Employer of Record in Austria

For companies building teams of 10 or more in finance, accounting, HR/payroll, BD, operations, or IT — not for individual hires.
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Why companies build teams in Austria

Lundi supports compliant employment in Austria for specialist senior hires — particularly DACH market presence and German-language roles. Vienna concentrates the senior talent. For larger teams seeking the DACH talent pool at lower unit cost, Germany typically offers broader options; for cost-driven operations, Poland or Romania are 40–60% cheaper.

Languages

German

Payroll Frequency

Monthly

Currency

EUR

Capital City

Vienna

Employer Tax Rate

21.23%

Austria offers high-quality German-fluent senior talent in finance, engineering, and B2B — with employer social charges (~21% above gross) and labor protections comparable to Germany. Vienna concentrates virtually all professional employment. Strong fit for specialist senior hires, Austrian or DACH market presence, or German-language B2B roles. For cost-driven scaling Lundi typically recommends Poland or Romania; for broader DACH talent depth at comparable cost, Germany. For companies building teams of 10+ specifically in Austria, not individual hires.

Cost of Employment in Austria

In Austria, professional recruitment agency fees range from 22-27% of the first-year annual base salary of a recruited employee. Recruitment agencies also require an upfront retainer and payment in advance installments of the agency fee based on milestones such as start of recruitment, presentation of candidates, and scheduling interviews with a candidate shortlist.

We know this might sound overwhelming—but it doesn’t have to be. A solution like Lundi eliminates the barriers for you. With Lundi, you can recruit talent across 70+ countries, easily managing recruitment—all in one, easy-to-use platform. Get an overview of what you need to know when hiring in Austria below.

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Employer Tax Costs in Austria

An employer can expect to contribute 21.23% on top of an employee’s salary in social contributions. This includes sickness, unemployment, pension, accident insurance, and miscellaneous coverage.

Employee Income Taxes in Austria

Employees in Austria are taxed federally from 0% to 55% depending on their income bracket. Social security contributions total 18.12%.

Employee Probation in Austria

The probationary period is one month. Extending the probation period is not possible in Austria.

Employee Overtime in Austria

Employees in Austria typically work eight hours daily and 40 hours per week. In Austria, there should always be a special reason for overtime, as continuous overtime is not permitted in Austria.By law, there is a maximum working time of 10 hours per day, 50 hours per week (and under exceptional circumstances, up to 12 hours per day and 60 per week). This includes overtime with a limit of 60 hours overtime per calendar year. Overtime must be compensated with a 50% surcharge or extra time off, and overtime worked at night or on the weekend will have a 100% surcharge.Employees are free to refuse overtime without stating any reason if the hours exceed these limits. Employees cannot opt-out of the maximum working hours regulations.

Employee Notice in Austria

The notice period in Austria varies based on the length of employment. It goes as follows:

  • Up to two years of employment: Six weeks’ notice
  • Two to five years of employment: Two months’ notice
  • Five to 15 years of employment: Three months’ notice
  • 15-25 years of employment: Four months’ notice
  • 25+ years of employment: Five months’ notice

When employment ends by mutual consent, no notice period is required, however, termination in writing is recommended.

For resignations, the notice period is one month. However, if there is good cause for resignation, based on the employer’s breach of the contract, the notice period doesn’t have to be observed.

Termination in Austria

All employees in Austria hired after January 1, 2003 are entitled to a severance payment. This payment comes from a severance payment fund to which employers contribute 1.53% of employees’ gross salary every month (starting from the second month of the employee's service).‍When the employment relationship is terminated, employees are entitled to severance pay except in cases of resignation or termination due to misconduct.

How Lundi works in Austria

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building international teams of 10 or more — typically in finance, accounting, HR/payroll, BD/sales, operations, or IT. Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.