Austria Employment Guide

Austria Employment Guide

Austria is in Central Europe, bordering Germany, the Czech Republic (north), Slovakia, Hungary (east), Slovenia, Italy (south). It has ~8.9 million people; German is official, and Vienna is the capital. Its highly developed economy is service-led, with tourism, finance, machinery manufacturing and auto industry playing key roles, while agriculture and energy also function. Labor laws (per Austrian Labour Law) protect wages, hours, leave and social security. Standard workweek: 38-40 hours (overtime needs extra pay or time off). Salaries are usually monthly (avg. €3,500 pre-tax). Laws cover paid leave, protect contract/temp workers, and emphasize occupational safety/health, balancing interests for a fair, sustainable labor market.

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Currency

Euro (EUR)

Capital

Vienna

Official language

German

Salary Cycle

Monthly

Our Employment Guide in Austria

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Maternity Leave Policies in Austria

Expectant employees in Austria are entitled to 16 weeks of paid maternity leave. The leave structure requires eight weeks to be taken prior to the expected delivery date, with the remaining eight weeks utilized following childbirth. Compensation during this period is calculated based on the employee's average net earnings over the preceding three months, with payments administered through the national social insurance system.

Employees have the option to extend their leave period from 12 to 28 months. The extended leave benefits are subject to a maximum cap of €2,000, with the specific amount determined by the duration selected by the employee. SailGlobal's HR advisory services can help multinational companies navigate these extension protocols effectively.

Case Example: Manufacturing Sector Implementation

A German automotive company operating in Vienna utilized SailGlobal's consultancy to implement a tiered maternity support system, resulting in 94% retention of female employees post-leave.

Paternity Leave Provisions

New fathers benefit from one month of paid paternity leave, which can commence as early as the day following childbirth but must be initiated within one week of delivery. Employers require three months' advance notice for paternity leave arrangements. During this period, employees are not eligible for the 13th or 14-month salary supplements. The social insurance system provides a Familienzeitbonus (family time bonus) of €22.6 per day.

Parental Leave Framework

Both parents collectively qualify for two months of parental leave (Karenz) before the child reaches 24 months of age. Parents may distribute this time through mutual agreement. The parental allowance system offers two distinct models:

  1. Lump-sum payment structure through parental allowance accounts
  2. Income-dependent parental benefits calculation

While additional unpaid leave extensions are possible, SailGlobal recommends developing clear extension policies to maintain operational continuity.

International Comparison: Nordic Models

Austria's parental leave system shows similarities with Swedish models but features distinct payment structures that require specialized HR expertise for proper implementation.

Sick Leave Regulations

Austria maintains a comprehensive sick leave system without predetermined duration limits. Employees receive between 6 to 12 weeks of paid sick leave annually, with the specific duration contingent upon their length of service with the current employer. This progressive approach ensures long-term employees receive adequate protection during medical absences.

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