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Austria: Pay and benefits

Original and updating author: Silva Palzer, Eversheds Sutherland (Austria)
Updating authors: Karin Koller and Manuel Boka, Eversheds Sutherland (Austria)

Consultant editor: Martin Risak

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 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 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 Pay for employees not at work)