Why hire in Austria through an EOR
Two rates, two caps, and 14 payments a year — genuinely worth getting right
Austrian employer social security runs at 20.98% on the 12 regular monthly payments — but the two mandatory "special payments" (holiday and Christmas bonuses) use a different, lower rate and an entirely separate, lower annual cap. On top of that, employers alone fund a small, portable severance contribution from an employee's very first month. Genuinely current for 2026: several contribution rates actually fell rather than rose.
No entity required
Employ staff in Austria without registering a company or running your own ASVG and BV fund filings.
Special payments calculated correctly
The lower rate and separate cap on holiday/Christmas bonuses is easy to miscalculate — we get this right every time.
Abfertigung Neu built in from day one
The portable severance contribution starts in month one, not after a qualifying period — we factor it in from the start.
Independent advice
If direct registration works out better for your headcount, we'll say so — same as everywhere else we operate.
Deal directly, if you'd rather
A real, established market for us
Austria is one of the countries in our long-standing partner network. If you'd rather discuss your specific situation before committing, get in touch and we'll walk you through exactly what an Austrian hire involves under the current 2026 rates.
Ask about an Austria hire →Employer costs at a glance
Austria's headline numbers
Employer costs explained
Why Austria's payslip genuinely runs two systems at once
ASVG — 20.98% on regular pay, capped at €6,930/month
The core employer social security bundle (ASVG) — covering pension, health, unemployment, and accident insurance — runs at 20.98% of gross salary, capped at a monthly contribution ceiling of €6,930 for 2026. Two of the four components genuinely fell for 2026: unemployment insurance dropped to 2.95% (from 3%) and accident insurance to 1.1% (from 1.2%) — a real decrease, unusual compared with most countries we cover, where rates typically hold steady or rise.
The special payments — a different rate, a different cap
Austrian employees receive 14 salary payments a year: 12 regular monthly payments plus two "special payments" — a holiday bonus and a Christmas bonus — each roughly equal to a month's salary. These special payments carry a lower, favourably-treated combined contribution rate (20.48% employer, versus 20.98% on regular pay), calculated against an entirely separate annual ceiling of €13,860 rather than the monthly €6,930 cap. Applying the regular-pay rate and cap to these bonus payments is a genuine, common miscalculation.
Abfertigung Neu — a portable pot, funded by the employer alone
Separately from ASVG, employers contribute 1.53% of all pay (including the special payments) into the employee's Betriebliche Vorsorgekasse (BV fund) — a modern, defined-contribution severance scheme. This starts from the employee's very first month, with no qualifying period, and the fund is fully portable: it travels with the employee to their next employer rather than resetting. There's no employee contribution to this specific fund at all.
Employment basics
What's standard for an Austrian employment contract
ASVG (employer, regular pay)
20.98%, capped at €6,930/month
Unemployment and accident insurance components both fell for 2026.
ASVG (employer, special payments)
20.48%, capped at €13,860/year
A separate, lower rate and cap for the holiday and Christmas bonuses.
Abfertigung Neu (BV fund)
1.53%, employer-only, from month one
Portable — follows the employee to their next job.
Income tax
0% to 55%, seven bands
Top rate is temporary, running through 2029.
Before you budget an Austrian hire
Get our free spreadsheet of employer social charges across 150 countries and see how Austria compares.
Common questions
Hiring in Austria, answered
Why does Austria have two different contribution rates?
Regular monthly pay and the two mandatory special payments (holiday and Christmas bonuses) are treated differently under ASVG — the special payments get a lower combined rate and their own separate annual cap, rather than sharing the monthly ceiling that applies to regular pay.
Is the severance contribution really payable from day one?
Yes — the Abfertigung Neu (BV fund) contribution of 1.53% starts from the employee's first month of employment, with no qualifying period, and the fund is fully portable if they later move to a different employer.
Do I need an Austrian entity to hire someone there?
No — through an Employer of Record arrangement, we become the legal employer, handling ASVG at both rates and the BV fund correctly, while you keep full control of the person's day-to-day work.
Ready to talk about an Austrian hire?
Tell us the role and we'll give you the real, current cost — regular pay and special payments both accounted for — and the fastest compliant route.
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