Remuneration

Remuneration refers to all types of monetary payments and payments in kind which the employer pays the employee for providing their services e.g. 

• basic wage
• special payments
• overtime bonus
• allowances and supplements
• bonuses, private use of the company car
• fees

Expense allowances (e.g. mileage allowance, per diems, travel expenses) are not considered remuneration.

Remuneration may be based on the time, piecework or performance-oriented remuneration system, or alternatively in the form of profit sharing. In principle, remuneration must also continue to be paid in case of leave, inability to attend work (sickness, care leave) as well as on public holidays (public holiday pay).

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  Amount of the remuneration

  For most sectors of industry, the collective bargaining agreement provides for a minimum wage in the salary tables. Higher remuneration (‘actual wage’) can be agreed.

  White-collar employees receive a monthly wage, while blue-collar employees generally receive hourly wages. Apprentices are entitled to apprenticeship remuneration.

  The scope of a collective agreement can be extended with a statute. This is an ordinance issued by the Federal Unification Office.

  For industries for which no collective agreement can be concluded, the minimum wage tariff contains regulations on minimum pay and minimum amounts for cost reimbursement. The federal office of conciliation (Bundeseignungsamt) sets the minimum wage tariff.

  If no collective agreement is in place, the employer is liable to pay the employee an appropriate or local rate remuneration. The remuneration will vary depending on many factors, such as qualifications, professional experience, industry or company size.

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  Payment date of the remuneration

  Employers must pay the monthly salary to white-collar employees in two partial amounts by no later than the 15th and the last day of every month. However, an agreement to pay the total monthly salary at the end of the month may be reached. This is also stipulated in most collective bargaining agreements.

  The hourly wages of blue-collar employees are essentially payable at the end of every calendar week. But many collective bargaining agreements contain different rules.

  By law, claims for remuneration and wages under labor law (including, in particular, claims for current salary, special payments, severance pay) become time-barred within three years from the due date, unless a shorter limitation period is agreed in the collective agreement or employment contract.

  It should be noted whether the applicable collective agreement provides for short expiry periods (e.g. in the duration of two months) for the assertion of labour law claims. Such an expiry period can also be agreed in the employment contract, provided that legal of collective agreement provisions are not violated. 

  The expiry of current statutory, collective bargaining and ccontractual limitation and expiry periods concerning claims arising from the employment relationship that employees have already acquired at the beginning of a leave of absence for care, a leave of absence for the care of a sick close relative, a family hospice leave and a leave of absence for care shall remain suspended until the expiry of two weeks after the end of the respective leave of absence. 

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  Special payments

  Employees are essentially only entitled to special payments if this is provided for in the relevant collective bargaining agreement. Most collective bargaining agreements provide for holiday pay and Christmas remuneration (‘13th and 14th monthly salary’).

It is the task of payroll accounting to transmit the annual wage slip to the tax office and to submit the monthly contribution report.

Wage and social dumping measures are intended to protect the level of labor law in Austria.

Equal treatment in the workplace is also important in determinig remuneration. The income report is a measure that aims to identify differences in income between men and women in the company.

Since 2021, companies have been able to provide their employees with a public transport ticket.

Further links

• Remuneration (→ BMASGPK)^{German text}
• Correct classification: items of note (→ ÖGK)^{German text}
• Online collective bargaining agreement database (→ ÖGB)^{German text}
• Online collective bargaining agreement database (→ WKO)^{German text}
• Remuneration (→ SV)^{German text}
• Online wage calculator (→ BKA)^{German text}
• ‘Benefits in kind - staff residence’ calculation programme (→ BMF)^{German text}
• living and working conditions in the EU member states (→ EURES)