Guide to living and working in Austria

Austria

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Country Overview

 

Population

8.4m

Unemployment Rate

4.3% (11/2007)

Average annual unemployment rate 1995 – 2004

4%

GDP

€246bn / $365bn

GDP per head

€25,115 / $37,330

Capital

Vienna

Major language

German

Life Expectancy (UN)

77 years (men)

83 years (women)

Monetary unit

1 euro = 100 cents

Internet domain

.at

International dialing code

+43

 

The Economy

Boosted by strong exports, growth in Austria reached 3.3% in both 2006 and 2007.
In April 2007, 3,310,649 persons were in employment, including 401,136 foreign nationals. A total of 219,375 persons were unemployed – down by 13,083 from the previous April.

 


 


Austria has a well-developed market economy and a high standard of living. It has close ties to other EU economies, especially Germany. The Austrian economy also has strong commercial relations with Central, Eastern, and South-Eastern Europe, especially in the banking and insurance sectors. The economy features a large service sector, a sound industrial sector, and a small, highly developed agricultural sector. Industries include: construction, machinery, vehicles and parts, food, metals, chemicals, lumber and wood processing, paper and paperboard, communications equipment and tourism.


Pay

 

 

 

 

Human development Index

Ranking:  15th
Index value:  0.948

 

The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 


Getting a job

Overview of the labour market:

The sectors employing most people are: manufacturing, the wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods, real estate, renting and business activities, construction, health and social work. Among the companies with the largest numbers of employees are the Spar Österreich group (trade), Rewe Austria (trade), Vienna airport and the Austrian Federal Railways.

There is a demand for people with higher-education qualifications (from vocational education, training colleges or universities and institutions of higher technical education) who possess sound specialised knowledge, a good command of English, knowledge of Eastern European languages and accompanying ‘soft skills’, such as communication and intercultural skills.
Applying for a job:
Your application should be written in German, unless requested otherwise. It is common practice to send applications to firms which have not advertised a vacancy (applying “on spec”). Your application should include: a cover letter; a curriculum vitae; references and certificates (school-leaving certificate, testimonials, and evidence of attendance at important work-related courses); letter(s) of recommendation; passport photograph. Your CV should consist of no more than two A4 sheets. Previous periods of employment should be arranged chronologically, beginning with your first job and ending with your most recent one. This also applies to the education and training section.


Conditions and rights


Employment law:

This is based on a clear distinction between blue and white collar workers. A comprehensive system of collective agreements is in place and workers are obliged to belong to their local chamber of employees which provides them with free legal advice. Special courts exist to handle labour issues and there is a general ban on dispute resolution through arbitration.

Working hours:

Standard hours: 
An eight-hour working day and a 40-hour working week.
Overtime:
If normal working time (40 hours per week) is exceeded, the excess counts as overtime. Overtime qualifies for an overtime premium of at least 50%. If no time off is given to compensate overtime, it must be paid.

Holidays and leave:

Employees have a minimum entitlement to paid annual leave of five weeks for each year worked; 30 leave days (working days) a year. After 25 years of service this entitlement increases to six weeks (36 leave days).
Public holidays: 1 January, 6 January, Easter Monday, 1 May, Ascension, Whit Monday, Corpus Christi, 15 August, 26 October, 11 November, 8 December, 25 December and 26 December. For members of the Evangelical Church, the Old Catholic Church and the Methodist Church, Good Friday is also a holiday.

Sickness leave:
In the event of sickness, industrial accidents, occupational illnesses and convalescence, your remuneration will continue to be paid by your employer for 12 weeks. After that, you receive sick pay from the social security system.
Maternity leave:
Normally begins eight weeks before birth and ends eight weeks from the date of birth.
Educational and study leave: If a person has been in continuous employment for at least three years, he/she may take a period of educational or study leave (from three months to one year) with the employer’s agreement. Wages and salary are not paid during this period, but the employee will receive a training allowance from the Employment Service (AMS).

Bonuses:

In addition to normal pay, employees also receive a holiday bonus once a year (the “13th month” pay cheque) at the same level as the normal monthly salary. This is taxed at a lower rate.

 

Contracts

 

Types of employment:

In Austria, anyone can work from the age of 15, with school attendance being compulsory until this age. Young people up to the age of 18 are covered by child and youth protection legislation.
Part-time working is widespread in trade.
Seasonal work is common in tourism and the hotel and catering trade in cities and tourist areas.
In the building trade, fixed-term employment contracts are also common.
Freelance service and work contracts are replacing conventional employment contracts in all fields of employment.
Nevertheless, the conventional contract of employment in a permanent employment relationship with all its rights (leave entitlement, protection against dismissal, social insurance, etc.) continues to be the usual form of employment contract.

Employment contracts:

A contract of employment can be made in writing, verbally or implicitly (e.g. commencement of the activity with subsequent payment). Apprenticeship agreements must be concluded in writing. Legally, a distinction is made between a contract of employment, a freelance contract and an employment relationship resembling that between an employer and an employee (newly independent workers and work contractors with a trade licence are covered by the latter).
If no written contract of employment is made, employees should receive a statement of terms and conditions (Dienstzettel) immediately at the start of the employment relationship. A Dienstzettel must contain the following information: name and address of the employer; name and address of the employee; date on which the employment relationship began; normal place of work; any classification in a general system; intended assignment; basic salary or wages; any additional payments (e.g. bonuses or other benefits); dates on which salary is due; annual leave entitlement; contractual normal daily and weekly working hours; indication of the applicable collective agreement or works agreement; period and term of notice. If the employment relationship is for a defined period, the Dienstzettel must also state the date when the employment relationship is to end.
At the beginning of an employer-employee relationship, a probationary period can be agreed. This usually cannot legally exceed one month. During this probationary period both the employer and the employee may dissolve the employer-employee relationship without specifying a cause.

 

Work permits and Visas

‘Old’ EU citizens: For citizens from EEA (European Economic Area – EU 25 plus Iceland, Liechtenstein, Norway & Switzerland) countries there are no special requirements for permission to work in Austria. If you stay longer than three months, you have to apply for a special ID-card, which includes a residence permit. If you do not have a job at this time, you will be granted a 6-month residence permit; with a job, you get a 5-year permit.
‘New’ EU citizens: (Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Bulgaria and Romania) wanting to work in Austria need a work permit which their employer should apply for. After a year of legal employment, a worker gains the right to ‘freedom of movement’ which will be confirmed by the Labour Market Service. This means they have the right to permanently work and reside in Austria. It expires if they leave the country for more than just a short period.
Non-EU citizens: There are two types of visas: The Class C visa (Tourist Visa) is the most common visa for visitors; it is issued for a three month stay and allows you to travel through all EU-countries that are part of the Schengen Area. The Class D visa is especially for Austria, it is issued for a maximum 6-month stay. With the class D visa you can travel through other Schengen countries, but only for 5 days in order to reach Austria. You have to contact the Austrian consulate in your country of residence to acquire the visa. You are not allowed to work in Austria with a class C or class D visa.

Work permits:

The Austrian authorities issue three types of work permits:

  • Restricted work permit (Beschäftigungsbewilligung for one year)
  • Work permit (Arbeitserlaubnis for two years)
  • Unrestricted work permit (Befreiungsschein for five years)


You first apply for the restricted work permit. Then you need at least two periods (2 years each) of employment with the work permit. After five years, you can get the unrestricted work permit. Work permits must be applied for by the employer and obtained prior to the departure from the country of residence.

NB: Everyone (EU and non-EU citizens) must register at a local police station or the district’s registration office within three days of arrival.


Tax, social security and healthcare


Taxes and Social Insurance:

Austria has a progressive tax system with 4 bands varying from 0%-50%. Every employee in Austria makes compulsory contributions to a social insurance fund which covers medical treatment, pension contributions, unemployment benefits, etc. Top-up insurance is available if you wish to receive preferential treatment (choosing a specific doctor, etc). Expatriates should consider additional medical insurance for medical repatriation and/or choosing a doctor (e.g. one that speaks your language).

The social security system

This covers the following circumstances: sickness, incapacity for work, invalidity, maternity, unemployment, old age, death of a person liable to provide maintenance, survivors’ pensions, nursing care and poverty.
Insurance is compulsory for persons who are either self-employed or in paid employment and their dependants.
Insured persons are legally entitled to certain benefits.
Funding comes principally from income-related insurance contributions.
Those with higher incomes – who therefore pay higher social insurance contributions – help to fund benefits for those with lower incomes.
As an employee with an employment contract and statement of terms and conditions (Dienstzettel) you are automatically covered by social insurance. Your employer will register you with an insurance institution. Employee insurance contributions are deducted monthly from gross wages by the employer. Self-employed and voluntarily insured persons need to register with an appropriate insurer and pay their own contributions directly.

Health insurance:

In general, persons employed in Austria and their immediate family members are covered by public health insurance. Persons who are not subject to compulsory insurance and are resident in Austria can register themselves for public health insurance by paying a monthly fee. The district health insurance fund for the province in which the applicant is resident is responsible for arranging this self-insurance.

 

Lifestyle


Austria is a relatively conservative country where traditional values are still mainstream.  Family and the home are both very important. The country has a developed state education and heathcare system complemented by the private sector.  The natural beauty of the country means out door pursuits are popular.

Report compiled : 2008