HR and payroll in Austria - complete Lohnverrechnung service

HR and payroll service in Austria (Lohnverrechnung) includes preparing monthly payroll lists, settling Lohnsteuer, social insurance contributions (SV) and mandatory reports to Finanzamt and insurance institutions. The system also takes into account the 13th and 14th salary, minimum 25 days of holiday and collective agreements (KV). We provide full HR and payroll support for companies posting employees to work in Austria.

Monthly payroll lists and tax settlements

SV contribution handling and employee registrations

Declarations to Finanzamt and insurance institutions

Fixed monthly fee, no commission

What does HR and payroll service in Austria involve?

Every employer is obliged to prepare a monthly payslip (Lohnzettel) covering the gross salary, the tax base, the calculated Lohnsteuer, the SV contributions and the net salary.

Total social insurance contributions amount to about 18.12% on the employee's side and about 21.48% on the employer's side. They cover health, pension and accident insurance.

Income tax (Lohnsteuer) is progressive and may range from 0% to 55% depending on the income level.

The employer is also obliged to submit monthly tax returns and an annual salary statement (Jahreslohnzettel).

Employer's obligations in Austria

Running HR and payroll includes:

- registration in the social insurance system and obtaining an employer number
- registering employees before they start work
- paying SV contributions within the statutory deadlines
- transferring Lohnsteuer prepayments to the Finanzamt
- keeping personnel records and working-time records

For companies posting workers from Poland, A1 and ZKO3 notifications are additionally required, and in the construction industry also obligations towards BUAK and compliance with the LSD-BG rules.

Additional salaries in Austria - 13th and 14th salary

The Austrian system provides for mandatory additional salaries, commonly referred to as the 13th and 14th salary (holiday and Christmas pay). They are paid in proportion to the period of employment and are subject to separate taxation rules.

Additional salaries have a significant impact on the total cost of employing a worker and on the level of tax and contribution burdens. Correct settlement of Sonderzahlungen is crucial for maintaining compliance with Austrian labour and tax law.

Leave and collective agreements (KV)

The minimum leave entitlement in Austria is 25 days per year and increases to 30 days after 25 years of work. Many industries are subject to collective agreements (Kollektivvertrag - KV), which set minimum wage rates, overtime supplements and employment conditions.

Incorrect application of KV rates may result in an inspection and administrative penalties.

Specifics for companies from Poland

Companies posting workers to Austria must take into account:

- the obligation to hold A1 certificates
- notification of the posting in the ZKO3 system
- minimum rates resulting from the KV agreements
- additional industry obligations (e.g. BUAK in construction)

Incorrect settlements may lead to inspections and high financial penalties.

What does our service include?

As part of HR and payroll services in Austria, we provide:

- preparation of monthly payrolls
- settlement of Lohnsteuer tax
- handling of SV contributions
- preparation of annual declarations and reports
- support in the event of inspections or official inquiries

The cooperation model is based on a fixed monthly fee agreed before the service begins.

Get a consultation on HR and payroll in Austria

If you employ workers in Austria or post staff from Poland, we will analyse your situation and determine the scope of HR and payroll obligations. Based on the number of employees, the industry and the form of employment, we will prepare a cooperation proposal.

ul. Żywiecka 155a
43-300 Bielsko-Biała

+48 515 096 602
biuro@fenixtax.pl