Working life country profile for Austria
This profile describes the key characteristics of working life in Austria. It aims to provide the relevant background information on the structures, institutions, actors and relevant regulations regarding working life.
This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are systematically updated every two years.
‘Individual employment relations’ refers to the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over terms and conditions. This section looks at the start and termination of the employment relationship and entitlements and obligations in Austria.
Requirements regarding an employment contract
The employment of children (minors who are under the age of 15 or, if older, have not completed their compulsory schooling) is in principle prohibited (under certain provisions, children aged 12 and over who work at home or in a close relative’s business are exempt from this rule). Therefore, 15 years is the minimum working age in Austria. In general, there are no formal requirements for concluding an employment contract. If both parties provide declarations of their willingness to establish a continuing contractual relationship, an employment contract is concluded. Freedom of form is a basic element of employment contracts in Austria, which means they may be established in oral or written form. Even in the absence of explicitly defined terms, statutory law and collective agreements guarantee minimum standards of employment conditions and therefore must be considered in every employment relationship.
Dismissal and termination procedures
The unilateral termination of employment (Kündigung) does not need to be justified in Austria. An employee or employer can withdraw from an employment contract that has been concluded for an unspecified duration without giving reasons. A period of notice, which is related to job tenure, needs to be observed (as set out by law or a collective agreement). It ranges from 6 weeks (for employees with up to 2 years of service) to 5 months (for employees with 26 years of service or more).
Parental, maternity and paternity leave
In Austria, maternity leave is obligatory and accessible only to mothers. A variety of options exist for parental leave that fathers can benefit from. New regulations regarding parental leave and a ‘family time bonus’ (essentially paternity leave for fathers, to be taken within two months of the birth of their child) were implemented in 2017, and a legal right to the leave was established in September 2019 (before, agreement between the employee and employer was needed). The share of fathers taking parental leave has stagnated at a very low level in the past decade: men account for only 4.5% of approved days of childcare allowance in 2018, the same share as in 2009.
Statutory leave arrangements
Maternity leave | |
Maximum duration | 16 weeks: 8 weeks prenatal and 8 weeks postnatal maternity leave. It is obligatory and cannot be taken by fathers. Postnatal leave is extended to 12 weeks in the event of premature birth, multiple births or a caesarean section. |
Reimbursement | 100% of average income in the last three months of employment before being on maternity leave, plus a supplement for bonus payments (essentially, a share of the 13th and 14th monthly payments). |
Who pays? | FLAF (70%), financed by contributions from employers (3.9% of the employee’s salary) and from general taxes; and public health insurance (30%). |
Legal basis | Maternity Protection Act (Mutterschutzgesetz) (1979). |
Parental leave | |
Maximum duration | According to labour law, the maximum duration of parental leave (family entitlement) extends up to the child’s second birthday. There are no mandatory periods for fathers. |
Reimbursement | Parents can choose between a flat-rate childcare benefit and an income-related benefit. Flat-rate benefit The period for which the benefit can be claimed can vary by choice from between 12 months and 28 months for one parent (365 to 851 days). If the second parent also claims the benefit, the maximum period for both parents increases to between 15 and 35 months (456 to 1,063 days). Depending on the period of leave or the period for which the benefit is claimed, the daily rate in 2023 was between €15.38 and €35.85 (this corresponds to about €1,090 a month for 12 (or 15) months for the shortest period and €467 a month for 28 (or 35) months for the longest period). Twenty per cent of the total drawing period is reserved for each parent; this is non-transferable. This means that if both partners draw the benefit, at least 20% must be drawn by the second partner. For the shortest period, the minimum duration for each parent is 91 days and, for the longest period, the minimum share for each parent is 212 days (around 7 months). If the parents share the period for which the benefit is claimed (at a ratio of at least 40:60), an additional partner bonus of €1,000 (€500 for each parent) is granted. Income-related benefit This benefit equates to 80% of the net income for 12 months (if only one partner claims it) or 14 months (if both partners claim it), with an upper threshold of €69.83 per day in 2023 (around €2,095 per month). The partner bonus (€500 each if they share the leave at a ratio of at least 40:60) is also granted. Both partners may claim both the flat-rate benefit and the income-related benefit at the same time for up to 31 days. |
Who pays? | FLAF |
Legal basis | Maternity Protection Act (1979), Paternity Leave Act (Väter-Karenzgesetz) (1989), Childcare Benefit Act (Kinderbetreuungsgeldgesetz) (2001). |
Paternity leave | |
Maximum duration | A ‘family time bonus’ (Familienzeitbonus) for fathers was introduced on 1 March 2017. Adoptive or foster fathers are also eligible, as are same-sex partners (adoptive or foster parents). On 1 September 2019, a legal right to four weeks’ unpaid leave on the birth of a child was implemented for fathers; during this time, the family bonus can be claimed (before, this ‘Papamonat’ had to be agreed with the employer). |
The duration of family time is between 28 and 31 days, within 91 days of the birth of a child; the earliest day on which it can start is the day of birth. | |
Reimbursement | Daily rate of €23.91 (maximum of around €740 for 31 days). The monetary allowance received during family time is deducted from the father’s daily rate of childcare benefit if he later takes parental leave for births up until 31 December 2022. For births from 2023 onwards, this has been abolished. |
Who pays? | FLAF |
Legal basis | Family Time Bonus Act ( Familienzeitbonusgesetz) (2017). |
Note : FLAF, Family Burdens Equalisation Fund (Familienlastenausgleichsfond).
Sick leave
If workers are unable to work due to illness or accident and are therefore on sick leave (Krankenstand), they are entitled to the continued payment of their full wages by their employers for a certain period (depending on their job tenure, up to 12 weeks). Once this period of full payment by the employer ends, employees are entitled to receive half of their pay from the employer for another four weeks. During these four weeks and up to one year after the beginning of the sick leave, they are provided with sickness benefits through health insurance. The amount is set at 60% of the employee’s former monthly wage; during the four weeks when they are granted half their pay by their employer, half of the sick benefits (30% of their former monthly wage) are granted as a top-up.
Retirement age
In Austria, the current statutory retirement age is 65 years for men and 60 years for women. According to the current legal framework, between 2024 and 2033 the pensionable age for women will gradually be increased by 0.5 years per year until it is equal to the pensionable age for men. For all pre-retirement schemes there is a deduction of 4.2% per pre-retirement year. In addition, a bonus of 4.2% per year is granted to those retiring after age 60 (for women) or 65 (for men).
