The landlocked nation of Austria is a federation of nine states, one of which, Vienna, is the capital. Austria, considered as one of the richest countries in terms of GDP per capita, has a high standard of living, and was ranked 11th in the Legatum Prosperity Index 2021 on account of its journey to prosperity. Along with a highly developed industry, tourism is also an essential part of the Austrian economy.

Major economic hubs:

Vienna, Upper Austria, Lower Austria

Skills in demand :

Construction Joiners, Nursing Professionals, Data Processing, Mechanical Engineering, Power Engineering.

Resident Tax Information

All resident individuals are taxed on their worldwide income, but non- residents only pay when they make money there which makes it easier for them, since most people don't know how much taxes apply to specific types or sources.

Social Security

The contribution that both employers and employees pay toward social security is a mandatory requirement in Austria.                                          

The rate of contributions are as below —

Statutory Benefits

The employee benefits that an employer must provide their employees in Argentina include:    

Work hours and overtime pay        

The Austrian Working Hours Act; Working Hours Rest Act and The Collective bargaining agreements set the regulation of working hours in Austria.  

In Austria, the standard workweek is 40 hours with eight per day. Employees may not exceed 12 hour days (including overtime) and 48 total for any given period of time at their job - including 17 consecutive weeks without working multiple shifts or weekends).

Austria offers one of the highest overtime pay rates in Europe. Overtime is 150% an employee’s regular hourly rate for each extra hour worked, and employees can opt to receive their usual amount in paid time off or 1:1 ratio whichever comes first (or greater).                              

The 13th and 14th-month salary

In Austria, it is customary to pay both 13th and 14th month salaries in equal installments. For this reason employees are granted with two months worth of earnings at the end - June for summer wages or November when paying out winter payments during annual accounting periods

Statutory leaves

The laws of Austria require all employers to provide the statutory leaves as explained in the previous section

Social security contributions

The mandatory social security system in Austria covers sickness, unemployment and other miscellaneous benefits. Employees must contribute to the payrolls with a portion going towards their own insurance coverage while employers deduct some money from each paycheck for this purpose as well- it's not just something you pay when someone becomes disabled or loses wages through injury.

Fringe Benefits

In Austria, fringes benefits are given to employees. These can be either monetary or non-monetary depending on the business requirements and budgets set for providing them as well as what goals one might want their company reach through this practice of offering perks that help attract quality staff members who will work hard towards achieving those objectives.

• Meal vouchers
• Additional paid time off
• Commuting expenses
• Flexible working hours
• Home office setup

Exempt Benefits

Certain exempt benefits in Austria include —

• Every year, all Austrian employees are entitled to a standard allowance of EUR 132. Any expense exceeding this preset amount is allowed; however employers must support it with relevant receipts (certain examples include continuing education courses or office space).

• Social security contributions

• Membership fees to organizations include the Chamber of Labor, workers council, etc.

• Commuting expenses between the place of work and residence. The standard deductions can be claimed monthly.

• Equipment used for work and special work clothes Business-related travel expenses  Training costs  Technical literature

• Certain relief allowances are available for employees with an annual income that does not exceed EUR 60,000. These allowances include —  
• Accident, life, and sickness insurance premiums and,
• Voluntary contributions toward employer pension plans

• Church Tax contributions are exempt up to 10% of the amount contributed.
  

Long-term Incentives

In order to motivate their employees and reward them for achieving long term goals, some employers offer these types of incentives. This is a great way that an organization can show appreciation while also shaping the future workforce by promoting hard work and dedication at key positions within its company.

Commonly provided long-term incentives in Austria include —                                            

• Voluntary contributions toward employer pension plans

• Additional group life insurance plans, dental covers, and health insurance

• Performance-based incentives

• Certain employers also provide employee stock options to key employees with a strategic positions

Termination Process

Termination in Austria can be done on a mutual consent basis, which can be communicated in verbal or written format, of which the latter is preferred. There can also be dismissal of the employee by the employer on the grounds of a justified reason. When an employee decides to resign, the employment is terminated with immediate effect. In case of expiration of fixed contract, no action is required.

Notice Period

The notice period for both probationary and permanent employees in Austria ranges from 6 weeks to 5 months.

Severance Pay

Employers must provide severance pay at the rate of 1.53% of their gross monthly salary to the severance pay fund, known as ‘Abfertigungskasse’.