Compensation and benefits can make a difference in the number of candidates you attract to your open positions. Providing statutory as well as fringe benefits as a part of your Austria benefits management plan will attract top talent to your ranks and encourage them to stay with your company long-term. Plus, meeting or exceeding Austria’s compensation laws will keep your teams happy and your company compliant.
Austria compensation laws
Austria does not have a national or regional minimum wage because of the presence of Collective Bargaining Agreements (CBAs). A CBA should stipulate a minimum wage for your respective industry. If there is no CBA, the employment contract should outline the appropriate remuneration.
Employees in Austria typically work 8 hours a day and 38 or 40 hours a week. Any additional hours should get compensated at 50% the employee’s normal rate, and 100% for night and weekend shifts. Keep in mind that a CBA could outline different overtime rates than Austria’s compensation laws.
Guaranteed benefits in Austria
All employees must receive guaranteed benefits required by Austria’s laws. You can start your Austria benefits management plan by providing time off for the country’s public holidays. Employees who have worked for 6 continuous months are also eligible to 5 weeks (25 days) of vacation each year. After the employee works for 26 years, their time off will increase to 6 weeks (30 working days) of paid vacation.
Austria also requires employers to provide pregnant employees a protection period of 16 weeks of leave split evenly before and after the child’s birth. Employees should make the same amount during this leave as they do during normal working hours. Mothers and fathers also get a minimum of 2 months of parental leave — during which wages are suspended — until their child reaches the age of 2.
Austria benefits management
Building your Austria benefits management plan means providing supplemental benefits that employees may expect. A market-norm benefit is a 13th- or 14th-month bonus equal to 1 month’s salary typically paid at Christmas and again in the summer before the employee uses their vacation time.
Restrictions for benefits and compensation
The biggest restriction for compensation and benefits is the incorporation process. You have to set up a subsidiary before you can hire employees and add them to your payroll.
G-P offers an alternative. We can help you start working faster without the worry of establishing a subsidiary. Our Employer of Record (EOR) model enables companies to hire quickly and compliantly in minutes, not months, without setting up new entities.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading global employment platform is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.