Hiring Employees in Austria: A Comprehensive Guide (2026)

Austria is one of Europe's most attractive markets for skilled talent: a highly educated workforce, excellent infrastructure, a central location with access to markets across the continent, and political stability that makes long-term headcount planning realistic.

Austria is also one of the more demanding hiring destinations for foreign employers. Collective bargaining agreements (Kollektivverträge, or KVs) govern pay floors and working conditions across more than 800 sectors.

A mandatory severance fund contribution starts on day one of every employment relationship.

Entity setup takes months and carries real administrative overhead. And the cost of getting any of it wrong, from worker misclassification to a missed registration deadline, lands directly on the employer.

What makes Austria worth the effort?

The workforce is highly skilled, particularly in engineering, technology, life sciences, and financial services. Vienna consistently ranks among the world's most livable cities, making it a strong draw for international talent.

Austria's central position makes it a natural regional hub for companies hiring across Central and Eastern Europe. And for companies already operating in the EU, Austria's regulatory framework is predictable and rule-bound (demanding, yes, but consistently so), which is a genuine advantage over less-codified jurisdictions.

This guide gives HR leaders, founders, and finance teams a complete picture of what it takes to hire and manage employees in Austria in 2026:

• the employment-law framework

• payroll and tax obligations

• statutory benefits

• the Employer of Record case

• visas

• termination rules

• step-by-step hiring process

Where Deel's EOR can remove friction, we say so directly. Where compliance is non-negotiable regardless of the hiring structure, we spell that out too.

Austria employment law: what every employer must know

Austrian employment law operates in layers. Statutory minimums set the floor. Kollektivverträge (KVs) are sector-specific collective agreements negotiated between employer associations and trade unions. They typically improve on statutory minimums and are legally binding on all employers in the covered sector, whether or not they are union members.

Works councils (Betriebsräte), where they exist, can negotiate further company-level improvements through Betriebsvereinbarungen (works agreements). The practical result: what you owe an Austrian employee depends on which KV applies and, in larger companies, what any relevant works agreement adds on top.

Understanding each layer before drafting a contract or making an offer isn't optional. Austrian employment relationships are governed by whichever rule is most favorable to the employee, a principle known as the Günstigkeitsprinzip.

Employment categories and status

Austria recognizes several distinct employment categories, each carrying different rights and employer obligations. The primary distinction for most foreign hirers is between employees and independent contractors (Neue Selbständige), but the white-collar/blue-collar split also matters for understanding the historical notice-period framework.

Written-statement requirement (Dienstzettel)

Under §2 of the AVRAG (Arbeitsvertragsrechts-Anpassungsgesetz), employers must provide a written statement of employment terms — either a full written contract or a separate Dienstzettel — on or before the employee's first day.

The document must state the parties, start date, job title, place of work, salary, applicable KV (including the employee's grade within it), agreed working hours, annual leave entitlement, and the applicable notice period. Issuing it late does not automatically void the employment relationship, but it creates risk: an employee can claim terms more favorable than the employer intended if the Dienstzettel is missing or incomplete.

Collective agreements (Kollektivverträge)

Austria has no single statutory minimum wage. Instead, Kollektivverträge — sector-specific agreements binding on all employers in the covered sector — set minimum pay, working conditions, overtime premiums, and often notice periods for each occupational grade and seniority level.

As of 2026, most major KVs have set entry-level minimums at €1,800–€2,000 per month or above. These aren't soft benchmarks — they're legally binding floors. The Austrian USP employer portal provides access to the current text of KVs by sector. Eurofound data indicates that collective agreements cover approximately 98% of Austrian workers — one of the highest coverage rates in the EU.

Working-time rules

The Arbeitszeitgesetz (AZG) sets normal daily working time at a maximum of eight hours and normal weekly working time at 40 hours. By agreement, daily time can be extended to 12 hours and weekly time to 60 hours, provided the 17-consecutive-week rolling average remains at or below 48 hours per week (the EU Working Time Directive maximum).

Overtime above the contractual or KV-standard hours attracts a statutory premium, typically 50% under most KVs.

Statutory holidays

Austria has 13 national public holidays per year. Employees working on a public holiday are entitled to their regular pay plus a holiday supplement under most KVs.

2026 employment-law reform highlights

The most significant 2026 developments touch immigration rather than domestic employment law directly. The income-tax thresholds were indexed upward by 1.73% to offset cold progression, raising the tax-free threshold to €13,539.

Austria's labor migration framework was overhauled by a parliamentary package: salary-threshold verification for work permits now operates on a per-pay-period basis (replacing the previous annual assessment), several thresholds were raised, and the shortage occupation list was revised.

Additionally, from January 2025, Austria expanded the definition of "Telearbeit" (remote working) to include work from locations beyond the primary or secondary home — coworking spaces, cafés, and hotels — under a written remote-work agreement.

For a practical primer on how to hire and pay remote workers in Austria, including day-to-day compliance for cross-border arrangements, see our dedicated guide.

Working time, minimum wage, and statutory holidays

The statutory annual leave baseline under the Urlaubsgesetz is 25 working days per year for employees on a five-day working week (30 working days for a six-day working week).

The vacation year typically runs from the employment start date rather than the calendar year. Full entitlement is generally available after the first six months; in practice, most employers allow leave to be taken from month one subject to mutual agreement.

Part-time entitlement is prorated to the contracted working days per week. Annual leave cannot be unilaterally forfeited: if an employee cannot take their leave due to illness or another excused reason, it carries over.

A statutory 13th salary (Urlaubsgeld, holiday bonus) and 14th salary (Weihnachtsgeld, Christmas bonus) are the norm under virtually all Austrian KVs — meaning Austrian employees receive 14 monthly salary payments per year.

These special payments receive preferential tax treatment: the first €620 of each is fully tax-free, and the remainder is taxed at a flat 6% rate (up to the ASVG special-payments ceiling), making them considerably more tax-efficient for both employee and employer than taxing the equivalent amount as regular monthly salary.

Employers budget for these payments in June and November or December, depending on the KV. They are mandatory where the applicable KV requires them — which is nearly universal in practice.

Right-to-work checks and data protection

Before employing any non-EU/EEA national in Austria, the employer must verify that the candidate holds a valid work authorization: a Red-White-Red Card, EU Blue Card, ICT permit, or other recognized title.

Austria does not operate a centralized online share-code verification system comparable to some other EU member states. The employer retains copies of the work-authorization document and keeps them on file, available for inspection by the Finanzpolizei.

Austrian data-protection law for HR purposes is governed by both the General Data Protection Regulation (GDPR) and the national Datenschutzgesetz (DSG).

The practical obligations for employers include:

• processing employee personal data only on a lawful basis (typically the performance of the employment contract, compliance with a legal obligation, or, for sensitive data, explicit written consent)

• limiting data retention to what is necessary for the purpose

• implementing appropriate technical and organizational security measures

• appointing a data-protection officer where the headcount or processing volume triggers the GDPR threshold

• Pre-employment background checks must be proportionate to the role — collecting criminal-records data for roles that don't require it is a DSG violation, not just a procedural misstep.

Payroll, tax, and employer costs explained

Austria operates a PAYE (Pay As You Earn) system — employers withhold Lohnsteuer (wage tax) from gross pay each month and remit it to the Finanzamt (district tax office) by the 15th of the following month.

Social security contributions under the ASVG (Allgemeines Sozialversicherungsgesetz) follow the same 15th-of-month deadline, paid to the relevant health insurance carrier — typically ÖGK (Österreichische Gesundheitskasse) for private-sector employees.

Payroll is filed monthly, and the remittance deadline is strictly enforced: late payment attracts interest at 2% annually plus a late-payment surcharge.

Austrian payroll is typically run via ELDA (Elektronischer Datenaustausch mit der Sozialversicherung), the social-insurance electronic filing system.

All payroll documentation must be retained for at least seven years for audit and compliance purposes.

For a structured breakdown of how to reduce payroll costs in Austria through legitimate planning (salary structuring, benefit design, KV-grade optimization), Deel's dedicated guide covers the main levers available to employers without crossing compliance lines.

Income tax brackets and employee withholding

Austria's income tax (Einkommensteuer/Lohnsteuer) is progressive across seven brackets.

For 2026, all thresholds (except the top €1-million bracket) were indexed upward by 1.7333% — two-thirds of the measured 2.6% inflation rate for the relevant period — under Austria's annual cold-progression compensation mechanism. This is the third and final year of the automatic indexation introduced in 2023. The 2026 thresholds are:

Source: Austrian Federal Ministry of Finance (BMF) via USP.gv.at

A few important mechanics: rates apply to taxable income, not gross salary (employee ASVG contributions of ~18.07% and standard allowances reduce the taxable base first).

The 13th and 14th salary special payments receive favorable treatment: the first €620 of each is fully tax-free, and the remainder is taxed at 6% flat up to the annual ASVG ceiling.

Employer social contributions and levies

The ASVG headline rate understates total employer payroll costs. Beyond social security, several supplementary contributions apply:

Adding the regular ASVG rate (~20.98%) to the supplementary mandatory levies (Abfertigung Neu 1.53% + FLAF 3.7% + Kommunalsteuer 3% + IESG 0.1%) brings total mandatory employer on-costs to approximately 29–30% of gross monthly salary for a typical domestic employer.

The ASVG contribution ceiling is an important planning consideration for higher-salary roles. For 2026, contributions apply only up to €6,930 per month for regular pay (and €13,860 per year for special payments). Earnings above this threshold carry no further ASVG liability.

Employer cost example

To make these rates concrete, the table below illustrates the approximate total annual employer cost for an employee on a gross annual salary of €60,000 — structured as 12 regular months plus 13th and 14th salary payments, which is the standard Austrian structure under most KVs.

This table is for illustration only. Actual figures vary by province (WK levy), sector (KV provisions), and whether the ASVG ceiling is reached across all pay periods.

A note on the 14-payment structure. The employer-cost calculation above already includes the 13th and 14th salary as part of the total annual gross — meaning the annual employer cost includes 14 monthly salary payments, each attracting its own ASVG and other contribution liability.

If you're benchmarking Austrian compensation against markets where only 12 monthly payments are standard (e.g., the US or UK), adjust the comparison to reflect that an Austrian employee on "€60,000 per year" is receiving 14 payments of approximately €4,286 each — not 12 payments of €5,000. This distinction matters when comparing offers across markets.

Pension and retirement

Austria operates a three-pillar pension system.

The first pillar is the statutory state pension (Pensionsversicherung), funded by ASVG contributions (10.25% employee + 12.55% employer on the capped base).

The second pillar is the occupational pension — Austria's Abfertigung Neu BV-Kasse is sometimes described in this frame, though it is legally a severance fund rather than a pension scheme.

Voluntary employer contributions to private pension vehicles (betriebliche Altersvorsorge) receive favorable tax treatment and can form part of a competitive benefits package for senior roles.

Statutory benefits and leave entitlements

Austria requires an extensive set of statutory employee benefits, and most components are mandatory from the first day of employment. Austrian law does not permit waiting-period exclusions that a foreign employer can impose unilaterally — if the KV grants a benefit, it applies from day one or the KV-specified date, regardless of what the employer's global policy says.

• Annual leave. The statutory minimum is 25 working days per year for a five-day working week under the Urlaubsgesetz. Most KVs provide more generous entitlements for longer-tenured employees. Unused leave cannot be forfeited — it carries over or must be paid out on termination. The right to carry forward leave is particularly relevant when an employee is on extended sick leave or parental leave during the leave year.

Sick pay. Employer-funded sick pay in Austria scales with length of service:

• Less than 1 year of service: 6 weeks at full pay (42 calendar days), followed by 4 weeks at half pay

• More than 1 year of service: 8 weeks at full pay (56 days), followed by 4 weeks at half pay

• 15 or more years of service: 10 weeks at full pay (70 days), followed by 4 weeks at half pay

• 25 or more years of service: 12 weeks at full pay (84 days), followed by 4 weeks at half pay

After the employer-paid periods, social security (Krankengeld, sickness benefit) takes over — paid at a daily rate set by ÖGK. Employers should plan for these absences: for long-tenured employees on higher salaries, a 12-week full-pay obligation can represent a significant unplanned cost if not budgeted.

Parental and family leave

Austria provides maternity protection, parental leave, and one month of paternity leave through a detailed statutory framework. Each leave type operates under different rules for timing, duration, and who bears the cost.

Employees returning from Karenz have a statutory right to reinstatement in the same or a comparable role. The employer may not terminate an employee during Mutterschutz or Karenz, and dismissal protections extend for a period after the return. Workplace compliance with these rules is monitored by the Arbeitsinspektorat (Labour Inspectorate).

Severance and the Abfertigung Neu fund

For all employment contracts entered into from 1 January 2003 onward, the Abfertigung Neu system replaced the older lump-sum severance (Abfertigung Alt). The key mechanics:

• Rate: the employer pays 1.53% of monthly gross salary — including 13th and 14th salary payments — into a licensed employee provident fund (Betriebliche Vorsorgekasse, or BV-Kasse) from the first month of employment.

• Portability: the fund accumulates in the employee's name and is portable when they change employers. The new employer continues contributions into the same BV-Kasse, or a new one is selected.

• No employer liability at termination: unlike Abfertigung Alt, there is no lump-sum severance obligation at termination under Abfertigung Neu. The BV-Kasse fund is the entirety of the employer's severance-related obligation. Employees can access the fund after termination by the employer, or after resignation following at least 3 years of contributions.

• Investment growth: BV-Kasse funds are invested by the licensed fund manager, meaning the employee's accumulated balance may grow beyond the sum of contributions over time.

The practical effect for employers is straightforward. Employers must budget 1.53% of gross payroll per month for the BV-Kasse from the first month of employment, enroll the correct BV-Kasse before the first payroll run, and track contributions accurately. Gaps in BV-Kasse contributions are auditable by the BV-Kasse and ÖGK.

• Health and safety. Employers must assess workplace risks, implement appropriate safety measures, provide safety training, and appoint a safety officer (Sicherheitsvertrauensperson) where headcount triggers the threshold under the Arbeitnehmerschutzgesetz (ASchG). For office-based and remote roles, the main obligations concern ergonomic workstation setup, display-screen equipment guidelines, and, where applicable, mental-health risk assessment. Remote workplaces under the 2025 Telearbeit framework must also meet applicable safety standards.

• Non-discrimination and equal treatment. Austrian law prohibits discrimination on grounds of gender, age, ethnicity, religion or belief, disability, or sexual orientation in hiring, pay, and working conditions, under the Gleichbehandlungsgesetz (GlBG). The Gleichbehandlungsanwaltschaft (Equality and Diversity Ombudsperson's Office) investigates complaints and can refer cases to the Gleichbehandlungskommission. Claims for compensation can be brought directly to the Arbeitsgericht.

Hiring without an Austrian entity — how an Employer of Record works

Setting up an Austrian GmbH (Gesellschaft mit beschränkter Haftung — the standard limited-liability company structure for small and mid-market businesses) involves minimum share capital (€35,000, of which at least €17,500 must be paid in at incorporation), notary fees, Commercial Register (Firmenbuch) registration, ÖGK registration, Finanzamt enrollment, and in most cases, WKÖ (Chamber of Commerce) membership.

The process typically takes two to three months end-to-end, depending on the complexity of the articles of association and the turnaround time at the local Commercial Court.

Running the entity adds ongoing accounting, audit, and corporate-secretarial overhead, regardless of headcount — annual financial statements must be filed with the Firmenbuch, and a GmbH with more than two shareholders or a sole-shareholder structure requires a formal managing director (Geschäftsführer) who is personally liable for tax and social-security filing obligations.

For companies that want to hire in Austria quickly — or hire a small number of employees without committing to entity overhead — an Employer of Record (EOR) offers a structurally different path.

Under an EOR arrangement, Deel acts as the legal employer of record in Austria. You direct the day-to-day work, define the role and compensation, and manage the employee relationship. Deel handles employment contracts (drafted to comply with Austrian law and the applicable KV), payroll (ASVG, Lohnsteuer, BV-Kasse, FLAF, and Kommunalsteuer), and the employer-side compliance obligations covered by the EOR arrangement, adapting relevant employment processes as Austrian requirements change.

The distinction between what you retain and what the EOR takes on is important to be clear about before choosing this structure. In practice, the split is straightforward: Deel is the entity with Austrian legal employer status and payroll obligations; your company is the party that designs the role, manages performance, determines compensation (within Deel's compliance guardrails), and decides when the employment ends. The employee works for you in every operational sense.

The EOR model does not create a permanent establishment (PE) for the client company in most standard structures — but this is a tax-law question specific to your company's circumstances, and a tax adviser should assess permanent-establishment risk accordingly.

For more on the strategic factors behind the EOR-vs.-entity decision, see EOR vs. own Austrian entity: strategic considerations.

Worker misclassification risk in Austria

Engaging someone as a Neue Selbständige (independent contractor) when the relationship is functionally that of an employee is a serious compliance risk in Austria. The concept of Scheinselbständigkeit (bogus self-employment) describes this pattern — and Austrian enforcement authorities treat it as fraud, not merely a technical error.

The criteria Austrian authorities apply when assessing the true nature of a working relationship focus on economic and operational reality:

• Economic dependency: does the person work primarily or exclusively for one client?

• Personal performance obligation: are they required to perform the work personally, or can they subcontract?

• Integration: do they follow instructions about when, where, and how to work?

• Equipment: do they use the client's equipment, premises, or tools?

• Appearance: are they introduced to third parties as employees of the engaging company?

If multiple criteria point toward an employment relationship, the engagement is likely to be reclassified regardless of what the contract calls it. The relevant authorities — including the Finanzpolizei (financial police, which conducts workplace audits), ÖGK, and the Finanzamt — have joint enforcement authority and share data actively. The financial exposure on reclassification covers backdated ASVG contributions (both employee and employer shares), unpaid Lohnsteuer with interest, and administrative penalties for the full reclassified period. See the true cost of misclassification for a full breakdown of exposure.

EOR vs. own Austrian entity: side-by-side comparison

When to set up your own entity

An Austrian GmbH makes commercial sense when you have a stable, larger team, when local operations require a physical Austrian presence for legal or commercial reasons, when the company needs to bid for public-sector contracts requiring an Austrian-registered entity, or when the long-term per-head EOR cost exceeds the amortised entity overhead for your specific headcount.

The EOR and GmbH paths aren't mutually exclusive either — some companies use an EOR to hire their first Austrian employees quickly, then transition to a local entity once the business case for a permanent Austrian presence is established.

See entity setup in Austria for a step-by-step cost-and-timing breakdown if you're evaluating the entity route.

Step-by-step guide to hiring an employee in Austria

Hiring compliantly in Austria follows a defined sequence. Several steps must be completed before the employee's first day — not after — and missing a pre-start requirement creates legal exposure regardless of when it's corrected.

The seven steps below apply to direct Austrian entity hires. Where the EOR model makes a step Deel's responsibility rather than yours, we say so.

Step 1: Choose your hiring model

Before drafting any contract or making an offer, decide which hiring structure fits your situation: EOR, own entity, or independent contractor engagement. This decision is the most consequential one in the sequence — it determines every subsequent compliance obligation.

• EOR: fastest to hire; no Austrian entity required; Deel handles all payroll and compliance infrastructure. Best when you want to avoid the months often required to establish a local entity; onboarding time depends on the worker and required documentation.

• Own Austrian entity (GmbH): requires 2–3+ months of setup; appropriate for longer-term, larger-headcount commitments. See entity setup in Austria.

• Independent contractor: only appropriate when the relationship genuinely satisfies the Neue Selbständige criteria — the contractor has multiple clients, uses their own equipment, works independently of direction, and is genuinely economically independent. If any of those conditions don't hold, the engagement is misclassification risk. See employee misclassification penalties.

Step 2: Verify right to work

EU/EEA citizens have the right to work in Austria without a permit and without a labor market test. They must register with the Meldeamt (registration authority) if residing in Austria for more than three days.

Non-EU/EEA nationals require a work authorization before starting work. Verify the candidate holds one of the following before making a binding offer:

• Red-White-Red Card (Rot-Weiß-Rot Karte): for skilled workers in shortage occupations, very highly qualified workers, other key workers, and graduates. The 2026 shortage occupation list covers 64 nationwide and 66 regional shortage occupations under the Fachkräfteverordnung 2026 — published by the Federal Ministry of Labour and Economy based on AMS labor market data.

• EU Blue Card: for highly qualified third-country nationals meeting the minimum salary threshold (revised upward in 2026's immigration reform package).

• ICT permit: for intra-company transferees on assignments up to three years.

• Existing residence title with work authorization: e.g., settlement permits, family reunification titles, or recognition decisions that carry work rights.

Retain a copy of the work-permit document in the employee's file. The Finanzpolizei can conduct spot audits of work-right documentation at any time, with no advance notice required.

Step 3: Draft and issue a compliant employment contract

The employment contract or Dienstzettel must cover every element required by §2 AVRAG:

• Names and addresses of both parties

• Employment start date

• Job title, role description, and primary place of work

• Applicable Kollektivvertrag and the employee's grade within it

• Gross monthly salary and any agreed supplements

• Agreed weekly working hours

• Annual leave entitlement

• Notice period (by reference to the statutory schedule or the applicable KV)

• Any probationary period agreed (maximum one month)

The contract must be in German, or bilingual (German + another language), to be enforceable in Austrian courts. The salary must meet or exceed the KV minimum for the applicable grade and seniority level. Through its EOR solution, Deel provides employment agreements designed for Austrian requirements, including applicable KV and AVRAG terms.

Step 4: Register with the local tax/payroll authority

Before the employee's first day, complete the following registrations:

• ÖGK pre-employment notification (Anmeldung): filed electronically via the ELDA system before the employee starts work. This creates the ASVG registration and is strictly required before commencement — not within a grace period after.

• Finanzamt employer registration: register as an employer with payroll obligations if not already registered. The Finanzamt processes Lohnsteuer remittances from the employer side.

• BV-Kasse enrollment: select a licensed BV-Kasse from the approved list and notify them of the new employment relationship, so Abfertigung Neu contributions begin from the first payroll cycle.

Monthly deadlines are firm: Lohnsteuer and ASVG contributions are both due by the 15th of the month following the pay period. Late payments attract interest and surcharges.

Step 5: Set up pension/benefits enrollment

Enroll in the selected BV-Kasse before the first payroll run. From month one, remit 1.53% of the employee's monthly gross salary (including any 13th and 14th salary payments when they fall due) to the BV-Kasse. Track contributions monthly — the BV-Kasse issues annual statements to both employer and employee.

If the company offers supplementary benefits — private health insurance supplements (Zusatzversicherung), transportation subsidies (Jobticket), meal vouchers (Essenszuschuss), or group life cover — document these in the employment contract or a separate written agreement. Many of these have specific tax and social-insurance treatment under Austrian law.

Step 6: Run the onboarding workflow

• Issue the signed employment contract or Dienstzettel on or before the employee's first day — not after.

• Conduct any safety and health briefings required under the Arbeitnehmerschutzgesetz (ASchG) for the role

• Where a Betriebsrat (works council) exists, notify it of the new hire

• Arrange equipment provisioning: Austrian GDPR/DSG obligations apply to company-issued devices from the moment of issue, so device configuration and data-handling policies should be in place before the device reaches the employee

• Collect the employee's IBAN and BIC for SEPA payroll transfers. Austrian payroll is processed by SEPA bank transfer, typically on the last working day of the calendar month

Step 7: Maintain ongoing compliance

Austrian compliance is ongoing, not a one-time setup exercise. Build the following into your quarterly and annual rhythm:

• KV update cycle: most KVs are renegotiated annually, typically effective 1 January or 1 May depending on the sector. If the new KV minimum for the employee's grade exceeds their current salary, the employer must raise pay by the effective date — retroactive under-payments attract interest. Monitor sozialministerium.gv.at or the relevant industry association for KV negotiation outcomes.

• Payroll reporting cadence: Lohnsteuer and ASVG contributions are due by the 15th of each month for the prior month. Annual wage-tax statements (Lohnzettel) for each employee must be submitted electronically to the Finanzamt by the end of February.

• Annual leave tracking: unused leave accrues and cannot be forfeited. Implement a system for tracking leave and applicable carry-over rules.

• ASVG ceiling monitoring: for higher-paid employees, track when the monthly ASVG ceiling (€6,930 for 2026) is reached — contributions stop for that month, which affects both the employer's cost and the employee's net pay.

• BV-Kasse reconciliation: contributions must reconcile against each month's gross payroll. Discrepancies are auditable by the BV-Kasse and ÖGK.

Hiring internationally into Austria — visas and right to work

For non-EU/EEA workers, Austria's primary skilled-worker immigration route is the Red-White-Red Card (Rot-Weiß-Rot Karte, or RWR Card), a combined residence and work permit issued for up to two years and renewable. The system operates on a points-based assessment across education, work experience, language skills, and age.

The RWR Card for skilled workers in shortage occupations is the most accessible route for many foreign hirers in 2026. Its key features:

• No labor market test. Because Austria has already established through the Fachkräfteverordnung (Skilled Workers Regulation) that these roles cannot be filled from the domestic labor market, the standard Ersatzkraftverfahren (labor market clearance check through AMS) is waived for shortage-occupation applicants.

• Salary threshold linked to KV rather than a fixed statutory minimum. Unlike other RWR categories, the minimum salary for shortage-occupation applicants is set by the applicable collective agreement — making a broader range of compensation packages eligible and removing the need to meet a single high national threshold.

• Reduced points threshold. Shortage-occupation applicants need 55 points (versus 70 for other skilled-worker categories), with a +10 point bonus for the shortage-occupation designation itself.

• 2026 shortage occupation list. The Fachkräfteverordnung 2026 — published by the Federal Ministry of Labour and Economy — covers 64 nationwide shortage occupations and 66 regional shortage occupations. High-demand areas include IT and digitalization (software developers, data scientists, cybersecurity), engineering (mechanical, electrical, automotive), healthcare (nurses, elderly care, physiotherapists), construction trades (electricians, plumbers), and railway professions.

EU Blue Card

For highly qualified third-country nationals with a university degree and a job offer meeting the statutory minimum salary, the EU Blue Card offers an alternative to the RWR Card — with a faster pathway to permanent residence (21 months, or 18 months with B1-level German).

The 2026 immigration reform package raised the EU Blue Card salary threshold; confirm the current AMS salary threshold for the specific role before initiating an application.

ICT permit

For intra-company transferees — managers, specialists, or trainees — the ICT permit allows assignments in Austria of up to three years without applying for a national work permit, under the EU ICT Directive framework as transposed into Austrian law.

2026 immigration reform

A parliamentary package enacted in 2026 brought the most consequential changes to Austria's labor migration framework in over a decade:

• Per-pay-period salary verification. The previous practice of assessing salary adequacy annually has been replaced by a per-pay-period check — sponsors must now ensure each individual payslip meets the minimum threshold, not just the annualised total.

• Raised thresholds. Minimum gross salary figures for the "very highly qualified workers," "other key workers," and EU Blue Card categories have all been recalibrated upward.

• Revised shortage occupation list. Several roles were added and others removed or reclassified. HR teams with existing sponsorship files must verify that their roles still qualify under the revised list.

• Strengthened documentation requirements. Record-retention obligations for sponsored employees have been expanded; sponsors should treat compliance as an ongoing obligation rather than a one-time filing.

How Deel handles visa sponsorship

When you hire through Deel's EOR solution in Austria, Deel acts as the legal employer and can manage the immigration-support process in-country. Deel Mobility provides immigration support for eligible EOR hires who require an Austrian work permit, subject to eligibility and local authority requirements.

EU/EEA free movement

Citizens of EU and EEA member states (and Switzerland under the bilateral agreements) have the right to work in Austria without a permit and without a labor market test. They must register with the local Meldeamt within three days of taking up residence, and EU citizens residing for more than three months may obtain an EU Registration Certificate (Anmeldebescheinigung).

This registration is not a work permit — it is a residency formality. Family members of EU/EEA citizens who are themselves non-EU/EEA nationals are entitled to a Residence Card (Aufenthaltskarte) after completing a short registration process.

Points-assessment for other RWR Card categories.

• Very highly qualified workers (Besonders Hochqualifizierte): for senior professionals with exceptional achievements in science, research, or business — typically requiring a university degree plus documented impact (publications, patents, significant management roles). Requires 70 points; the minimum-salary threshold is set at a higher statutory fixed rate.

• Other key workers (Sonstige Schlüsselkräfte): for workers filling a specific skills gap not covered by the shortage occupation list, meeting a higher fixed minimum gross salary. No labor market test waiver; the AMS assesses the application in the standard way.

• Graduates of Austrian universities: for recent graduates of Austrian higher-education institutions, allowing a 6-month job-seeker period post-graduation, convertible into a full RWR Card upon finding qualifying employment.

Termination, redundancy, and offboarding

Austrian employment law provides employees with meaningful procedural protections against dismissal, and the notice framework is detailed enough that getting it wrong — on the period, the termination date, or the works-council notification — creates legal exposure for the employer.

Fair-dismissal grounds

Austrian law does not require a substantive reason for ordinary notice-based termination (Kündigung). Either party can give notice without stating a cause, provided they observe the correct notice period and termination date.

However, employees can challenge a termination as sozialwidrig (socially unjustified) before the Arbeitsgericht (labor court) if they believe it disproportionately harms their social interests — particularly where the employee has long service, financial dependents, or limited re-employment prospects, and the employer's business interest in the termination is comparatively weak.

The works council (if present) must be notified one week before notice is given and can formally object.

Immediate dismissal (Entlassung)

An employer can terminate immediately — without notice — only on serious grounds:

• persistent

• severe neglect of duties

• theft or fraud

• deliberate harm to the employer's business

• disclosure of trade secrets

• other conduct making continued employment objectively unreasonable

Immediate dismissal must be executed promptly after the employer becomes aware of the triggering event. Delayed action can be interpreted as condonation.

Notice periods (employer-side)

Since October 2021, when the blue-collar/white-collar notice-period harmonization was completed, a single unified schedule governs the vast majority of employment terminations across Austria:

These periods are encoded in the Angestelltengesetz and, since harmonization, in the parallel blue-collar provisions. Collective agreements may specify longer notice periods — and where they do, those apply under the Günstigkeitsprinzip.

Termination date (Kündigungstermin)

By default, an employer's notice of termination must expire at the end of a calendar quarter (31 March, 30 June, 30 September, or 31 December).

In practice, most employment contracts and KVs include a standard modification allowing termination to take effect on the 15th or the last day of any calendar month — this monthly termination date is extremely common.

An employer who gives notice without correctly aligning it with the applicable Kündigungstermin owes compensation for the resulting gap.

Employee notice period

An employee's own notice period is one month, terminable at the end of any calendar month, unless the KV or employment contract specifies otherwise.

Works council notification

Where a Betriebsrat exists, it must be notified at least one week before the employer issues a Kündigung. The works council may comment — but its opinion is non-binding.

Failure to notify makes the termination procedurally defective and legally challengeable.

Redundancy process

There is no distinct statutory redundancy procedure in Austrian law comparable to some other EU jurisdictions. Collective redundancies (affecting a defined percentage or number of employees, depending on total headcount) trigger a notification obligation to the AMS (Arbeitsmarktservice) before notices are issued — failure to notify can result in the terminations being null and void.

Large-scale restructurings may also require negotiation with the Betriebsrat over a Sozialplan (social plan) providing additional severance or redeployment support, though there is no statutory obligation to agree to one.

Specially protected employees

Certain employee groups have heightened dismissal protections that require prior approval from an external authority before notice can be given:

• Pregnant employees and those on Mutterschutz / Karenz: protected from termination throughout the protection period and for a period after return (typically four weeks). Any dismissal during this window requires prior approval from the Arbeitsgericht.

• Employees with significant disabilities (Behinderung): dismissal requires prior approval from the Sozialministeriumservice (the federal disability authority).

• Works council members and shop stewards: enjoy enhanced protection for the duration of their mandate and for a period afterward — dismissal requires Arbeitsgericht approval and is rarely granted except for serious cause.

• Employees in military reserve service: protected from termination during and immediately after service, under the Arbeitsplatzsicherungsgesetz.

These protections are not optional and are not curable by paying additional compensation in lieu.

Abfertigung Neu on termination. Under the Abfertigung Neu system (post-2003 contracts), the employer has no lump-sum severance liability at termination. The employee's accumulated BV-Kasse balance remains available to them — accessible after a termination by the employer or mutual agreement, or after the employee's own resignation following at least three years of BV-Kasse contributions.

The employer's obligation ends with the final BV-Kasse contribution for the last month of employment.

How Deel handles offboarding

When a worker employed through Deel's EOR is offboarded, Deel manages the applicable employer-side offboarding steps based on information and instructions provided by the client:

• calculating final pay (pro-rata annual leave, any outstanding 13th/14th salary pro-ration, and confirmation of BV-Kasse contributions through the last month)

• filing the ASVG de-registration with ÖGK electronically via ELDA

• issuing the mandatory Dienstzeugnis (service certificate) on the employee's request

• ensuring the annual Lohnzettel is submitted to the Finanzamt on schedule

This reduces the administrative burden and helps both parties complete applicable offboarding obligations accurately and on time.

Hire in Austria with Deel

Hiring in Austria requires employers to manage collective agreements, payroll registration, monthly contributions, and a detailed employment-law framework. The compliance stack — KVs, ASVG, BV-Kasse, Abfertigung Neu, right-to-work checks, ELDA registration, and the ongoing KV update cycle — reflects a national commitment to employer standards that Austrian workers, and Austrian enforcement authorities, take seriously.

For companies that don't yet have an Austrian entity, or that need to hire without first completing the months-long process of establishing a GmbH, Deel's EOR reduces the operational complexity while your company continues to direct the employee's day-to-day work. With Deel, you can:

• Hire in Austria without setting up a GmbH or local payroll infrastructure

• Get employment contracts designed for Austrian requirements, incorporating applicable KV terms, Dienstzettel requirements, and AVRAG mandatory clauses

• Run payroll under ASVG, Lohnsteuer, Abfertigung Neu (BV-Kasse), FLAF, and Kommunalsteuer rules, with monthly remittances handled under the EOR arrangement

• Get immigration support through Deel Mobility for eligible non-EU/EEA hires, including supported RWR Card and EU Blue Card routes

• Complete applicable employer-side offboarding steps — ÖGK de-registration, final-pay calculation, Dienstzeugnis, and Lohnzettel submission — accurately and on time

Book a demo below to see how Deel can help you hire in Austria.