HR Support and Offboarding

The EOR provides HR assistance such as contract renewals, performance documentation, employee support, and legally compliant termination procedures following the Austrian Labor Act. All actions follow local legal requirements to minimize risk.

An EOR in Austria allows your company to expand or test the market efficiently, with full legal protection and minimal administrative burden.

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Business in Austria – Facts for Employers

Austria offers a highly skilled workforce, a stable economic environment, and strategic access to the European Single Market, making it an attractive location for international hiring.

The country’s excellent infrastructure and robust legal framework create opportunities for foreign employers. However, navigating Austrian labor law, payroll obligations, and social contribution rules can be complex without local expertise. This is where an Employer of Record (EOR) in Austria helps companies hire quickly, compliantly, and without opening a legal entity.

Labor Law & Hiring Overview

Employment in Austria is regulated by the General Civil Code, the Employment Contract Act, and various specific labor statutes.

The standard statutory work week is 40 hours, though many collective agreements reduce this to 38.5 hours.

Employees receive a minimum of 25 working days of paid annual leave per year, based on a five-day work week.

Austria observes 13 national public holidays each year.

Employment agreements must specify job duties, salary terms, probation conditions, and termination rules. The maximum probation period is 1 month.
The notice period for termination typically starts at 6 weeks for employers, increasing based on the length of service and specific collective agreement terms.

Collective agreements are highly prevalent in Austria, covering nearly all industries and heavily influencing minimum wages, working hours, and employee benefits.

CategoryKey Detail
Work weekUp to 40 hours (standard 8 hours per day)
Paid leaveMinimum: 25 days for a full-time employee (based on a 5-day week)
Public holidays13 public holidays
Employer contributionsSocial Security: Approximately 21.03% (plus 1.53% severance fund contribution)
Probation periodMaximum 1 month for all employees
Notice period6 weeks to 5 months (variable by years of service)

Payroll & Taxation in Austria

Payroll compliance is tightly regulated in Austria. Both employers and employees must contribute to the social insurance system (Österreichische Gesundheitskasse – ÖGK) and the various statutory funds managed by the state.

The total employer cost generally ranges from 21% to 30% of gross salary, which includes social security contributions, municipal tax, and the family burden equalization fund. Employees contribute roughly 18% of their gross salary toward social security.

Income tax is progressive, ranging from 0% up to 55%, with a tax-free threshold available for all resident employees. Employers must register workers with the social insurance provider before they commence work and submit monthly payroll reports to the relevant authorities.

Contribution TypeEmployer ShareEmployee Share
Social Security (Pension, Health, Unemployment)19.93% of gross salary (Cap: €6,060/month)18.12% of gross salary (Cap: €6,060/month)
Statutory Accident Insurance (AUVA)1.1% of gross salaryN/A
Ancillary Taxes (FLAF & Municipal Tax)6.7% of payroll (3.7% Family Fund + 3% Municipal Tax)N/A
Staff Provision Fund (MVK - Severance)1.53% of gross salaryN/A
Total (indicative)~29.26% - 30% (plus minor Chamber levies)~18.12% (capped)

Employee Benefits and Leave Entitlements in Austria

Austrian labor law provides employees with strong protections and clearly defined leave entitlements.

Below are the key benefits every employer should be aware of:

Employees receive a guaranteed minimum of 25 days paid annual leave, paid maternity leave, and fully regulated sick leave through the national social insurance system. These entitlements are a major reason many companies use an EOR in Austria to ensure full compliance with local labor rules.

Annual Leave & Public Holidays

Employees in Austria are entitled to 25 working days of paid annual leave per year (for a five-day workweek), which increases to 30 working days after 25 years of service. The country also observes 13 statutory public holidays, including National Day (October 26th), Epiphany, and All Saints' Day.

Maternity & Family-Related Leave

Expectant mothers are entitled to 16 weeks of maternity leave (8 weeks before and 8 weeks after birth), during which they receive 100% of their net income as "Wochengeld." Austria also provides for parental leave (Karenz) until the child's second birthday and a "Papamonat" (one month off) for fathers.

Sick Leave Entitlements

In Austria, employees are entitled to continued pay during illness provided by the employer for 6 to 12 weeks at 100%, followed by 4 weeks at 50%, depending on seniority. Once employer-paid leave is exhausted, the Social Health Insurance (ÖGK) provides sick pay benefits (Krankengeld).

Bonuses & Allowances

While not mandated by federal law, 13th and 14th-month salaries (holiday and Christmas bonuses) are effectively mandatory as they are included in almost all collective bargaining agreements. These payments are typically made in June and November and are subject to preferential tax rates.

Hiring and Compliance with an EOR in Austria

An Employer of Record (EOR) enables foreign companies to hire employees in Austria without creating a local legal entity.
The EOR acts as the official employer of record, managing employment contracts, payroll, taxes, and statutory contributions, while your organization directs the employee’s day-to-day work.

This model ensures full compliance with Austrian labor law, payroll rules, and reporting obligations.
EOR partners also support work permits, Red-White-Red Card sponsorship, and local onboarding, reducing administrative costs and speeding up market entry.

An EOR solution in Austria is ideal for:

• Testing the Austrian market before establishing a subsidiary
• Hiring remote talent or technical specialists based in Austria
• Expanding operations across Central Europe quickly and compliantly

It is the simplest way to hire in Austria with full legal protection and no permanent establishment risk.

Total Cost of Employment in Austria

Employers should expect an additional 30–32 percent on top of gross salary to cover the required employer contributions for social insurance (Social Security), health insurance, municipal tax (Kommunalsteuer), and the mandatory severance fund (Mitarbeitervorsorgekasse). It is important to note that the total cost must account for 14 salary payments per year, as 13th and 14th-month bonuses are mandatory under Austrian collective agreements.

To calculate full employment cost – including progressive income tax rates (ranging from 0 to 55 percent), social contributions, and net salary in Euro (EUR) – companies can use an Austria Cost of Employment Calculator or rely on an EOR partner to handle accurate payroll processing. Standard labor laws in Austria include a 40-hour work week and a minimum of 25 days of paid annual leave.

Total Cost of Employment in Austria

Estimate the full employer cost in Austria, including gross salary, income tax (estimated), Social Security contributions, paid leave reserve, and an estimated EOR fee.

Employee Deductions

Income Tax (estimated): EUR

Social Security (Employee): EUR

Net Salary (estimate): EUR

Employer Contributions

Social Security (Employer): EUR

Paid Leave and Benefits Cost (reserve): EUR

Estimated EOR Service Fee: EUR

Total Employer Cost (estimate) EUR

Hiring Challenges in Austria and How an EOR can solve Them

Hiring employees in Austria can be challenging for foreign companies due to strict labor rules, payroll obligations, multilingual documentation, and sector-specific compliance requirements. Austrian employment law regulates contracts, working hours, pay structures, leave entitlements, and termination procedures, all of which require precise handling to remain compliant.

Employers must also manage mandatory contributions to the social security system, ensure correct payroll reporting to the Austrian Health Insurance Fund (ÖGK), and follow collective bargaining agreements (Kollektivverträge) which are standard across most industries and often mandate 13th and 14th-month salary payments.

Recruitment in Austria can be competitive in industries such as IT, manufacturing, engineering, tourism, and life sciences, where the demand for skilled workers continues to rise. In addition, many Austrian professionals value strong social protections and work-life balance, making retention strategies and clear employment terms critical.

Cultural factors also play a role. Austrian workplaces often value stability, formal communication, and predictable schedules, which can differ from the practices of foreign employers.

This is where an Employer of Record (EOR) in Austria becomes a strategic advantage.

Key advantages of using an EOR in Austria:

  • The EOR becomes the official employer for legal and administrative purposes, handling every step of HR, payroll, tax compliance, and employee documentation in Austria. This ensures all contracts, benefits, and contributions follow national regulations — without requiring your company to open an Austrian legal entity.

    An EOR also makes it possible to hire Austrian employees quickly, onboard them smoothly, and stay compliant from the first day of employment.

    • Compliance assurance:
    The EOR manages all legal and payroll obligations, ensuring every contract, contribution, and report meets Austrian labor and tax laws.

    • Lower setup costs:
    You avoid the need to create a local company, hire accountants, or manage local registrations.

    • Fast hiring:
    Onboard Austrian professionals in days instead of waiting months for entity registration and compliance setup.

    • Talent flexibility:
    Add or remove staff as your operations grow, without long-term local establishment commitments.

    • Reduced administrative risk:
    The EOR assumes employer-of-record responsibilities, including payroll accuracy, statutory contributions, and adherence to ÖGK and tax authority requirements.

    Partnering with an EOR allows you to focus on business expansion while your provider manages every aspect of hiring and compliance — ensuring that your workforce in Austria is fully protected and legally compliant.

Choosing the Right Employer of Record in Austria

For companies entering Austria, partnering with an Employer of Record (EOR) streamlines hiring, ensures compliance with Austrian labor legislation, and removes the need to establish a local entity. Below are the main factors to consider when selecting the best EOR partner in Austria:

• Austrian Labor Law Expertise
Choose an EOR with a strong understanding of Austria’s employment regulations, including social security contributions to the OGK, income taxation, mandatory collective bargaining agreements known as Kollektivvertrage, and worker protections. This helps avoid compliance risks and administrative delays.

• Service Flexibility
Look for an EOR that provides end-to-end support, including payroll, contract management, statutory benefits such as the 13th and 14th-month salary payments, onboarding, and HR administration tailored to your workforce needs in Austria.

• Cost Transparency
Ensure the EOR provides predictable pricing with no hidden fees. Review how the cost structure aligns with Austria’s required employer contributions, including municipal taxes and the employer share of social insurance, and your company’s hiring budget.

• Technology and Automation
Select an EOR with a modern, automated platform for payroll processing, compliance tracking, and document management. Scalable tools will support your growth in Austria and across the region.

• Customer Support
Strong support is essential, especially for companies new to Austria. Choose a provider with responsive assistance, fast issue resolution, and the ability to handle cross-border communication efficiently.

• Local Presence
An EOR with in-country partners or offices in Austria offers deeper legal insight, better cultural understanding, and quicker handling of local administrative requirements through institutions like the Austrian Federal Economic Chamber.

Choosing the right Employer of Record in Austria is crucial for maintaining full compliance, managing employment risks, and supporting your long-term growth in Central Europe. Earlier in this article, we introduced several reputable EOR providers that operate in Austria. All are reliable, but if we narrowed it down to the top performers, these would be the ones best suited to support your expansion.

Top EOR Providers in Austria

Looking for a trusted Employer of Record (EOR) in Austria? The mentioned providers assist international companies in hiring employees in Austria without establishing a local entity. Each partner ensures comprehensive payroll processing, HR compliance, and workforce management, aligning with Austrian employment regulations and monthly reporting mandates. Compare these reputable Austria EOR providers to discover the best partner for your market entry or team growth.

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Conclusion

Expanding into Austria with the support of a trusted Employer of Record (EOR) is one of the most efficient and reliable ways to hire local talent while ensuring full compliance with Austrian labor legislation. An EOR partner manages payroll, contracts, benefits, and statutory reporting, allowing your business to operate locally without opening an Austrian legal entity.

To identify the best EOR provider in Austria, compare leading platforms on EORquotes.com. Our country guides make it easy to assess pricing models, local compliance expertise, platform quality, and service coverage before choosing the right partner.

Start today and discover which EOR provider offers the best combination of speed, compliance, and cost-effectiveness for your expansion into Austria.

Frequently Asked Questions (FAQs)

In Austria, employees are generally entitled to 25 working days of paid annual leave per year, based on a five-day work week. This translates to five weeks of vacation. After 25 years of service, the entitlement increases to 30 working days.

The official currency of Austria is the Euro (EUR). All statutory calculations, social security contributions, and salary payments must be processed in this currency.

While not a direct statutory requirement for all, 13th and 14th month payments, known as the holiday bonus and Christmas bonus, are established in almost all collective agreements. These payments are standard practice in the Austrian labor market and benefit from a preferential tax rate.

 

The Austrian Health Insurance Fund, known as the Oesterreichische Gesundheitskasse (OGK), is the primary body for social security and health insurance. Employers must register employees with the OGK before they officially begin work.

 

The statutory normal working time is 8 hours per day and 40 hours per week. However, many collective agreements define a shorter normal working week, often 38.5 hours. Maximum working hours are generally capped at 12 hours per day and 60 hours per week including overtime.

 

Austria operates a withholding system. The employer is responsible for calculating and deducting wage tax and social security contributions from the employee’s gross pay and remitting these funds to the Tax Office (Finanzamt) and the social security institutions monthly.

 

Notice periods for employers are generally governed by the Angestelltengesetz for white-collar workers, starting at six weeks and increasing with tenure. For employees, the statutory notice period is typically one month, though this can be extended by agreement up to six months.

 

Collective agreements, or Kollektivverträge (KV), are highly significant in Austria. They are negotiated between employer and employee representatives and set minimum standards for wages, bonuses, and working conditions across specific industries.

If a written employment contract is not signed, the employer is legally required to provide a Dienstzettel, which is a written statement outlining the essential terms and conditions of the employment relationship, immediately upon the employee starting work.

 


Legal References & Data Sources

All employment, payroll, and tax information on this page is derived from official Austrian government sources and statutory authorities to ensure factual accuracy and compliance with current law.

  • Angestelltengesetz (Employees Act) and Arbeitszeitgesetz (Working Hours Act) – published by the Austrian Federal Law Gazette (RIS).
  • Austrian Social Insurance (Dachverband der Sozialversicherungsträger): employer and employee contribution rates, health, pension, and accident insurance schemes – https://www.sozialversicherung.at
  • Federal Ministry of Finance (BMF): wage tax (Lohnsteuer) rules, payroll reporting, and national tax compliance – https://www.bmf.gv.at
  • Statistics Austria (Statistik Österreich): labor market, consumer price index (CPI), wage, and employment statistics – https://www.statistik.at

Data verified and last updated: November 2025.