Hire in Austria Without the Entity

Austrian law requires employers to pay two additional monthly salaries per year, known as Urlaubsgeld (holiday bonus) and Weihnachtsgeld (Christmas bonus). These are typically paid in June and November. They are taxed at a lower rate than regular salary, which actually benefits employees. Our payroll system handles these payments automatically.

In Austria, 98% of employees are covered by collective bargaining agreements negotiated between employer associations and unions. CBAs set minimum salaries, working hours, overtime rules, and other employment terms for specific industries. Even if your employee is not a union member, the CBA for their industry applies. We identify the correct CBA and ensure your contracts comply.

Our EOR fee is €599/month per employee. On top of that, you'll pay the employee's gross salary plus Austrian employer costs (approximately 30-35% for social security, Abfertigung contributions, and other statutory costs). For a €60,000 salary, expect total annual cost of around €78,000-81,000 plus our EOR fee.

Yes. Non-EU citizens need a work permit (Rot-Weiß-Rot Card) to work in Austria. We handle the application process, which typically takes 8-12 weeks for skilled workers. Austria has a points-based system that favors tech talent, making it relatively straightforward for qualified candidates.

Many clients start with EOR while they validate the Austrian market, then transition to their own entity (GmbH) once they have 5-10 employees. We help with the transition, including employee transfer documentation and ensuring continuity of employment terms. There is no lock-in period with our service.

Austria has the 13th/14th month salary requirement that Germany lacks. Austrian CBAs have broader coverage (98% vs. ~50% in Germany). Austria uses Abfertigung (severance funds) while Germany uses direct severance. Minimum vacation is 25 days in Austria vs. 20 in Germany. Both have similar employment protections, but the details differ significantly.

For EU citizens, 2-3 weeks from signed offer to start date. This includes contract creation, social security registration, and payroll setup. For non-EU citizens, add 8-12 weeks for work permit processing. We can begin employment immediately once permits are approved.

Statutory benefits include: 25 days paid vacation (5 weeks), 13th and 14th month salary payments, continued pay during illness (6-12 weeks depending on tenure), parental leave, and comprehensive social insurance (health, pension, unemployment, accident). Beyond statutory requirements, Austrian tech workers often expect flexible working arrangements and professional development opportunities.

Employees can form a works council (Betriebsrat) once you have 5+ employees at a location. Works councils have consultation rights on dismissals, working hours, and workplace policies. With EOR, Virmondo EOR is the legal employer, so works council formation would be within our organization. This is rarely an issue with small teams.

EOR is ideal for small teams. Unlike setting up your own entity, there is no minimum headcount requirement. You can employ one person or twenty. Our monthly fee remains the same regardless of team size, making it cost-effective even for a single hire.