Employer of Record (EOR) Austria

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An Employer of Record (EOR) serves as the legal employer for workers in Austria, often referred to as a Global Professional Employer Organization (Global PEO). Acting as your dedicated Employer of Record in Austria, we manage essential employment functions to ensure smooth and compliant operations. This includes rigorous adherence to Austrian labor laws, efficient payroll administration, tax handling, provision of required benefits, and drafting comprehensive employment agreements.

With Mercans as your Employer of Record in Austria, you can count on us to:

Ensure precise compliance with Austrian employment regulations.
Efficiently manage the complexities of local payroll processes.
Expertly handle tax filings and employment-related documentation.
Provide timely payslips for employees.
Guarantee prompt disbursement of salary payments.

Our Global PEO services in Austria offer a streamlined solution for your international expansion, eliminating the need to establish a legal entity. As your trusted Employer of Record in Austria, we ensure compliance with local regulations, establish a strong local presence, and protect your Intellectual Property (IP). This allows your business to stay focused on its core objectives. Leverage our expertise for seamless global mobility, effective work visa management, and building a diverse and productive global team.

Things you need to know before hiring in Austria

Employment Contracts in Austria

Employment contracts in Austria are essential for establishing clear, legally compliant terms between employers and employees. As your Employer of Record (EOR) in Austria, Mercans provides comprehensive support in drafting, managing, and ensuring compliance with these contracts under Austrian labor law. Serving as a Global Professional Employer Organization (Global PEO), we handle all aspects of employment contracts to support your business expansion seamlessly and compliantly.

Key Aspects of Employment Contracts in Austria

In Austria, an employment contract does not require a specific legal form and does not necessarily need to be in writing. However, the contract is defined by the personal dependency of the employee on the employer. This dependency means the employer has decision-making authority, the employee is economically dependent, has a continuous obligation to work for a certain period, and typically uses the employer’s equipment.

There are various types of employment contracts, including temporary, fixed-term, and unspecified-duration contracts. Austrian law also distinguishes between lifetime and permanent employment, as well as contracts for trainee or apprenticeship relationships.

Written Statement (Dienstzettel)

If the employment contract is not provided in written form, Austrian law generally requires that the employee must receive a written statement (Dienstzettel) immediately after the employment relationship starts, unless the employment lasts no more than one month. This statement sets out the employee’s key rights and obligations under the employment relationship.

The Dienstzettel must include the following information:

Name and address of the employer and employee
Date of commencement of the employment relationship
The normal place of work
Any sub-categories in a general system (if applicable)
Job description or intended assignment
Annual leave entitlement (holiday)
Contractual daily and weekly working hours
Reference to the applicable collective agreement or works agreement
Basic salary, including any additional remuneration and the payment date

This written statement ensures that both parties understand the terms of employment and helps to protect the rights of the employee in the absence of a formal written contract.

Working Hours

In Austria, working hours are regulated under the Austrian Working Time Act (Arbeitszeitgesetz, AZG). As a general rule, maximum working time is 12 hours per day and 60 hours per week, provided that the average weekly working time does not exceed 48 hours over a 17-week reference period. Collective agreements can extend this reference period up to 26 weeks, or in certain cases up to 52 weeks.

There are certain scenarios in which working hours may be organized more flexibly, as outlined by Austrian working time rules:

Redistribution of Weekly Hours

Employees can work more hours on individual days if working time is redistributed across the week so that average limits and rest rules are respected.

Sales Staff

Sales employees may be subject to sector-specific collective agreement rules on scheduling, spread of hours, and overtime, provided statutory maximum limits are respected.

Flexible Working Time

In flexible work schedules, employees can extend their daily hours within the boundaries permitted by the AZG and any applicable collective agreement or works agreement.

Public Holidays and Time Off

Working time arrangements can be structured to allow longer rest periods or compensatory time off, provided statutory rest and holiday rules are observed.

These exceptions demonstrate the flexibility in Austria’s working hours framework, allowing for variation depending on the nature of the work and the specific agreement between employer and employee. However, any adjustments to standard working hours must comply with the AZG and other relevant labour regulations.

13th Month Salary

In Austria, employees often receive additional special payments commonly referred to as the 13th and 14th monthly salary. These payments are not set by a universal statutory rule for every employee, but they are very common in practice and are usually provided under collective bargaining agreements or employment contracts.

13th month’s salary

The 13th month’s salary, commonly referred to as the Christmas bonus, is often paid out in November or December. Where it applies, it is usually linked to the employee’s agreed salary and the applicable collective agreement or contract terms.

14th month’s salary

The 14th month’s salary, or vacation bonus, is usually distributed in June or July where provided under the relevant collective agreement or employment contract. In practice, these special payments are a standard feature of many Austrian employment relationships.

These biannual payments play an important role in Austrian compensation structures and are widely used across sectors, although the exact entitlement depends on the applicable collective agreement or employment contract.

Termination of Employment in Austria

Employment contracts in Austria can come to an end in several ways, including mutual agreement, termination with notice by either the employer or the employee, resignation without notice for serious cause, immediate dismissal for cause, the expiration of a fixed-term contract, or termination during the probation period. While dismissals or resignations without notice must be based on justifiable cause, terminations with notice do not require a specific reason. However, employers must adhere to the legally prescribed notice periods (Kündigungsfristen) and termination dates (Kündigungstermine), which may be outlined in laws, collective agreements, or individual contracts. Moreover, if a works council is in place, the employer is obligated to notify it in advance of any planned termination.

Notice Periods

The notice period an employer must provide depends on the employee’s length of service:

Up to 2 years of service: 6 weeks’ notice.
More than 2 years of service: 2 months’ notice.
More than 5 years of service: 3 months’ notice.
More than 15 years of service: 4 months’ notice.
More than 25 years of service: 5 months’ notice.

Employees must generally provide at least 1 month’s notice, regardless of their service duration. This period can be extended up to 6 months if agreed contractually, provided the employee’s notice period is not longer than the employer’s. Different rules may still apply in some sectors through collective agreements or special laws.

Severance Payments

Employees covered by the new severance scheme (Abfertigung Neu) are generally included in a system under which employers contribute 1.53% of the employee’s monthly salary and any special payments to an occupational pension fund. The employer’s obligation to contribute begins with the start of the employment relationship, although the first month is contribution-free. The accumulated capital is generally preserved across types of termination, and whether the employee can draw it out immediately depends on the legal conditions of the severance scheme.

Employment Types – Employees, Independent Contractors, and more

In Austria, the structure of employment is diverse, offering various types of work arrangements that cater to different roles, industries, and levels of flexibility. Each employment type carries its own set of rights, protections, and obligations, outlined as follows:

Employees

Employees in Austria typically have permanent, full-time or part-time contracts. They are entitled to full labor protections under Austrian law, including social insurance coverage, paid leave, and protections against dismissal. Part-time employees receive nearly all the same rights as full-time employees, including social insurance, though marginal employees have reduced mandatory coverage unless other rules apply.

Independent Contractors

Independent contractors, also known as freelancers, work on a contract basis, often in specific roles like language instructors, consultants, or creative fields. Their rights and social insurance position depend on the legal form of the engagement, such as a freie Dienstnehmer relationship or self-employed service contract. Unlike employees, they do not automatically receive benefits like paid leave or standard notice periods unless specifically provided.

Marginally Employed Workers

Marginal employment (Geringfügig Beschäftigung) refers to those earning up to €551.10 per month in 2026. These workers are generally covered by accident insurance, while health and pension insurance depend on whether additional jobs or other insurance-triggering circumstances apply.

New Self-Employed Workers

New self-employed individuals perform commercial activities that do not require a trade license, such as freelance writers, consultants, or psychotherapists. These workers are responsible for registering with the Social Insurance Institution for the Self-Employed and may become subject to compulsory insurance once statutory income thresholds are exceeded.

Apprentices

Apprentices are young workers who undergo vocational training and must sign written apprenticeship agreements. They have full insurance coverage and additional protections against dismissal. Apprenticeships provide structured on-the-job training under the supervision of experienced workers and support Austria’s vocational education system.

Seasonal Workers

Commonly employed in industries like tourism, hospitality, and agriculture, seasonal workers are typically protected by the applicable labour rules and collective agreements that govern working hours, remuneration, and social insurance.

Agency Workers

Agency workers, or temporary workers provided by staffing agencies, enjoy labour protections under Austrian law and specific rules under the Temporary Agency Work Act. Their working conditions are shaped by both statutory rules and collective agreements.

Voluntary Workers

Voluntary workers have trainee status, which means they are under no contractual obligation to perform work and generally do not receive payment. They are distinct from other employment types and usually focus on gaining experience or supporting a cause.

Social Security in Austria

Austria’s social security system requires both employers and employees to contribute to various insurance categories, covering pensions, sickness, unemployment, accident insurance, and other smaller contributions. The rates are divided as follows:

Cost Category	Amount (BYN / %)
Gross Annual Salary	100,000
Employer Social Contributions (~34%)	~34,000
Accident Insurance (0.1%–1.0%)	~100 – 1,000
Total Annual Cost	~134,100 – 135,000

*These percentages apply up to a maximum monthly gross salary assessment base of EUR 6,930.00 for regular payments in 2026 for both employer and employee contributions. For special payments, the annual assessment base is EUR 13,860.00.

Additional Social Security Provisions

Family Member Co-Insurance: Family members may be co-insured under the statutory system subject to the applicable rules. In some cases, a supplementary contribution may apply.

Employer-Specific Levies

Employers in Austria also pay additional levies on payroll:

Family Burdens Equalization Levy: Payable by employers in addition to standard social insurance costs.
Municipal Payroll Tax: Generally 3% of monthly gross salaries and wages.
Public Transportation Levy: A local levy applicable in Vienna.
Chamber of Commerce Contribution: Payable by employers subject to the relevant rules.
Employee Pension Fund Contribution: 1.53% of monthly salary and special payments under the severance scheme for eligible employment relationships.

These contributions support Austria’s social welfare system, ensuring broad social security coverage for employees and their families while providing important financial support for public and regional services.

Payroll in Austria

Minimum Wages

Austria does not have a universal statutory national minimum wage. In practice, minimum pay is usually determined by the applicable collective bargaining agreement or, in limited cases, by a minimum wage tariff. Employers must therefore check the relevant industry agreement to determine the correct minimum remuneration.

Overtime Pay

Overtime in Austria is generally defined as work beyond the applicable normal working hours. In many cases, this means work beyond 8 hours per day or 40 hours per week, although normal working time can be distributed differently under collective agreements or flexible working time arrangements.

Eligibility

Employees may generally refuse overtime that would exceed 10 hours per day or 50 hours per week without giving reasons, and they may not be disadvantaged for doing so.

Compensation

Overtime is generally compensated with a 50% premium on the employee’s standard wage. Time off in lieu can also be agreed, and 1.5 hours of time off accrues per hour of overtime where this method is used.

Payroll Cycle

In Austria, the payroll cycle is typically monthly, with employees commonly receiving their wages on the last working day of each month. Employers may opt to pay on an alternative date if this is agreed upon in the employment contract or stipulated in a collective bargaining agreement.

Personal Income Tax in Austria

In Austria, residents are taxed on their worldwide income, which includes earnings from employment, business activities, investments, and property. Non-residents, however, are only taxed on income derived from Austrian sources. Non-residents are subject to the same tax rates as residents on Austrian-source income, subject to the applicable tax rules for non-residents.

Personal Income Tax Rates

Austria applies a progressive income tax system, with the following rates for 2026:

Tax Rate	Taxable Income (BYN)
13%	Standard rate on most Belarus-sourced income
25%	Income exceeding ~BYN 350,000 annually
30%	Income exceeding ~BYN 600,000 annually

Payroll Withholding Tax (WHT) Examples

For individuals subject to Austrian social security, wage tax and social security contributions are withheld from salary. Payroll withholding calculations should always be aligned with the current year’s tax bands, deductions, and social security values.

Tax Rate	Taxable Income (BYN)
13%	Standard rate on most employment and personal income
25%	Income above ~BYN 350,000 annually
30%	Very high income (above ~BYN 600,000 annually)

Filing Requirements

For employees whose only source of income is employment subject to wage tax, there is often no obligation to file an income tax return. However, filing may still be necessary or beneficial depending on other income, deductible expenses, or the employee’s specific tax position.

Sole Earner Tax Credit

The sole earner credit and other deductions are adjusted under current Austrian tax rules and should be checked for the relevant tax year when payroll or annual tax compliance is assessed.

Local Income Taxes

Austria does not impose any local income taxes. All personal income taxes are managed at the federal level.

Austria Employee Hiring Cost

Let’s consider an employee with a gross annual salary of EUR 100,000. While the gross salary is the amount the employee earns before deductions, the total cost to the employer includes additional expenses such as social security contributions, taxes, severance contributions, and other employer liabilities. This breakdown helps to understand the full financial commitment an employer has when hiring an employee in Austria.

For this example, the employer’s total cost will depend on the employee’s contribution base, applicable collective agreement, location-specific levies, and whether contribution ceilings apply during the year. Employer cost calculations should therefore be reviewed case by case using current payroll rates and thresholds.

Social Security Category	Employee Contribution	Employer Contribution	Total Contribution
Social Protection Fund (Pension + Social Insurance)	1%	34%	35%
Accident Insurance (Belgosstrakh)	0%	0.1% – 1.0%	0.1% – 1.0%
Total	~1%	~34% – 35%	~35% – 36%

This table illustrates how the employer’s total annual cost consists not only of the employee’s gross salary but also the additional employer costs required by Austrian labor laws.

Employee Benefits in Austria

Austria provides a robust system of employee benefits that combines statutory protections with supplementary employer-provided perks. These benefits ensure workers are covered in areas such as health, retirement, accident protection, and unemployment, while also offering additional support for their well-being and work-life balance.

Health Insurance: Health insurance in Austria is mandatory for employees and forms part of the statutory social insurance system. It covers a broad range of medical services, including doctor visits, hospital treatment, medicines, and rehabilitation.
Accident Insurance: Austria’s mandatory accident insurance primarily covers work-related accidents and occupational diseases. Employers are required to insure employees against these risks under the statutory system.
Pension Insurance: Austria’s pension system consists of three pillars to support income in retirement:
- First Pillar (State Pension): A basic state pension, funded through employee and employer contributions.
- Second Pillar (Occupational Pension): Voluntary employer-provided pensions to supplement the state pension.
- Third Pillar (Private Pension): Private pension savings that employees can choose to invest in, often with tax benefits to encourage long-term saving.
Unemployment Insurance: Unemployment insurance is designed to support employees who lose their jobs involuntarily. It offers financial assistance and job placement services. Contributions to this insurance are shared between employees and employers, and benefits are paid based on prior earnings and the duration of insurance coverage.
Parental Leave: Austrian employees are generally entitled to parental leave until the child’s second birthday, provided the statutory conditions are met. Job protection applies during the protected period, and parental leave should be distinguished from childcare allowance arrangements.

In addition to statutory benefits, many Austrian employers offer supplementary benefits to attract and retain employees. These perks include:

Health Insurance Perks: Employers often provide group health insurance plans that cover more services or offer discounted premiums, ensuring employees have access to high-quality medical care beyond the statutory coverage.
Life and Accident Insurance: Life insurance policies help provide financial support to an employee’s family in case of death. Similarly, accident insurance helps protect employees from the financial burden of accidental injury, covering medical treatments, rehabilitation, and even disability compensation.
Occupational Disability Insurance: This insurance is particularly important for employees who are at risk of losing their ability to work due to illness or injury. It provides income replacement to ensure financial stability if an employee becomes unable to perform their job.
Retirement Savings Plans: Employers in Austria often offer additional retirement benefits through company pension plans or direct insurance schemes. These plans allow employees to save for retirement, with potential tax benefits for both the employer and employee.
Severance Pay: Under Austrian law, severance obligations for newer employment relationships are generally handled through the statutory severance fund contribution system. Employers may also use external providers to support administration and funding.

Flexible Work Arrangements: Flexible working hours and home office options are becoming increasingly popular in Austria, allowing employees to manage their professional and personal commitments more effectively.
Wellness and Mental Health Support: Employers often offer wellness programs, including access to employee assistance programs (EAP), mental health support, and fitness memberships, to promote the physical and mental well-being of their employees.
Transportation Benefits: Subsidized public transport passes, commuter benefits, or parking discounts are commonly offered to employees, making daily commutes more affordable and convenient.
Educational Assistance: Many Austrian companies support the professional development of their employees by offering financial assistance for continuing education or job-relevant certifications.
Childcare and Family Support: Childcare allowances or on-site childcare facilities are provided by some employers to assist working parents. Additionally, some companies offer family-friendly policies, including sabbaticals and parental support initiatives.
Employee Discounts and Perks: Employees can often access discounts or special offers for products and services from partner companies. These perks help employees save money on a range of goods and services, enhancing their overall benefits package.

Statutory Benefits in Austria

Health Insurance: Health insurance in Austria is mandatory for employees and forms part of the statutory social insurance system. It covers a broad range of medical services, including doctor visits, hospital treatment, medicines, and rehabilitation.
Accident Insurance: Austria’s mandatory accident insurance primarily covers work-related accidents and occupational diseases. Employers are required to insure employees against these risks under the statutory system.
Pension Insurance: Austria’s pension system consists of three pillars to ensure a stable income post-retirement:
- First Pillar (State Pension): A basic state pension, funded through employee and employer contributions.
- Second Pillar (Occupational Pension): Voluntary employer-provided pensions to supplement the state pension.
- Third Pillar (Private Pension): Private pension savings that employees can choose to invest in, often with tax benefits to encourage long-term saving.
Unemployment Insurance: Unemployment insurance is designed to support employees who lose their jobs involuntarily. It offers financial assistance and job placement services. Contributions to this insurance are shared between employees and employers, and benefits are paid based on prior earnings and the duration of insurance coverage.
Parental Leave: Austrian employees are generally entitled to parental leave until the child’s second birthday, provided the statutory conditions are met. Job protection applies during the protected period, and parental leave should be distinguished from childcare allowance arrangements.

Supplementary Benefits

In addition to statutory benefits, many Austrian employers offer supplementary benefits to attract and retain employees. These perks include:

Health Insurance Perks: Employers often provide group health insurance plans that cover more services or offer discounted premiums, ensuring employees have access to high-quality medical care beyond the statutory coverage.
Life and Accident Insurance: Life insurance policies help provide financial support to an employee’s family in case of death. Similarly, accident insurance helps protect employees from the financial burden of accidental injury, covering medical treatments, rehabilitation, and even disability compensation.
Occupational Disability Insurance: This insurance is particularly important for employees who are at risk of losing their ability to work due to illness or injury. It provides income replacement to ensure financial stability if an employee becomes unable to perform their job.
Retirement Savings Plans: Employers in Austria often offer additional retirement benefits through company pension plans or direct insurance schemes. These plans allow employees to save for retirement, with potential tax benefits for both the employer and employee.
Severance Pay: Under Austrian law, severance obligations for newer employment relationships are generally handled through the statutory severance fund contribution system. Employers may also use external providers to support administration and funding.

Additional Employee Perks

Flexible Work Arrangements: Flexible working hours and home office options are becoming increasingly popular in Austria, allowing employees to manage their professional and personal commitments more effectively.
Wellness and Mental Health Support: Employers often offer wellness programs, including access to employee assistance programs (EAP), mental health support, and fitness memberships, to promote the physical and mental well-being of their employees.
Transportation Benefits: Subsidized public transport passes, commuter benefits, or parking discounts are commonly offered to employees, making daily commutes more affordable and convenient.
Educational Assistance: Many Austrian companies support the professional development of their employees by offering financial assistance for continuing education or job-relevant certifications.
Childcare and Family Support: Childcare allowances or on-site childcare facilities are provided by some employers to assist working parents. Additionally, some companies offer family-friendly policies, including sabbaticals and parental support initiatives.
Employee Discounts and Perks: Employees can often access discounts or special offers for products and services from partner companies. These perks help employees save money on a range of goods and services, enhancing their overall benefits package.

Work Permit in Austria

Austria is an appealing destination for international professionals, ranging from students to researchers, due to its high quality of life and strong labor market. However, navigating Austria’s work permit and visa regulations can be complex. If your company is expanding into Austria and planning to hire foreign employees, understanding the different visa and work permit options is crucial to remain compliant with local laws and ensure smooth operations.

Types of Work Visas in Austria

Austria distinguishes between European Union (EU)/European Economic Area (EEA) nationals and non-EU/EEA nationals when it comes to visa and work permit requirements. EU/EEA citizens generally do not require a work permit to work in Austria, while many third-country nationals must apply for a residence title with work authorization. For non-EU nationals, there are several routes depending on the applicant’s circumstances:

Red-White-Red Card

The Red-White-Red Card is one of the main residence and work permits for qualified third-country nationals. It is typically valid for 24 months and allows the holder to live and work in Austria for a specified employer. Categories include very highly qualified workers, skilled workers in shortage occupations, other key workers, start-up founders, and certain graduates.

Jobseeker Visa

This visa allows very highly qualified workers to enter Austria for up to six months to search for a job. Once suitable employment is secured, the applicant may apply for a Red-White-Red Card.

EU Blue Card

The EU Blue Card is available to qualified third-country nationals with a binding job offer of at least six months in Austria, provided the role matches their education and the salary threshold is met. For 2026, the required minimum gross annual salary is €55,678 including special payments. There is no points system for EU Blue Card applicants.

Residence Permit for Students and Graduates

Foreign students and graduates in Austria may have options to remain in the country to search for employment or switch to an employment-based residence title, depending on their status and qualifications.

Short-Stay Business Travel

For short business visits, entry requirements depend on nationality, Schengen rules, and the purpose of travel. A short-stay visa does not generally replace a proper work-authorized residence title where employment in Austria is involved.

Red-White-Red Card Plus

This permit allows fixed-term settlement with unrestricted labour market access and is often available after qualifying prior residence and employment in Austria.

Requirements for Austria Work Visas

Austria uses a points-based system for some categories of the Red-White-Red Card. Applicants’ qualifications, work experience, salary level, language skills, and other criteria are evaluated to determine the appropriate visa or work permit category.

Some of the requirements to obtain a work permit or residence title can include:

A valid passport and a recent photo
Proof of accommodation in Austria
Health insurance coverage that is valid in Austria
Proof of qualifications, such as a university or higher education degree
Work experience, including testimonials, certificates, and references
Language skills, depending on the route and the job
Employer documentation where the permit is employer-sponsored
Biometric data

Highly qualified workers or those applying for specialized positions may also need to provide evidence of their accomplishments, such as research or innovation contributions, awards, or research publications.

Process of applying

Depending on the route, applications may be filed either by the applicant through the competent Austrian embassy or consulate abroad, or by the prospective employer or applicant with the competent residence authority in Austria. Fees vary depending on the type of permit and the stage of the application.

After submitting the required documents, the Austrian immigration authorities will process the application. If successful, applicants will receive a residence title or permit that allows them to live and work in Austria under the conditions stated in the permit. In many cases, permits are issued for a limited time and can later be renewed or converted if the legal requirements are met.

It’s important to note that many Austrian work-authorized permits are residence titles that combine residence and labour market access. Applicants should always verify whether the specific route requires separate steps for entry, residence registration, and work authorization.

Additional considerations

Temporary Residence: Foreign employees usually need a residence title that allows them to stay in Austria lawfully for the duration of their employment.
Permanent Residency: After a qualifying period of lawful residence, foreign nationals may become eligible for long-term residence status if statutory requirements are met.
Family Reunification: Eligible permit holders may be able to bring family members to Austria, subject to the applicable residence rules.
Professional Support: The process for obtaining a work visa and residence permit can be complex. For companies hiring foreign workers, it may be beneficial to consult with a local immigration expert or employ a Global PEO (Professional Employer Organization) to ensure the visa process runs smoothly.

EOR Solutions in Austria

EOR for Prospective Employees in Austria

Mercans offers comprehensive Employer of Record (EOR) services for businesses that have already identified their ideal candidates in Austria. Our solutions cover all aspects of the employee lifecycle, ensuring full compliance with Austrian labor laws and regulations, and enabling a smooth, hassle-free employment experience.

EOR + Recruitment in Austria

For businesses seeking assistance with talent acquisition, Mercans provides a complete EOR and recruitment service. Leveraging our extensive network and industry expertise, we help you identify, recruit, onboard, and retain top talent, ensuring a streamlined and successful expansion into the Austrian market.

Visa Sponsorship and Global Mobility in Austria

Navigating the complexities of expatriate employment is made easier with our visa sponsorship and global mobility services. Mercans helps facilitate the relocation of your international workforce, ensuring compliance with Austrian immigration and employment laws while supporting a smooth transition for your team.

AOR for Contractor Payments in Austria

Mercans offers Assistance on Record (AOR) services to businesses dealing with contractor payments in Austria. We manage the complexities of contractor payment processing, ensuring accuracy, timeliness, and full compliance with local regulations.

Converting Freelancers to Employees in Austria

Mercans supports the transition from independent contractors to full-time employees in Austria. Our expertise ensures a seamless conversion process, adhering to Austrian labor laws and minimizing administrative burden.

HCM Integration in Austria

Integrate Mercans’ EOR services with your Human Capital Management (HCM) system in Austria for efficient, real-time data exchange. Our solution enhances compliance, optimizes payroll processes, and improves cost-efficiency, providing a unified approach to workforce management and operations in Austria.

Best Employer of Record Austria

Mercans is the leading Employer of Record (EOR) provider in Austria for the following reasons:

Compliant with Austrian Labor Laws and The Labour Inspectorate:
Mercans ensures full compliance with all regulations set by Austrian labor authorities, including the competent employment, tax, and social security bodies. We prioritize adherence to labor standards, worker protections, and workplace safety, providing a secure and legally sound employment solution.
Independent Entity:
As a standalone entity, Mercans operates autonomously, offering reliable and customized employment services tailored to meet the specific needs of your business in Austria.
Supports Diverse Employment Types:
Mercans effectively manages all types of employment, including full-time employees, freelancers, contractors, and expatriates, delivering flexible solutions that cater to various business models and staffing needs.
Tailored for Enterprise Businesses:
Mercans is designed to support large enterprises with scalable, sophisticated services that accommodate complex organizational structures and high-volume operations, making it an ideal partner for multinational companies operating in Austria.
Multi-Currency Payroll Management:
Mercans offers payroll management in multiple currencies, making it easy for global businesses to streamline financial operations and ensure consistency across international teams, including those in Austria.
Global Presence and Multi-Country Payroll Expertise:
With a strong international presence, Mercans is highly proficient in handling multi-country payroll, ensuring seamless operations and compliance across borders, including for your teams in Austria.
GDPR Certified, SOC 1 & SOC 2 Compliant:
Mercans adheres to the highest data protection and security standards, with GDPR certification and SOC 1 & SOC 2 compliance, ensuring your company’s data remains secure and confidential while operating in Austria.
ISO 20000 & ISO 27001 Certified:
Holding ISO 20000 and ISO 27001 certifications, Mercans demonstrates a commitment to delivering exceptional IT service management and maintaining top-tier information security practices in Austria.
OWASP ASVS 3.0 Compliant:
Mercans meets the OWASP ASVS 3.0 standards, ensuring robust security in the development and management of applications, providing additional peace of mind for your business in Austria.
HRBlizz Platform:
Mercans’ proprietary HRBlizz platform is a global payroll and talent management SaaS solution that simplifies payroll processes while ensuring compliance with Austrian labor laws and regulations. With a network of over 1,000 in-country experts, it offers deep knowledge of local business protocols.
G2N Nova Payroll Engine:
G2N Nova is the world’s most advanced native payroll engine, providing gross-to-net payroll processing in over 100 countries, including Austria. Available as a SaaS or service delivery platform, it integrates seamlessly with major Human Capital Management (HCM) and Workforce Management systems, offering efficiency and compliance.

Conclusion

In conclusion, Mercans offers comprehensive and compliant Employer of Record (EOR) solutions tailored for businesses operating in Austria. With a deep understanding of Austrian labor laws and payroll requirements, Mercans ensures that companies can hire, manage, and pay employees with confidence in their legal and regulatory obligations. Whether you’re expanding your operations in Austria, managing a diverse workforce, or looking for a streamlined payroll and benefits solution, Mercans provides the expertise and infrastructure to support your business. From visa sponsorship to multi-currency payroll and full data security certifications, Mercans is your trusted partner for navigating the complexities of employment in Austria, allowing you to focus on growth while we handle the administrative and compliance challenges.

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.

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FAQs

What is an Employer of Record (EOR) in Austria?

An Employer of Record in Austria is a service provider that legally employs staff on behalf of a foreign company. The EOR handles contracts, payroll, taxes, statutory benefits, and ensures compliance with Austrian labor laws, allowing businesses to hire locally without setting up an Austrian entity.

How can foreign companies hire employees in Austria without establishing a local entity?

Foreign companies can work with an EOR, which serves as the official employer while the client company oversees day-to-day operations. This approach allows businesses to enter the Austrian market without forming a branch or subsidiary.

What compliance, payroll, and HR services does an EOR in Austria manage?

An EOR in Austria manages employment contracts, payroll processing, tax withholdings, social security contributions, mandatory benefits, and government filings. They can also support work permits and visa applications for international hires.

What are the benefits of using EOR services in Austria?

Using an EOR simplifies market entry, ensures adherence to Austrian labor regulations, reduces administrative burdens, mitigates legal risks, and accelerates hiring processes.

How much does it cost to hire employees through an EOR in Austria?

Costs vary based on services but generally range from $500 to $2,000 per employee per month. Companies should consult the EOR provider for precise pricing.

Is an EOR the right solution for expanding a business into Austria?

An EOR is ideal for companies looking to expand into Austria without establishing a local entity. It allows businesses to focus on core operations while the EOR handles all employment-related responsibilities.