Austria: Pay and benefits

Original and updating author: Silva Palzer, Eversheds Sutherland (Austria)
Updating author: Sandra Singhofer, Eversheds Sutherland (Austria)

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Summary

• The payment of remuneration by an employer in return for work performed by its employees is a common element of the employment contract. (See General)
• Payment of wages is subject to little statutory regulation, and is dealt with mainly by collective bargaining agreements, works agreements and employment contracts. (See Payment of wages)
• Other than certain deductions permitted or required by statute, the employer is generally not permitted to make deductions from an employee's pay without the employee's consent. (See Deductions)
• Discrimination in remuneration is prohibited on grounds including sex, ethnic affiliation, religion or belief, age, sexual orientation and disability, and criteria for pay-setting must take into account the principle of equal pay for equal work or work of equal value. (See Equal pay)
• There is no statutory national minimum wage, although binding minimum rates are set by collective bargaining agreements, which cover most employees. (See Minimum wages)
• The main form of pension provision is a statutory, earnings-related occupational scheme, based on mandatory employer and employee social insurance contributions. (See Pensions)
• Employers must withhold employees' income tax at source, and employers and employees must pay statutory social insurance and related contributions. (See Income tax and social security)
• Employees who are absent from work due to sickness or injury have a statutory entitlement to sick pay from their employer for six to 12 weeks' full pay plus four weeks' half pay, depending on length of service. (See Sick pay)
• It is common for employers to provide certain benefits in kind for employees. (See Benefits in kind)