Austria Logo

20 Best Employer of Record (EOR) in Austria 2026

Planning to hire talent in Austria without setting up an office there? An EOR acts as the local employer and keeps everything compliant from day one.
Dhiraj
Written By: Dhiraj Das

Co-founder

Manjuri-Dutta
Edited By: Manjuri Dutta

Co-founder & Editor

Country Capital:

Vienna

Language:

German

Price Range:

$600–$900

Onboarding Time:

1–3 Weeks

Official Currency:

Euro (EUR)

Working Hours:

40 Hours

Public Holidays:

13 Days

Paid Annual Leaves:

25 Days

Country pages on EmployerRecords are built to support hiring decisions through independent provider evaluation and cost context. EmployerRecords is not an EOR provider.

Why use an EOR in Austria

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Hiring in Austria

Austria attracts companies for good reasons: a highly skilled workforce, strong worker protections, and a business culture that values structure and clarity. At the same time, hiring here isn’t something you want to approach casually. Employment terms are detailed, collective agreements influence pay and benefits, and terminations follow clear legal processes.

That’s where an Employer of Record comes in. An EOR hires employees on your behalf through a local entity, manages payroll, taxes, and statutory benefits, and keeps everything aligned with Austrian labor law while you focus on the actual work.

In this guide, we'll break down how hiring in Austria works, what usually trips companies up, and how EORs fit into the picture. We’ve also looked at real user feedback and community reviews so you get a grounded sense of how these platforms perform day to day.

Best Employer of Record Providers for Austria Hiring

The following providers are evaluated by companies hiring employees in Austria, based on compliance coverage, payroll capability, and operational fit.
hellopebl_logo

Pebl

Avg 4.6 (507 Ratings Analyzed)
About Pebl
Company: Velocity Global, LLC
Employees: 501-1000
Established: 2014
HQ: Denver, Colorado, United States
Support Offered By Pebl
Email Support
Live Chat
Tutorial Videos & Documentation
Phone
Social Media

Pebl’s Employer of Record (EOR) solution helps companies hire full-time employees in over 185 countries without setting up local entities. It handles everything from onboarding and compliant contracts to payroll, taxes, and benefits, all through a simple online platform. With local compliance built in, support for offboarding, and clear cost structures, it makes global hiring smooth and legally safe. Companies can expand internationally while Pebl takes care of the legal and administrative details.

Why we picked Pebl

Pebl works well for companies that want a more hands-on feel. Austria’s employment culture values clarity and fairness, and Pebl’s approach feels aligned with that. It’s often chosen by teams that want responsiveness over automation-heavy workflows.

Pros
Entity-Free Hiring
Hire full-time international employees without setting up a local business entity.
Local Compliance Support
Country-specific labor laws and statutory filings are handled centrally.
Multi-Country Payroll
Run payroll across multiple regions through one provider.
Localized Contracts
Use region-ready employment agreements to reduce legal risk.
Statutory Benefits Setup
Mandatory country benefits are provisioned automatically.
Cons
Higher Service Costs
Pricing is often higher than newer EOR providers.
Slower Onboarding
Implementation speed varies by hiring jurisdiction.
Contract Change Delays
Amendment requests may take time to process.
Limited HR Workflows
Platform lacks built-in performance management tools.
Check Pebl current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
EOR
$599
Per month/employee
Deel Logo

Deel

Avg 4.8 (16,900 Ratings Analyzed)
About Deel
Company: Deel, Inc.
Employees: 1001-5000
Established: 2019
HQ: San Francisco, California, United States
Support Offered By Deel
Email Support
Tutorial Videos & Documentation
Social Media

Deel is a global HR platform that lets companies hire full-time employees and contractors in over 150 countries through its Employer of Record service. It manages everything from compliant contracts and onboarding to international payroll, taxes, and benefits. With built-in tools for time-off tracking, expense management, and multi-currency payments, Deel simplifies global workforce management. The platform also offers visa support and integrates with top HR systems, making it easy to scale teams while staying compliant and efficient.

Why we picked Deel

Deel earns its place because it handles Austria’s structured employment setup without turning it into a legal maze. Collective agreements, payroll add-ons, and statutory benefits are handled cleanly, which matters in a country where details aren’t optional.

It’s especially useful if you want consistency across multiple EU hires but still need Austria done properly.

Pros
Entity-Free Hiring
Hire full-time global employees legally without opening a local subsidiary in each hiring market
Contractor Payment Automation
Automates invoices and payouts for international contractors with built-in tax documentation management
Localized Contract Generation
Generates compliant employment agreements aligned with country-specific labor law frameworks
Multi-Currency Payroll Engine
Supports payroll processing across currencies while managing statutory deductions automatically
Rapid Market Entry
Enables companies to onboard employees quickly in established hiring destinations worldwide
Conversion Workflows
Allows smooth transition from contractor status to full-time employment within the same platform
Cons
High Per-Employee Cost
Pricing can escalate quickly when scaling distributed teams across multiple countries
Support Queue Delays
Payroll period support response times may lag during high-volume processing windows
Uneven Benefits Access
Employee benefit availability differs significantly between hiring jurisdictions
Partner Network Limits
Onboarding timelines may extend in less frequently supported hiring regions
Check Deel current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$49
per contractor/month
Payroll
$29
per employee/month
EOR
$599
per employee/month
Rippling-Logo

Rippling

Avg 4.8 (13,600 Ratings Analyzed)
About Rippling
Company: Rippling People Center, Inc.
Employees: 1001-5000
Established: 2016
HQ: California, United States
Support Offered By Rippling
Email Support
Live Chat
Tutorial Videos & Documentation

Rippling’s Employer of Record (EOR) lets you hire full-time employees across the globe without setting up local entities. It handles everything, from compliant contracts and automated payroll in local currencies to tax filings and benefits management. You can onboard employees in minutes, manage IT access, and keep all HR data in one place.

Why we picked Rippling

Rippling is a good pick if you want HR, payroll, and IT access tied together. While Austria doesn’t require complex setups, having everything connected helps when managing benefits, time off, and compliance in one place. It’s useful for teams that like systems talking to each other.

Pros
Unified HR + IT Platform
Combines HR, payroll, benefits, and device management in a single system, reducing operational tool sprawl.
Powerful Workflow Automation
Custom workflows automate onboarding, app provisioning, payroll approvals, and employee lifecycle tasks.
Deep SaaS Integrations
Connects with hundreds of workplace apps and automatically manages access when employees join or leave.
Automated Payroll Engine
Payroll calculations, tax filings, and deductions are largely automated once configuration is complete.
Flexible Modular Architecture
Companies can add HR, IT, finance, or device management modules as operational needs grow.
Cons
Pricing Scales Quickly
Costs increase as additional modules and features are enabled across HR, IT, and payroll.
Complex Initial Setup
Configuring workflows, policies, and automation rules requires time and technical familiarity.
Feature Depth Overload
Smaller organizations may find the platform more complex than necessary for basic HR operations.
Check Rippling current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Payroll
$8
Per Employee/Month
Contractor
$25
Per Contractor/Month
EOR
$500
Per Employee/Month
Remote Logo

Remote EOR

Avg 4.5 (5,799 Ratings Analyzed)
About Remote EOR
Company: Remote Technology, Inc.
Employees: 1001-5000
Established: 2019
HQ: San Francisco, California, United States
Support Offered By Remote EOR
Email Support
Live Chat
Tutorial Videos & Documentation
Social Media

Remote is a global HR platform that lets companies hire, pay, and manage employees in other countries without setting up local entities. With built-in features like Employer of Record services, global payroll, local benefits, and contractor management, it simplifies international hiring. It ensures full compliance with local tax and labor laws, while offering a self-serve dashboard, time-off tracking, and equity management. Remote helps businesses grow teams anywhere in the world—legally, easily, and with full peace of mind.

Why we picked Remote

Remote stands out for how steady it is once employees are onboarded. Austria has predictable rules, but they’re strict, especially around leave and notice periods.

Remote’s strength is keeping everything consistent month after month, which reduces surprises later.

Pros
Unified Global Payroll
Consolidates payroll, taxes, and contractor payments across countries within one structured system.
Strong Compliance Infrastructure
In-house entities and legal expertise reduce misclassification and local labor law exposure.
Structured Onboarding Workflow
Guided hiring flows simplify contract generation, document collection, and employee activation.
Transparent Cost Breakdown
Clear pricing visibility helps finance teams understand EOR fees and statutory components.
Centralized HR Documentation
Contracts, payslips, and compliance documents remain organized and easily accessible.
Wide Country Coverage
Supports hiring in numerous jurisdictions without requiring your own local entities.
Cons
Variable Support Response
Response times can fluctuate, particularly during payroll cycles or urgent compliance matters.
Expense Reimbursement Delays
Some users report slower processing times for reimbursements and off-cycle payments.
Premium Pricing Structure
Costs run higher than basic payroll providers, especially for smaller headcounts.
Limited Custom Workflows
Platform flexibility is narrower for companies needing complex approval structures.
Check Remote EOR current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Employer of Record
$699
Per employee/month
Payroll
$29
per employee/month
Contractor Management
$29
per contractor/month
Contractor Management Plus
$99
per contractor/month
Contractor of Record
From $325
per contractor/month
Oysterhr Logo

Oyster HR

Avg 4.5 (1,200 Ratings Analyzed)
About Oyster HR
Company: Oyster HR Inc.
Employees: 501-1000
Established: 2020
HQ: Charlotte, North Carolina, United States
Support Offered By Oyster HR
Email Support
Live Chat
Tutorial Videos & Documentation
Social Media

Oyster is a global Employer of Record platform that helps companies hire full-time talent across 180+ countries without setting up local entities. It manages everything from compliant contracts and localized onboarding to automated payroll and benefits in local currencies. With built-in legal insights, a cost calculator, and dedicated support, Oyster makes international hiring simple and fast. It also protects intellectual property and ensures compliance with local labor laws, letting businesses scale globally without legal complexity.

Why we picked Oyster HR

Oyster HR fits companies that care about employee experience alongside compliance. Austria has strong worker protections, and Oyster reflects that in how it handles benefits, leave, and documentation. It’s a good match for teams building long-term roles rather than short-term hires.

Pros
Entity-Free Hiring
Hire full-time international employees legally without setting up a local business entity in each country.
Automated Contracts
Generate localized employment agreements that reflect country-specific labor laws and statutory requirements automatically.
Multi-Country Payroll
Manage payroll for distributed teams across multiple countries from a single centralized system dashboard.
Built-In Compliance Tools
Access country-specific compliance documentation and employment policy guidance in one platform interface.
HRIS Integrations
Sync employee records with external HR and finance systems to avoid duplicate data entry across tools.
Cons
Benefits Cost Variation
Health insurance and statutory benefits pricing varies widely depending on employee location and provider availability.
Support Queue Delays
Customer support response times can increase during peak onboarding periods or regulatory escalations.
Pricing Tier Jumps
Monthly costs tend to rise significantly as hiring volume increases across new international markets.
Limited Customization
Employment contract templates allow only minor adjustments beyond predefined country-level legal frameworks.
Check Oyster HR current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$29
per contractor/month
Payroll
$25
per employee/month
EOR
$599
per employee/month
Multiplier Logo

Multiplier

Avg 4.7 (3,059 Ratings Analyzed)
About Multiplier
Company: Multiplier Technologies Pte. Ltd.
Employees: 501-1000
Established: 2020
HQ: New York, New York, United States
Support Offered By Multiplier
Email Support
Live Chat
Tutorial Videos & Documentation
Phone
Social Media

Multiplier is a global employment platform that helps businesses hire full-time employees across 150+ countries without setting up local entities. It takes care of locally compliant contracts, automated payroll in multiple currencies, benefits, taxes, and onboarding—all in one dashboard. With built-in tools for managing expenses, equity, and freelancer payments, it simplifies international hiring and keeps everything compliant. Designed for fast-growing teams, Multiplier makes it easy to expand globally while staying focused on what really matters: building great teams.

Why we picked Multiplier

Multiplier works well if speed matters but compliance can’t slip. In Austria, onboarding can slow down if paperwork isn’t precise, and this platform keeps things moving without cutting corners. It’s practical for companies hiring one or two people and wanting things done right the first time.

Pros
Localized Contracts
Generates country-specific employment agreements aligned with statutory labor laws across supported hiring regions.
Contractor Conversion
Enables seamless transition from contractor status to full-time employment without requiring legal entity setup.
APAC Market Depth
Strong employment coverage across Southeast Asia and Middle East markets often underserved by legacy providers.
Central Payroll Runs
Consolidates global salary processing, tax deductions, and compliance reporting within a single payroll dashboard.
Compliance Workflows
Automates statutory filings and employment documentation to reduce manual oversight from internal HR teams.
Cons
Pricing Inflexibility
Per-employee pricing tiers increase quickly as distributed teams scale beyond early growth stages.
Support Delays
Payroll change requests sometimes face slower resolution during month-end processing windows.
Benefits Setup Time
Country-specific insurance and leave benefits enrollment may take longer than onboarding timelines.
Integration Limits
Native integrations with enterprise HRIS and finance systems remain fairly limited in scope.
Check Multiplier current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$40
per contractor/month
Payroll
Contact for pricing
EOR
$400
per employee/month
Remofirst Logo

Remofirst

Avg 4.6 (200 Reviews Analyzed)
About Remofirst
Company: Remofirst, Inc.
Employees: 11-50
Established: 2021
HQ: California, United States
Support Offered By Remofirst
Email Support
Live Chat
Tutorial Videos & Documentation
Phone
Account Manager

Remofirst is a global Employer of Record (EOR) platform that helps businesses hire full-time employees in over 180 countries without setting up local entities. It takes care of everything from onboarding, payroll, taxes, and compliance to providing country-specific benefits. Through a simple platform, you can manage contracts, payments, and employee records all in one place.

Why we picked Remofirst

Remofirst is often picked when budget matters but compliance still can’t be compromised. Austria isn’t the cheapest country to hire in, so cost predictability helps. This platform keeps pricing straightforward while covering the essentials properly.

Pros
Competitive EOR Pricing
Lower monthly fees make it viable for startups hiring internationally without inflating operational costs.
Fast Employee Onboarding
Most new hires can be onboarded quickly once documentation is submitted and approved internally.
Broad Country Coverage
Supports hiring across multiple emerging markets often underserved by higher-priced EOR vendors.
Contract Setup Simplicity
Employment agreements are generated quickly with localized clauses handled through standardized workflows.
Straightforward Payroll Runs
Payroll processing remains predictable for standard full-time employee hiring across supported countries.
Cons
Support Ticket Delays
Users report slower turnaround times when resolving payroll corrections or compliance-related questions.
Benefits Package Gaps
Some regional benefit plans lack depth for senior hires expecting competitive local compensation.
Limited Reporting Tools
Platform reporting options remain basic for finance teams managing multi-country payroll costs.
Integration Constraints
Native integrations with HRIS or accounting systems are fewer compared to premium EOR platforms.
Check Remofirst current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractors
Custom Price
Contractors
Premium Contractors
$25
Per Person/Month
EOR
$199
Per Person/Month
Papaya Global Logo

Papaya Global

Avg 4.2 (125 Ratings Analyzed)
About Papaya Global
Company: Papaya Global Ltd.
Employees: 501-1000
Established: 2016
HQ: New York, New York, United States
Support Offered By Papaya Global
Email Support
Tutorial Videos & Documentation
Phone
Social Media

Papaya Global is a global Employer of Record platform that helps companies hire and manage employees in over 160 countries without setting up local entities. It handles employment contracts, payroll in local currencies, tax compliance, and benefits tailored to each region. With a centralized platform, businesses can track workforce data, automate onboarding, and access real-time reports. Papaya also ensures strong data security and keeps hiring fully compliant with local labor laws, making global growth simpler and more efficient.

Why we picked Papaya Global

Papaya Global makes sense for companies that already operate payroll across several countries. Austria fits neatly into its centralized payroll and reporting setup, which helps finance teams track costs tied to social contributions and benefits.

It’s less about simplicity and more about control at scale.

Pros
Global Payroll Coverage
Supports payroll and employment compliance across more than 160 countries with localized regulatory handling.
Compliance Expertise
Strong compliance infrastructure helps HR teams manage tax rules, statutory benefits, and labor regulations globally.
Unified Workforce Platform
Combines EOR, payroll, and contractor management in a single platform instead of fragmented tools.
Automated Payroll Workflows
Payroll calculations, tax deductions, and reporting processes are heavily automated for multi-country payroll operations.
Global Hiring Infrastructure
Makes it possible to hire international employees without establishing local legal entities.
Detailed Payroll Reporting
Finance teams benefit from consolidated payroll reporting across countries and currencies.
Contractor Payment Tools
Built-in contractor payment system simplifies paying international freelancers in multiple currencies.
Cons
Premium Pricing Structure
Pricing is higher than many EOR competitors, particularly for companies hiring in only a few countries.
Implementation Time
Initial setup and payroll configuration can take longer than expected for complex global payroll environments.
Support Response Delays
Some reviewers report slower response times from support during critical payroll processing periods.
Learning Curve For Admins
Payroll configuration and reporting features require time for HR teams unfamiliar with global payroll systems.
Check Papaya Global current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$30
per contractor/month
Payroll
Contact for pricing
EOR
$599
per employee/month
Hire With Columbus Logo

Hire With Columbus

Avg 4.1 (8 Reviews Analyzed)
About Hire With Columbus
Company: Hire With Columbus
Employees: 1-10
Established: 2001
HQ: Singapore
Support Offered By Hire With Columbus
Email Support
Live Chat
Tutorial Videos & Documentation

Hire With Columbus is an Employer of Record platform that allows businesses to hire and manage global employees without setting up local entities. It handles payroll, contracts, and compliance for companies hiring in different countries. According to the company, the platform offers transparent pricing, localized contracts, and multi-currency payroll support. Designed to simplify international expansion, it helps teams focus on growth while ensuring every hire meets local employment laws.

Why we picked Hire with Columbus

Hire with Columbus is a perfect fit for teams that want local depth rather than a broad, generic platform. Austria has its quirks around contracts and termination, and Columbus tends to explain those clearly instead of hiding them behind software flows.

It’s a good option when you want guidance, not just execution.

Pros
Simplifies global hiring
Handles compliance and local regulations
Centralized dashboard for management
Transparent pricing model
Expert HR and legal support
Cons
Dependent on platform for all employment updates
No verified third-party reviews yet
Not ideal for companies wanting full in-house control
Pricing might be higher for very small startups
Check Hire With Columbus current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Employer of record
$179
per employee/month
International contractors
$25
per contractor/month

Horizons EOR

Avg 4.4 (304 Ratings Analyzed)
About Horizons EOR
Company: New Horizons Global Partners Germany GM
Employees: 11-50
Established: 2001
HQ: Berlin, Berlin, Germany
Support Offered By Horizons EOR
Email Support
Live Chat
Tutorial Videos & Documentation
Social Media

Horizons is a global Employer of Record (EOR) platform that helps businesses hire international employees legally without setting up entities. It manages local payroll, tax compliance, employment contracts, and benefits across more than 100 countries. With fast onboarding, in-country HR support, and a secure platform, Horizons makes global hiring simple and compliant. From handling local laws to offering region-specific perks, it allows companies to grow teams anywhere while staying focused on their core operations.

Why we picked Horizons

Horizons is practical for businesses entering Austria for the first time. It doesn’t overwhelm you with options and focuses on getting contracts, payroll, and statutory benefits correct.

That simplicity helps when you’re still learning how Austrian employment really works.

Pros
Wide Global Coverage
Companies can hire employees across 180+ countries without establishing local legal entities.
Reliable Payroll Processing
Most users report consistent payroll execution with timely salary payments across multiple currencies.
Fast Employee Onboarding
New hires can typically be onboarded quickly with streamlined documentation and contract workflows.
Competitive EOR Pricing
Monthly pricing is lower than many enterprise EOR providers, making it attractive for smaller teams.
Integrated Hiring Services
Recruitment support, visa guidance, and contractor management are available within the same platform.
Cons
Support Response Variability
Some customers report slow responses from support teams during complex payroll or compliance questions.
Limited Advanced Reporting
Analytics and reporting capabilities remain basic compared with enterprise HR or payroll platforms.
Integration Ecosystem Still Growing
Native integrations with broader HRIS and finance systems are currently limited.
Check Horizons EOR current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Employer of Record
$299
Per month
Contractor of Record
$249
Per month
Talent Sourcing
2%
Gross Salary Per Month

Explore EOR Solutions for Other Countries

If you have plans to hire in any other country, don't forget to explore our best EOR country guides to find the best fit for your business.
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Additional EOR Solutions in Austria
Here are some additional EOR solutions that can be very effective in Austria which you may explore as well.
Agile HRO Logo

Agile HRO

Agile HRO is best for businesses looking to hire and manage global talent quickly and compliantly without setting up local entities.
Rating
Avg 3.9 (30 Reviews Analyzed)
Country Coverage
100+
Starting Price
399
Borderless AI Logo

Borderless AI

Borderless AI is best for hiring full-time global talent quickly and compliantly—without setting up local entities.
Rating
Avg 4.6 (170 Ratings Analyzed)
Country Coverage
170+
Starting Price
$579

EuroDev

EuroDev’s Employer of Record service is best for hiring and managing employees across Europe without setting up a local legal entity.
Rating
Avg 4.3 (85 Ratings Analyzed)
Country Coverage
1
Starting Price
Custom
Global Expansion Logo

Global Expansion

Global Expansion is best for companies that want to hire international employees quickly and compliantly without setting up local entities.
Rating
Avg 4.6 (160 Ratings Analyzed)
Country Coverage
200+
Starting Price
Custom
Asanify Logo

Asanify

Asanify is best for businesses that want to hire and manage international employees legally and efficiently without setting up local entities.
Rating
Country Coverage
80+
Starting Price
$199
Acvian Logo

Acvian

Acvian is best for businesses that want to hire international talent quickly and legally without setting up local entities.
Rating
Avg 4.6 (13 Ratings Analyzed)
Country Coverage
180+
Starting Price
$499
CXC Global Logo

CXC Global

CXC Global’s Employer of Record service is best for companies looking to hire international talent quickly and compliantly without setting up local entities.
Rating
Avg 4.0 (20 Ratings Analyzed)
Country Coverage
100+
Starting Price
Custom
1EOR Logo

1EOR

1EOR is best for quickly and legally hiring international employees without setting up a local entity.
Rating
Country Coverage
80+
Starting Price
$199
Atlas HXM Logo

Atlas HXM

Atlas HXM is best for hiring and managing global employees compliantly through its Employer of Record (EOR) platform.
Rating
Avg 4 (203 Ratings Analyzed)
Country Coverage
160
Starting Price
$595

Estimate the Total Cost of Hiring in Austria

This estimate includes statutory employer obligations in Austria, such as social security contributions and mandatory payroll-related charges, along with a standard EOR service fee. Actual costs may vary by salary, benefits, and provider, and should be used for budgeting and comparison rather than as a final quote.

The estimate reflects typical employment costs in Italy when hiring through an Employer of Record. Final pricing may differ based on compensation structure, benefits, and EOR provider terms.

Table of Contents

Hiring in Austria: Employment Law, Payroll, and EOR Guide

Hiring in Austria isn’t chaotic, but it is precise. Once you hire someone, the framework kicks in immediately. Contracts need to align with collective agreements, payroll includes mandatory social contributions, and terminations follow clearly defined legal paths.

Companies that assume they can “clean things up later” usually discover that Austrian employment law doesn’t work that way. Fixing mistakes often means retroactive payments, contract amendments, or drawn-out discussions with advisors and works councils.

This is usually the moment when teams realize they need local expertise earlier than expected. Learning Austrian labor law by trial and error is slow and expensive. That’s why many international companies choose to hire through an Employer of Record (EOR) when entering the market.

An EOR becomes the legal employer of your Austrian hires. They issue compliant contracts, run payroll, manage statutory benefits, handle tax filings, and keep everything aligned with local labor law. You stay focused on the day-to-day work.

For most companies, it’s the simplest way to hire in Austria without setting up a local entity or navigating employment law on your own.

How Employment Law Works in Practice in Austria

Austria’s employment system is built around structure and predictability. Once someone is hired, informal agreements don’t carry much weight. Everything needs to be written, traceable, and compliant with national law and applicable collective bargaining agreements.

Written employment contracts are standard. These must clearly define salary, working hours, role, notice periods, leave entitlements, and reference the relevant collective agreement, if one applies.

Even when an EOR prepares the contract, it’s important for employers to understand what’s included. Adjusting terms later is possible, but it usually involves formal amendments and careful review.

In Austria, employment compliance isn’t something you correct after the fact. Errors in contracts or payroll tend to surface later, often when costs are higher and flexibility is lower.

Contracts, Employment Types, and Classification Risks

Most employees in Austria are hired on open-ended contracts. Fixed-term contracts are allowed, but they are closely monitored. Repeated renewals without justification can lead to automatic conversion into a permanent role.

Probation is permitted and typically lasts up to one month, depending on the contract and collective agreement. During this period, termination is simpler, but employees are still entitled to statutory protections.

One common mistake foreign companies make is misclassifying workers as contractors. Austrian authorities look at how the work is actually performed: control, integration into the business, economic dependency, and working hours.

If someone behaves like an employee, they are treated as one. An EOR removes this risk by employing workers through a fully compliant local entity.

Minimum Wages and Collective Agreements

Austria does not have a single statutory minimum wage in the traditional sense. Instead, wages are governed by collective bargaining agreements (CBAs), which cover the vast majority of the workforce.

These agreements set minimum salaries by role, industry, and experience level. Hiring a software developer, a finance analyst, or an operations manager can fall under different agreements with different pay floors.

This often surprises companies hiring remotely who assume “Austria is one market.” Legally, the applicable collective agreement matters more than the employee’s job title alone.

A competent EOR identifies the correct agreement, applies the right salary thresholds, and updates payroll when agreements are revised. Getting this wrong is a common compliance issue.

Payroll, Taxes, and Mandatory Social Security

Payroll in Austria goes beyond paying a monthly salary. Employers must register employees with the social security system and make ongoing contributions.

These contributions cover:

  • Health insurance
  • Pension insurance
  • Unemployment insurance
  • Accident insurance

Both employers and employees contribute, with deductions handled through payroll. Missing registrations or underpaying contributions can trigger audits and penalties.

Salaries are usually paid monthly, and formal payslips are expected. Austria is also known for the 13th and 14th salary, commonly referred to as holiday and Christmas pay. These are not bonuses; they are standard practice under most collective agreements.

An EOR manages calculations, filings, and payments, but employers should still understand the true employment cost.

Mandatory Contributions and Allowances Overview

RequirementWho PaysWhat It CoversWhy It Matters
Social Security ContributionsEmployer & EmployeeHealth, pension, unemployment, accident insuranceMandatory for all employees
Income Tax (PAYE)Employee (withholding)Personal income taxMust be calculated and filed correctly
13th & 14th SalaryEmployerHoliday and Christmas payCommonly required under CBAs
Family Burden Equalization LevyEmployerFamily benefits fundingStatutory obligation

13th and 14th Salary Payments

One of the most misunderstood aspects of Austrian employment is the 13th and 14th salary. These payments are standard across most industries and are usually paid mid-year and at the end of the year.

They are not performance bonuses and cannot be skipped without contractual justification. They are also taxed differently, often at a lower rate, which affects payroll planning.

EORs calculate and schedule these payments correctly, but employers should budget for them upfront. Treating them as optional almost always leads to corrections later.

Working Hours, Leave, and Public Holidays

The standard workweek in Austria is 40 hours, though many collective agreements reduce this to 38.5 hours. Overtime is regulated and must be compensated or offset with time off.

Employees are entitled to:

  • At least 25 days of paid annual leave
  • Paid public holidays
  • Statutory sick leave
  • Parental and family-related leave

Leave tracking directly affects payroll and compliance. This is one area where manual processes tend to fail. An EOR manages leave balances and ensures payroll stays accurate during absences.

Probation, Termination, and Notice Periods

Termination in Austria is structured and rarely informal. While there is no “at-will” employment, notice periods vary based on role, tenure, and collective agreement.

Ending employment usually requires:

  • Proper notice or payment in lieu
  • Compliance with statutory timelines
  • In some cases, justification or consultation

Improper termination can lead to disputes, reinstatement claims, or compensation. Many companies rely on negotiated mutual separations to reduce risk.

One of the key advantages of an EOR is having local guidance when exits become unavoidable.

Onboarding Employees Through an EOR

Onboarding through an EOR in Austria is typically smooth. The EOR issues compliant contracts, registers the employee with social security, sets up payroll, and manages benefits.

Delays usually happen only when documents are missing or when roles fall under less common collective agreements. Experienced EORs know how to resolve these early.

EOR vs Setting Up a Local Entity in Austria

FactorUsing an EORSetting Up a Local Entity
Time to hireDays to weeksSeveral months
Upfront costLowHigh
Compliance burdenManaged by EORManaged internally
FlexibilityHighLow
Best suited forSmall teams, testing the marketLong-term, large operations

Many companies start with an EOR and reassess later. Some transition to an entity. Many never need to.

How to Choose the Best EOR in Austria

Not all EORs handle Austria with the same depth. Differences usually appear after hiring, not during sales calls.

When evaluating providers, look for:

  • Experience with Austrian collective agreements
  • Clear handling of 13th and 14th salary
  • Transparent employment contracts
  • Support during terminations
  • Full visibility into statutory costs
  • Local expertise, not just EU-level policies

The right EOR feels less like software and more like a compliance partner who understands how Austria actually works.

Final Thoughts

Austria’s employment system is stable and predictable, but it doesn’t allow shortcuts. Companies that respect the structure tend to hire smoothly. Those that don’t usually learn the rules when it’s already inconvenient.

For most foreign employers, an EOR is the safest way to hire in Austria while staying flexible. With the right partner, you can focus on building your team instead of untangling compliance issues later.

Frequently Asked Questions About EOR in Austria

Know about about the questions you may have before you make a decision to choose your preferred EOR solution for your Austria hiring.
Written contracts are not strictly mandatory under Austrian law, but in practice they are the standard and strongly expected. Employers must provide a written “service note” outlining key employment terms, even if a formal contract is not signed.

In reality, most employment relationships are governed by written contracts aligned with applicable collective bargaining agreements. Operating without clear documentation significantly increases legal and compliance risk.
Austria does not have a single statutory minimum wage set by law. Instead, minimum pay levels are established through collective bargaining agreements (CBAs), which cover most industries and roles.

These agreements effectively set wage floors and are legally binding. Paying below the applicable CBA minimum can trigger penalties, back pay obligations, and labor disputes.
If a works council exists, it has formal consultation and co-determination rights on certain matters, including terminations, restructuring, and major workplace changes.

Not all companies have works councils, but when one exists, employers are required to engage with it. Ignoring works council obligations can delay terminations and expose employers to legal challenges.
In many cases, yes. Collective bargaining agreements apply automatically based on the employer’s industry and the employee’s role, even if the contract does not explicitly reference them.

CBAs can override individual contract terms on pay, working hours, bonuses, notice periods, and termination protections. This is one of the biggest compliance risks for foreign employers unfamiliar with the Austrian system.
Many companies start with an EOR when hiring one or two employees or testing the Austrian market.

Setting up a local entity often makes sense once you are hiring at scale, managing works councils internally, or need direct operational presence in Austria.
Yes. Austria commonly uses 13th and 14th month salary payments, often referred to as holiday and Christmas bonuses. These are not discretionary perks; in many industries, they are mandatory under collective agreements.

Failing to account for these payments is a common budgeting mistake for foreign employers.

Standard working hours are typically 40 hours per week, though collective agreements may vary.

Employees are entitled to:

  • Paid annual leave (usually at least five weeks)
  • Paid public holidays
  • Paid sick leave under statutory rules

Leave tracking must be accurate, as balances are closely reviewed during employment termination.

Contracting is allowed, but misclassification is a serious risk. Authorities assess the actual working relationship, not job titles.

If a contractor is economically dependent, works under employer control, or is integrated into the organization, they may be reclassified as an employee, triggering backdated taxes and social contributions.

Our Ranking Methodology

To keep these listings accurate and useful, every Employer of Record featured on this page goes through a manual review process before being included. We don’t rely on vendor submissions or surface-level feature comparisons.

Our evaluations focus on how EOR providers actually operate in practice. This includes entity coverage, local compliance handling, payroll accuracy, contract structure, onboarding timelines, pricing transparency, and verified customer feedback.

Providers are ranked based on overall performance across these areas, with greater weight given to consistent local execution and operational reliability rather than marketing claims or software features alone.

Check Our Detailed Ranking Methodology

Manjuri-Dutta
Article By: Manjuri Dutta

Manjuri Dutta is the co-founder and Content Editor at Employer Records, a platform specialized in discovering best Employer-of-Record services for global hiring. She brings a thoughtful and expert voice to articles designed to inform HR leaders, practitioners, and tech buyers alike.

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