Global Deployments is an Employer of Record (EOR) provider that lets international companies hire staff in Austria legally, without opening a local entity. As an EOR Austria partner, Global Deployments becomes the legal employer of record, handling employment contracts under collective agreements (Kollektivvertrag), ÖGK social insurance registration, and PAYE income tax withholding, so a foreign business can build a compliant team in this high-wage, highly regulated Central European market.
Quick facts: Employer of Record Austria at a glance
- Employer social contributions: approximately 26 to 29% of gross salary (pension, health, unemployment, accident, family, MVK, and other levies)
- Employee social contributions: approximately 18% of gross salary
- PAYE: progressive from 0% to 55% on employment income
- Minimum wage: no statutory national minimum; Kollektivvertrag (KV) sector agreements set floors, with most sectors now at or above EUR 2,000 per month
- Annual leave: minimum 5 weeks (25 working days) per year
- MVK (severance fund): 1.53% employer contribution to the employee’s individual severance account from day one
What Is an Employer of Record in Austria?
An Employer of Record in Austria is a licensed local entity that legally employs staff on behalf of a foreign company, while that company retains full control over the employee’s day-to-day work. Global Deployments’EOR Austria service covers compliant contract drafting under the applicable Kollektivvertrag, ÖGK and BVAEB registration, income tax withholding, MVK severance fund contributions, and work permit support for non-EU hires.
Beyond EOR, Global Deployments also supports companies that want a PEO Austria co-employment arrangement, plus standalone payroll Austria outsourcing for businesses that already hold a local entity but want compliant EUR payroll and ÖGK reporting handled externally.
Austria Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Governing law | Angestelltengesetz (white-collar), ABGB, and sector Kollektivvertrag |
| Minimum wage | No statutory floor; set by Kollektivvertrag per sector (most sectors EUR 2,000+/month) |
| Social insurance body | ÖGK (Austrian Health Insurance Fund), PVA (pension), AUVA (accident) |
| Tax authority | Finanzamt (Austrian Tax Authority) |
| Annual leave | Minimum 5 weeks (25 working days) |
| Severance fund | MVK at 1.53% of gross salary from day one of employment |
Payroll, Tax and Social Insurance Compliance in Austria
Austrian payroll carries one of the highest total employer cost burdens in the EU. Employer social contributions typically total between 26% and 29% of gross salary and include: pension insurance (PVA) 12.55%, health insurance (ÖGK) 3.78%, accident insurance (AUVA) 1.2%, unemployment insurance 3%, housing construction levy 0.5%, insolvency protection fund 0.1%, family burden equalisation fund (FLAF) 3.9%, and MVK severance fund 1.53%. Employees contribute approximately 18% (pension 10.25%, health 3.87%, unemployment 3%, housing 1%). Income tax rates progress from 0% on income up to EUR 12,816 per year to 55% on income above EUR 1 million.
The Federal Ministry of Labour and Economy (BMAW) publishes the applicable Kollektivvertrag registers and sector-specific minimum wage tables. Because every Austrian employment contract must comply with the applicable KV and KV minimum wages are renegotiated annually, contracts that do not reference the correct KV or that fail to apply the most recent minimum wage increase are non-compliant from the date of the increase. This is the compliance gap Global Deployments’ EOR and payroll Austria services are built to close.
Why Companies Choose Global Deployments for EOR Services in Austria
Global Deployments operates as an Employer of Record across 160+ countries through its vetted in-country partner network, giving companies a single partner for DACH-region and global expansion. For Austria specifically, Global Deployments handles:
- ÖGK, PVA, and AUVA registration and monthly social insurance management
- PAYE withholding via Finanzamt and L16 annual reconciliation
- Kollektivvertrag identification and sector minimum wage compliance
- MVK severance fund contributions from the first day of employment
Frequently Asked Questions
What does an Employer of Record in Austria actually do?
An EOR like Global Deployments becomes the legal employer of your Austria-based staff, managing contracts, social insurance registration, PAYE withholding, MVK contributions, and Kollektivvertrag compliance, while you direct the employee’s daily work.
How much do employers contribute to social insurance in Austria?
Employer social contributions total approximately 26% to 29% of gross salary, covering pension, health, accident, unemployment, housing, and the MVK severance fund, plus the FLAF family levy. The exact rate depends on the employee’s insurance category and sector.
Does Austria have a statutory minimum wage?
No. Austria has no legislated national minimum wage. Sector minimum wages are set by Kollektivvertrag (collective agreement) bargaining and renegotiated annually. Most sectors now set KV minimum wages at or above EUR 2,000 per month.
Does Global Deployments offer payroll-only services in Austria?
Yes. Alongside full EOR, Global Deployments provides standalone payroll Austria outsourcing for companies that already have a local entity but want ÖGK social insurance and Kollektivvertrag compliance managed externally.
About Global Deployments
Registered Company Name: Global Deployments | Part of Africa Deployments Ltd.
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Phone: +230 5713 8629
Website: global-deployments.com
Austria’s Kollektivvertrag system, high employer social contributions of 26% to 29%, and MVK severance fund obligations from day one create a compliance-intensive employment environment. An EOR Austria arrangement through Global Deployments provides the ÖGK registration, KV-compliant contracts, and Finanzamt payroll infrastructure needed to hire compliantly without entity establishment.
Reviewed by: Global Deployments Compliance Team
