HR and HR Software Guide

Country Overview

Austria consists of nine independent federal states, each with its own provincial government. The well-developed economy of the country is driven by the services sector which constitutes nearly two-thirds of the economy worth 284 billion Euros. Trade and industry comprise nearly a third of the GDP while agriculture contributes 1.5% to the GDP.

The average per capita GDP is nearly 32,800 Euros, which makes Austria one of the developed countries in the European Community. Exports are vital to Austrian economy, and main export commodities include motor vehicles and parts, machinery and equipment, paper, chemicals, metal goods, iron and steel, and food products.

Currency: Euro

Principal Language: German

Government: Federal Republic

Capital City: Vienna

Major Provinces:  Vienna, Graz, Linz, Salzburg, Innsbruck

Normal work schedule is 8 hours per day and 40 hours per week, subject to collective agreements. Shift workers may be asked to work up to 12 hours a day. Nursing mothers, pregnant women, and individuals under the age of 18 are not required to perform night work (work done between 10 pm and 5 am). Employees who work for at least 6 hours per day are entitled to a rest period of 30 minutes under the Working Time Act.


Austria has 13 statutory public holidays. Employees who work on holidays are entitled to a 100% premium over their regular wages. The holidays are:

  • January 1 – New Year’s Day
  • January 6 – Epiphany
  • Easter Monday
  • International Workers’ Day (May 1)
  • Ascension Day
  • Whit Monday
  • Corpus Christi
  • Assumption (Aug. 15)
  • Austrian National Holiday (Oct. 26)
  • All Saints’ Day (Nov. 1)
  • Immaculate Conception (Dec. 8)
  • Christmas (Dec. 25)
  • St. Stephen’s Day (Dec. 26)

Annual Leave
Employees are entitled to 5 weeks (30 days) of paid leave to employees for every year of employment. Employees who have worked for at least 25 years are entitled to receive 6 weeks of paid leave for every year of employment. Part-time workers have the same entitlement as full-time employees.

In the first 6 months of the first year of employment, leave entitlement is calculated based on percentage of time worked. Beginning in the 7th month of employment, the employee receives full leave entitlement.

If an employee falls sick for 3 or more calendar days while on leave, those days are not counted as leave (given the employee reports sickness and provides medical certificate). 

Prior to taking leave, the employee must come to an agreement with their employer on when they may take their leave.

Sick Leave
Employers must provide 6 weeks’ sick leave at full pay and 4 weeks’ leave at half pay. After exhausting their sick leave, employees receive extra sick leave paid for by the health insurance provider.

If the sick leave is taken due to a work-related illness or accident, employers should provide 8 weeks’ sick leave at full pay. After 15 years of employment, employers should provide 10 weeks’ sick leave.

Compassionate Leave
Employers must permit employees to take unpaid compassionate leave to care for terminally ill children or close relatives.

Maternity Leave
Pregnant employees can take paid maternity leave, beginning 8 weeks before birth and ending 8 weeks after child birth. For multiple births or cesarean, the work restrictions post-delivery are extended to a minimum 12 weeks. In case the maternity leave was reduced before delivery, the paid leave is extended accordingly after delivery to a maximum 16 weeks. Maternity pay is 100% of employees’ average wages in the last 13 weeks of employment. Following maternity leave, employees can also take parental leave.

Both employers and employees make contributions to social insurance to fund accident, sickness, unemployment, and pension benefits.

Current rates:

  • For employees: 18.12% of average wages up to 4,860 Euros
  • For employers: 21.48% of average wages

Old age pensions can be collected by men at the age of 65 and women at 60 years with a total of minimum 300 months’ coverage or at least 180 months of coverage in the last 30 years. The age for women to start receiving the pension will be raised gradually to 65 from 2024 to 2033.

Workers’ Compensation
After a period of work incapacity (27 weeks at the latest) due to illness or injury, concerned employees will receive a disability pension if their earning capacity has been reduced by at least 20%. The reduction has to be for more than 3 months and must be a result of occupational disease or an accident at work. In the event of total loss of earning capacity, employees may receive a monthly pension which is two-thirds of the average insured earnings over the previous year.

Simplify workforce management in Austria with Mihi HR Software.

  • Accelerate employee onboarding with established workflows and guided processes that allow your new employees to hit the ground running from day one.
  • Improve employee time tracking and leave management while ensuring compliance with local labor laws and work-time regulations.
  • Store, manage, and track employee data on a single, secure system. Improve access and visibility, while built-in guidelines help you maintain legal compliance and audit readiness.
  • Turn workforce data into actionable insights with extensive HR reporting and analytics. Make better, more informed decisions and accurately assess the status of your global teams.
  • Provide your employees with the support they need with 24/7 access to our Employee Helpdesk.
  • One HR software for your global needs
  • Ensured compliance with in-country employment and labor laws
  • Connectivity and integrations with ERP and Payroll systems
  • Better workforce data and increased visibility of global teams
  • Supporting 170+ countries and localized in 17+ languages
  • Improved employee experience with employee self-service functionality and 24/7 employee support

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