Expand with an Employer of Record in Austria

Country Guide

Employer of Record in Austria (EOR in Austria)

Last updated: May 16, 2025

Capital City

Vienna

Languages

German (official)

Currency

Euro (EUR, €)

Population Size

Approximately 9 million (as of 2025)

Employer Taxes

21%–22%

Employee Costs

21%–22%

Payroll Frequency

Monthly

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We are your Employer of Record in Austria, we can serve as your local partner, ensuring a smooth market entry and ongoing compliance with all necessary regulations. Austria, with its stable economy and strategic location in Central Europe, offers significant opportunities for international businesses. However, Austria’s regulatory landscape, including labor laws and tax regulations, can be complex. 

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Choosing Between an Employer of Record and Company Incorporation in Austria

While setting up a subsidiary in Austria is often considered the default option for local expansion, opting for an Employer of Record offers several comparative advantages, including:

  • Speed – The business setup process in Austria is expedited with an Employer of Record like INS Global, enabling you to start operations and hire staff much faster. Company incorporation can take several months of planning and documentation, whereas an Employer of Record can make your team operational within weeks or even days.
  • Compliance – Employer of Records and subsidiaries must always comply with Austrian tax laws and labor regulations when employing local staff. However, Employer of Records already have the specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.
  • Cost – For small teams or temporary needs, Employer of Record services are often more cost-effective than establishing a subsidiary, as you avoid upfront incorporation expenses and ongoing administrative costs. For larger companies, Employer of Records provide specialized streamlining options that help you efficiently integrate new markets into multi-country payroll systems.
  • Control – While incorporation offers full control over HRfinances, and operations, Employer of Records can provide the same level of organizational control over your workforce while reducing your administrative responsibilities and liability.

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
employer of record

The Benefits of Austrian Employer of Record Services for Your Business

icon EOR

Efficient Setup

Helps you avoid the complexities of navigating tax systems and labor laws in Austria. Employer of Record services then simplify the setup process, ensuring compliance from the start.

icon EOR

Consistent Compliance Management

Austria’s regulations can be intricate, but Employer of Records have the expertise and experience needed to keep your business compliant with local tax lawslabor regulations, and social security contributions.

icon EOR

Minimized Risk and Liability

Acting as your legal employer in Austria, an EOR reduces the risks associated with employment regulations and ensures compliance.

icon EOR

Cost Planning and Management

Employer of Record services can be much more economical than establishing a local subsidiary, particularly for smaller teams or temporary needs, by helping you avoid initial incorporation costs and ongoing administrative burdens like the overheads required to hire in-house HR staff.

icon EOR

The Ability to Focus on Core Business Objectives

Delegating HR tasks like recruitmentpayroll processing, and tax management to your Employer of Record allows you to focus on core business activities

How an Employer of Record in Austria Operates in Just 3 Steps

1

Comprehensive Planning & Needs Assessment

Your journey with an Employer of Record in Austria like INS Global, begins with a detailed consultation to understand your business objectives and needs. This includes discussing the number of employees, their roles, and your timeline for your expansion into Austria, ensuring that the Employer of Record can tailor their services to align with your goals.

2

Streamlined Setup, Recruitment & Onboarding

Whether you are establishing a new team in Austria or transferring existing employees, an Employer of Record handles all legal processes by legally hiring staff locally on your behalf. This includes managing visas and work permits, organizing payrollcontract management, and ensuring total compliance with Austrian labor regulations. By acting as your legal employer in Austria from the start, the Employer of Record removes the need for you to set up a local entity, saving you valuable time and resources.

3

Ongoing Management & Compliance Assurance

Once your employees are in Austria and operating as usual, an Employer of Record oversees ongoing HR and payroll functions. This includes processing salaries, managing employee benefits, and ensuring health insurance and social security contributions compliance. Employer of Records then serve as the HR interface between you and your Austrian team, managing administrative tasks and addressing employee concerns, allowing you to focus on business growth with confidence.

5 Essential Factors for Selecting the Best Employer of Record in Austria

Choosing the right Employer of Record in Austria is critical for successful market entry. So you can be prepared, consider these 5 key factors:

  • Experience and Track Record – Seek an Employer of Record in Austria with proven experience and a strong industry reputation like INS Global. Look for as many client testimonials and industry accolades as possible as potential indicators of reliability.
  • Comprehensive Service Offerings – Ensure the Employer of Record in Austria provides all necessary services or can customize their offerings to suit your needs. This may include visa and work permit supportpayroll processingtax compliance, and navigating Austria’s tax and labor regulations.
  • Scalability – Opt for an Employer of Record in Austria that can scale its services as your business grows. Their staff should be capable of managing an increasing workforce and evolving business requirements as your needs change.
  • Clear Communication and Transparency – Choose an Employer of Record in Austria known for providing clear and consistent communication. They should keep you informed about regulatory updatesimpending deadlines, and potential issues. Look for a dedicated point of contact and online tools for easy access to essential information.
  • Transparent Cost Structure – Compare the pricing models of different Employer of Record providers in Austria. Ensure their fees are transparent and competitive with no hidden costs. Third-party advice can help you get the best value for your Employer of Record in Austria.

INS GUIDES

Check Our Labor Law Guides

Learn how the Austria Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
Guide icon

Austria: Labor Law Overview

Employment Contracts

Contracts must be in German or English and outline employment terms, including salarybenefitsworking hourstermination clauses, and minimum wage requirements. An Employer of Record in Austria ensures your contracts comply with Austrian labor law and protect your interests.

Probationary Periods

Probation periods in Austria typically last up to 6 months. An Employer of Record in Austria can help set up probation periods that comply with local laws while allowing you to assess new employees.

Working Hours

Standard work hours in Austria are usually 40 hours per week with limits on overtime. Employer of Record services assist in tracking work hours and ensuring compliance with overtime regulations to prevent penalties.

Paid Leave

Employees in Austria are entitled to various types of paid leave, including public holidaysannual leavesick leave, and maternity leave. An Employer of Record manages leave requests and ensures proper compensation according to Austrian labor laws.

Health Insurance and Social Security

Both employers and employees contribute to health insurance and social security schemes. Your Employer of Record handles these contributions as part of the payroll process.

Severance Pay

Severance pay is legally required in certain situations, such as termination without cause. An Employer of Record guides you through severance pay practices and calculations to ensure compliance with local laws.

Navigating Austrian labor law in-house can be challenging and time-consuming, especially if your staff aren’t familiar with it already. Partnering with an Employer of Record in Austria ensures your business remains compliant with labor laws, protecting you from potential risks and allowing you to focus on growth.

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Frequently Asked Questions

faqs

An Employer of Record handles all legal, HR, and compliance tasks when employing workers abroad, allowing businesses to enter the Austrian market quickly without needing to establish a local entity.

Using an Employer of Record in Austria is typically more cost-effective than setting up a local subsidiary for smaller or medium-sized companies, or in cases where long-term plans are uncertain, as it eliminates initial incorporation costs and reduces ongoing administrative expenses.

Yes, an Austrian Employer of Record manages the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.

Employer of Record services are beneficial for businesses of all sizes, especially those seeking rapid market entry, cost savings, and reduced administrative burdens.

Employer of Records in Austria have local experts who stay updated on regulatory changes and manage all compliance aspects, ensuring your business adheres to Austrian labor laws even as they evolve.

While the Austrian Employer of Record is the legal employer, you retain significant control over day-to-day management and operational decisions regarding your employees.

Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

Public Holidays Calendar

Austria

Date Day Holiday Notes
January 1 Wednesday New Year’s Day Celebrates the first day of the year in the Gregorian calendar.
January 6 Monday Epiphany Commemorates the visit of the Magi to the infant Jesus.
April 21 Monday Easter Monday Observed the day after Easter Sunday.
May 1 Thursday Labour Day Honours the contributions of workers and the labour movement.
May 29 Thursday Ascension Day Commemorates the ascension of Jesus to heaven.
June 9 Monday Whit Monday Celebrates the descent of the Holy Spirit upon the Apostles.
June 19 Thursday Corpus Christi Commemorates the institution of the Holy Eucharist.
August 15 Friday Assumption of the Virgin Mary Honours the assumption of Mary into heaven.
October 26 Sunday National Day Commemorates the Declaration of Neutrality enacted on 26th October 1955.
November 1 Saturday All Saints’ Day Honours all saints, known and unknown.
December 8 Monday Immaculate Conception Celebrates the conception of the Virgin Mary without original sin.
December 25 Thursday Christmas Day Celebrates the birth of Jesus Christ.
December 26 Friday St. Stephen’s Day Honours St. Stephen, the first Christian martyr.

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