Employees receive remuneration for the services specified in their contract of employment. The payment comprises of salaries, wages and apprentices’ compensation.
The amount of remuneration is governed by laws, collective agreements and/or internal agreements; it also depends individual factors such as age, qualifications, working hours, assignments to duties (position), etc.
Collective agreements are written agreements which regulate, for instance, remuneration, working hours and working conditions. Negotiations are conducted in Collective agreements between employer representatives (e.g. Chamber of Commerce) and employee representatives (e.g. unions).
Works agreements are written agreements between the works council and employers.
Different industries have minimum wage agreements. The union and company representatives negotiate the minimum wages.
In most cases remuneration is transferred to a salary/checking account on the last day of the month or on the first day of the following working month. In some cases, workers are paid their wages weekly by cash or check.
In most instances, remuneration, if governed by a collective agreement and/or works agreement, is paid 14 times a year: twelve monthly salary payments plus one month’s pay in the form of a Christmas bonus and one month’s holiday bonus (known as special payments).
Taxes, social security contributions, Chamber of Labor allowances and other deductions (e.g. union contributions) are deducted in the case of employees from gross pay and withheld by the employer, who then transfers them to the relevant institutions (Tax Office, social security, Chamber of Labor etc.
Principally, with their pay each month, employees usually receive a written statement of remuneration, their payslip, which contains a precise breakdown of deductions (taxes, social security, legally required and voluntary contributions, e.g. trade union dues).
Free employees are paid according to the duration of work. There is no entitlement to special payments without a corresponding agreement. If there is written contract, freelance employees are also entitled to a service slip. Taxes are to be taken care of by Freelance employees. Social security contributions are transferred from employers to the social insurance institution or to the health insurance company. Freelance employees are members of the Chamber of Labor and pay the chamber of Labor Levy.
For business entrepreneurs/contractor, the result of the service (the work) is crucial. The remuneration is usually only paid after the contract for the work has been fulfilled. Contract wages and special payments are not entitled for contractors. Taxes and social security contributions have to be paid by contractors themselves.
Free legal advice is available from chambers of labor, unions and the Chamber of Commerce (responsible for the self-employed)
TheWorking Time Act (Arbeitszeitgesetz) applies to almost all private-sector employees over the age of 18. For young people and defined groups (e.g. drivers of motor vehicles) separate working time provisions apply.
Normal working time is:
-an 8-hour working day (working hours within a 24-hour period);
-a 40-hour working week (working hours from Monday to Sunday inclusive).
Collective agreements in many industries have shortened the working week, e.g. to 38 hours.
As of September 1, 2018, new maximum limits of 12 hours a day and 60 hours a week as well as the average of 48 hours per week in a 17-week observation period apply. However, the new maximum limit has yet been considered in many collective agreements and company agreements.
Different working time agreements apply to specific sectors such as trade, hotel and hospitality and tourism.
Breaks and rest periods; entitled half an hour if you work six hours or more. This break is unpaid and is not included in the working time. After the end of the daily working hours, there is an uninterrupted rest period of at least eleven hours. The weekly rest period is regulated in the Labor Restitution Act. On weekdays, you are entitled to an uninterrupted rest period of 36 hours.
Part time jobs; Part-time employees may not be disadvantaged due to the part-time work in comparison to full-time employees.
As additional work is referred to those working time which is between the contracted (e.g. 25 hours) and the collective agreement reduced working hours (e.g. 38 hours) or the legal standard working time. There is a statutory surcharge of 25% for overtime. Nevertheless, you will only receive this surcharge if you do not reduce the additional hours within the quarter (or within another period that is 3 months) via a time compensation.
Overtime occurs when normal working hours are exceeded. Overtime is to be compensated with a surcharge in cash or time credit (50% surcharge or 1.5 hours of time compensation per overtime worked) according the Working Hours Act.
In the case of shift work, the workplace is occupied by various employees over a certain period. Under certain conditions, shifts can last up to 12 hours.
Flexible working hours; This is within an agreed framework, the start and the end of daily normal working hours can be determined by a flextime arrangement. The employee is present in the company within the specified “block or core period”. The flextime must be set out in a company agreement or a flextime agreement.
Night work/Sunday and holiday work; is permitted for men and women alike, a night work ban as well as a Sunday and holiday work ban is only available for pregnant women and nursing mothers as well as for young people under the age of 18. There are exceptions, for example, in the hotel and hospitality industry or in hospitals.
Further information can be found at: http://ec.europa.eu/eures/main.jsp?catId=8392&acro=living&lang=de&parentId=7768&c ountryId=AT&living
Leave (annual leave, parental leave etc)
Employees and apprentices have a minimum entitlement to paid annual leave of five weeks in each working year. In terms of working days, you are entitled to 30 days’ leave or 25 working days, which includes Saturdays, in each working year. The working year starts on the day the employee joins the company.
In addition to their monthly pay, employees in Austria may also receive a holiday bonus, known as the 14th monthly pay cheque or holiday money, if this is included in the collective agreement or their employment contract.
In the first 6 months of your first year of employment, your leave entitlement is calculated on a pro rata basis. From the start of the 7th month, you receive the full leave entitlement. From the second year of employment, the full leave entitlement accrues from the beginning of the working year.
Illness and Continued payment: The continued payment of wages is in the medical case of accidents at work and occupational diseases among others, make sure your payment will continue to be paid by the company. You will receive sick pay from your health insurance provider after the continued payment of wages.
Free employees receive sick pay from the fourth day of sick leave.
Maternity Protection for pregnant women usually begins eight weeks before the birth and eight weeks after the birth (absolute ban of employment). You will receive maternity allowance if you are employed or only if you have health insurance. Free female employees also receive maternity allowance.
Parental leave; Self-employed mothers and fathers are entitled to parental leave. This means one is released from work, but without receiving remuneration. Can be taken until the child’s second year of life if you live with the child in the same household. During this time, if requirements are met, childcare allowance can be drawn.
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