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Austria's comprehensive employment framework includes mandatory social insurance, portable Abfertigung Neu severance, and collective bargaining agreements that set 13th/14th month pay. Rippling manages ÖGK ASVG, MV Kasse, and Lohnsteuer compliance.
Austria has a sophisticated professional payroll market centered in Vienna, with Graz, Linz, and Salzburg as growing secondary hubs. The ÖGK ASVG social insurance system (employer ~21.7%), mandatory Abfertigung Neu portable severance fund (1.53%), and Kollektivvertrag (KV) sector-specific collective agreements are the defining payroll characteristics. The KV mandates 13th and 14th month salary payments in most sectors, adding 16.7% to annualized salary costs. Austria has no federal minimum wage — sector KV minimums apply.
Austrian GmbH (minimum €35,000 share capital, €17,500 cash minimum) requires notarial deed, Firmenbuch entry, ÖGK ASVG registration, and WKO (Chamber of Commerce) registration (3–5 weeks). KV (Kollektivvertrag) identification is required before drafting employment contracts — determines minimum salary grades, notice periods, and 13th/14th month payment schedule. Lohnzettel (payroll summary) must be filed with ÖGK by end of February annually.
Rippling runs Austrian payroll through a local GmbH entity. Configuration essentials: ÖGK ASVG registration; MV Kasse provider (Abfertigung Neu) from month one; KV identification per employer sector; 13th/14th month Aliquotierung (monthly provisioning); Lohnsteuer withholding with 6% rate for 13th/14th; home office allowance (€3/day); and Lohnzettel annual filing. Lead time: 2–3 weeks.
ÖGK ASVG employer: health 3.78%; pension 12.55%; unemployment 3.0%; AUVA accident 1.1%; Abfertigung Neu (MV Kasse) 1.53%; housing fund 0.5%; insolvency fund 0.1%; miscellaneous levies ~0.55%. Total: approximately 21.7% of gross. KV 13th month (Urlaubsgeld): ~8.33% additional annual provision. KV 14th month (Weihnachtsgeld): ~8.33% additional annual provision. Total employer on-cost: approximately 38–42% of monthly salary.
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ÖGK ASVG employee: health 3.87%; pension 10.25%; unemployment 3.0%; housing fund 0.5%. Total: approximately 18.12% of gross. Lohnsteuer (income tax): progressive — 0% up to €12,756/year; 20% €12,757–20,818; 30% €20,819–34,192; 40% €34,193–66,612; 48% €66,613–99,266; 50% above €99,267. 13th/14th month pay taxed at privileged flat 6% rate.
Austrian Lohnsteuer progressive rates 2024: 0% up to €12,756/year; 20% €12,757–20,818; 30% €20,819–34,192; 40% €34,193–66,612; 48% €66,613–99,266; 50% above €99,267. 13th and 14th month pay taxed at privileged 6% flat rate (up to €2,100 for each payment). Annual Lohnsteuerausgleich (payroll tax reconciliation) by employer in December. Rippling manages Lohnsteuer withholding and monthly remittance to Finanzamt by 15th.
Annual leave: 5 weeks (25 working days) for first 25 years; 6 weeks (30 days) from year 26. Public holidays: 13 national days. Sick leave: employer pays full salary for 6–12 weeks (seniority-based); ÖGK pays from week 7–13+ (70% of daily rate). Maternity: 8 weeks pre + 8 weeks post (ÖGK Wochengeld — maternity allowance). Parental leave (Elternkarenz): up to 2 years per parent (Kinderbetreuungsgeld from state). No statutory paid paternity leave.
Angestelltengesetz notice (employer): 6 weeks (1–2 years); 2 months (2–5 years); 3 months (5–15 years); 4 months (15–25 years); 5 months (25+ years). Notice dates: end of calendar quarter or end of calendar month (if agreed in contract). MV Kasse balance stays with employee on any termination after 3 years of contributions. Wrongful dismissal: Arbeits- und Sozialgericht can order compensation. Rippling manages termination process including ÖGK deregistration.
Lohnzettel (annual payroll summary): filed with ÖGK by end of February for all employees. Lohnsteuerausgleich (annual income tax reconciliation): employer conducts in December payroll. Annual ÖGK employer declaration. Rippling generates all year-end Austrian payroll filings.
Statutory: ÖGK ASVG social insurance — health (employer 3.78%), pension (employer 12.55%), unemployment (employer 3%), accident (AUVA — employer 1.1%); Abfertigung Neu (MV Kasse — employer 1.53% monthly into portable severance fund); housing fund (Wohnbauförderungsbeitrag — employer 0.5%); insolvency fund (0.1%). KV (Kollektivvertrag) typically mandates 13th month (Urlaubsgeld — June) and 14th month (Weihnachtsgeld — December) — each 1 month's salary. Market standard: supplemental health insurance (private specialist access), sport/wellness benefit, home office allowance (€3/day tax-free), public transport pass. Total employer on-cost: approximately 38–42% of monthly salary.
Abfertigung Neu (Mitarbeitervorsorgekasse — MV Kasse) is Austria's portable severance fund for employment contracts from January 1, 2003. The employer contributes 1.53% of gross monthly salary into the employee's individual MV Kasse account from the first month. The fund vests after 3 years. On any termination, the balance stays with the employee (portable to next employer). This eliminates the sudden large cash termination payment of the old Abfertigung Alt system. Rippling manages MV Kasse contributions and provider enrollment.
Austria's Kollektivvertrag (KV — collective bargaining agreement) determines: minimum salary grades; notice periods; 13th and 14th month payment schedule; and other sector-specific conditions. The applicable KV is determined by the employer's primary business activity (NACE code). Most tech companies fall under the KV für Angestellte der Industrie. Rippling identifies the correct KV for each engagement before employment contracts are drafted.
Austrian 13th month (Urlaubsgeld) is paid in June and 14th month (Weihnachtsgeld) in December, each equal to 1 month's gross basic salary per the applicable KV. Both are subject to a privileged 6% flat Lohnsteuer rate (significantly lower than regular salary). Together they add approximately 16.7% to annualized salary cost. Rippling provisions both monthly (Aliquotierung) and pays them per the KV schedule.
Austria has no federal national minimum wage. The applicable KV for each sector sets minimum salary grades (Gehaltsschema). Most KVs have been significantly raising minimums — the Austrian Chamber of Labour (AK) targets €2,000/month gross across all CBAs. Rippling applies the correct KV minimum salary grade for each employee's role classification.
