Austria - living and working conditions

1. How to find a job

You can find out about job vacancies from the job adverts in newspapers (e.g. in the weekend editions), through the Employment Service (Arbeitsmarktservice (AMS)), through private employment agencies and through offers posted on the Internet (recruitment bureaux). “Word of mouth” is also important: ask friends, relatives and neighbours. You can also obtain information on Austrian job vacancies through the EURES network via your country’s employment service or on the Internet.

More than 600 specially trained EURES advisers work in the employment services of all EU/EEA countries and in Switzerland to help jobseekers find a job in another EU/EEA country.

Management personnel are increasingly being recruited from other firms, either directly or through recruitment bureaux. In most cases, however, you have to apply directly to the firm in question.

Before you send off the application documents, you should first contact potential employers by telephone and/or by e-mail and ask whether the job/position advertised is still available. It is also common practice to send out applications when no job vacancy has been advertised (applying “on spec”).

If you have agreed an interview date by telephone, in person or by e-mail, it is also customary to take along a curriculum vitae, references and confirmation of past employment.
 

2. How to apply for a job

Application documents should always be written in German unless the vacancy notice stipulates another language. Send your applications by post or e-mail. It is also common practice to send applications to firms which have not advertised a vacancy (applying “on spec”).

A complete application pack includes:
A letter of application; a curriculum vitae; references and certificates (school-leaving certificate, testimonials, evidence of attendance at important work-related courses); letter(s) of recommendation; passport photograph.

The letter of application:
Be sure to find out the name of your contact person in the company (e.g. the Personnel Manager) and if possible address him or her using his or her correct title (e.g. Dear Dr Müller). Refer to the newspaper advertisement or a telephone call in your letter. Draw attention to two or three of your strongest points (professional experience, professional and personal qualifications, motivation, commitment), indicating why you are the ideal candidate for the position. Request a personal interview.

Curriculum vitae:
Your curriculum vitaeshould be brief, concise and clearly laid out, presenting the essential facts. It should preferably consist of no more than two – or even better, one – A4 sheet/s. 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 part covering your education and training.

Preprinted application forms:
If there are problem areas in your career history (e.g. previous convictions), leave the relevant boxes empty. Where you are asked to indicate the salary you would like, enter “subject to agreement”. Enclose a curriculum vitae.
 

3. Registration procedures and residence permits

Within three days of taking up your apartment, house or room in Austria, you must register with the relevant authority (registration office (Meldeamt) of the Federal Police Service (Bundespolizeidirektion) in towns and cities with a Federal Police administration; in Vienna, at the Registration Service (Meldeservice) of the appropriate municipal district offices (Magistratisches Bezirksamt); in smaller communities, at the local council offices (Gemeindeamt)).

You must bring with you: a completed residence registration form (Meldezettel), passport, birth certificate and residence registration forms for all other places of residence. You can obtain the Meldezettel from the relevant registration authorities, or on the Internet.

EU/EEA citizens/Swiss nationals and their families (with EU/EEA citizenship/Swiss citizenship) do not require a residence permit to enter Austria and take up residence; they are exempted from visa requirements and are free to settle where they please. You may stay in Austria for up to three months without any further formalities (but you must be in possession of a valid passport or identity card). If you wish to stay longer in Austria, however, you must have health insurance and sufficient funds to support yourselves and your relatives, or be able to demonstrate that you are in employment, are self-employed or are undergoing training in Austria. The authority issues a right of residence document (Anmeldebescheinigung). Citizens of EU/EEA countries may in addition apply for a Lichtbildausweis für EWR-Bürger (official identification with photo for EEA citizens). The Lichtbildausweis counts as proof of identity.
Privileged third-country nationals, i.e. dependents of EU/EEA nationals/Swiss citizens who do not themselves possess EU/EEA/Swiss citizenship, are entitled either to a permanent residence permit (Daueraufenthaltskarte) (for close relatives: spouse, children, parents, parents-in-law and grandparents) or to a family residence permit (Niederlassungsbewilligung-Angehöriger) (for the wider family: partners, other relatives – brothers, sisters, nephews, nieces, etc.). Applications may be made after entering Austria with or without a visa (there are exceptions).
The responsible authorities are: the local district administration offices (Bezirkshauptmannschaft) or, in towns and cities, the municipal offices (Magistrat).

Information on costs and documents required is available on the relevant websites.
 

4. Working time

Normal working time by law is: an eight-hour working day (working hours within a 24-hour period) and a 40-hour working week (working hours from Monday to Sunday inclusive). Collective agreements and works agreements in many industries have shortened the working week or have allowed special arrangements (hotel and catering trade, hospital nursing, etc.). A collective agreement may extend the normal working day to 10 hours if, for example, weekly working hours are spread over four consecutive days, or the overall period used to calculate working hours extends to 52 weeks and time-off in lieu is taken in periods of several days at a time (e.g. in the hotel and catering trade). For workers on call, daily working time can be extended to 12 hours.

If continuous working time amounts to more than six hours, workers must be allowed a break of at least half an hour. This break is not paid and is not counted as part of total working hours. Employees are entitled in each calendar week to an uninterrupted rest period of 36 hours (weekend break). If the weekend falls legitimately within a period of work, employees are entitled to an uninterrupted rest period of 36 hours (weekly rest period) during the week. The weekly rest period must include one whole weekday.

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 compensatory time-off has been agreed, the overtime must be remunerated financially. Extra hours are not remunerated. Extra hours are understood to mean the period between agreed part-time work (e.g. 30 hours per week) or the working time set by collective agreement (e.g. 38 hours per week) and normal working time (40 hours per week) set by law. Extra hours can be offset by time-off in lieu.

For shift work a shift roster must be established. Within a shift period, normal working time of 40 hours per week and nine hours per day may not be exceeded.

Night work is performed by anyone who works between the hours of 22.00 and 5.00. There is no legal entitlement to bonuses, but compensation is often laid down by collective agreement. Under certain conditions, night workers are entitled to additional rest periods.

The following applies to young people: normal working time is eight hours maximum, weekly working time is 40 hours maximum, and work on public holidays and Sundays is prohibited. In sectors such as hotels and catering and the health service (hospitals etc.): weekly working time may be extended to 45 hours and daily working time to nine hours. If young people work legitimately on Sunday, the following Sunday must be kept free.
In the hotel and catering trade, employment on consecutive Sundays within a period of up to 23 weeks per calendar year may be permitted.
 

5. Incomes and taxation

The average annual gross earnings of an employed worker in Austria in 2004 amounted to EUR 22 277 (median value) or EUR 25 421 (arithmetical mean). Average income is lowest in the Tyrol and highest in Vienna.

Income tax: the Income Tax Act (Einkommensteuergesetz) lists particular types of income: income from agriculture and forestry, from self-employed work, from trade and craft activities, from employment, from capital assets, from rents and leases, and so on. In Austria there is a progressive rate of income tax (0-50%). Income tax on employment is also called earnings tax. The level of income tax depends on the taxable income received in a calendar year. The calendar year is the same as the business year and comprises a period of 12 months.
Income tax on employed persons is deducted from wages or salaries at source together with social insurance contributions and is transferred by the employer to the competent offices. The tax withheld is a prepayment on the annual tax due, which is only finally settled with the annual tax assessment (Arbeitnehmerveranlagung, previously Lohnsteuerausgleich) corresponding to the taxpayer’s declaration. Various expenses can be offset against income tax, depending on the circumstances, e.g. sole breadwinner’s allowance, single parent’s allowance, children’s allowance, flat-rate allowance for commuters, maintenance allowance, special expenses (e.g. for life assurance, housing provision, housing refurbishment, special expenses for spouses and children, professional expenses e.g. for Internet, relocation, etc.), extraordinary expenses (e.g. hospital charges, expenses for medicines). The income tax declaration must be submitted, the annual tax assessment may be carried out. In many cases, as a result of the annual tax assessment, you will be given back part of the tax you paid.

Social insurance contributions have to be paid by both employees and employers (exception: accident insurance is only paid by employers). The following rates apply:
- sickness insurance: manual workers, clerical workers: 7.5%; freelance workers: 7.2%
- accident insurance: manual workers, clerical workers: 1.4%; freelance workers: 1.4%
- unemployment insurance: manual workers, clerical workers: 6%
- pension insurance: manual workers, clerical workers: 22.8%; freelance workers: 22.8%
In addition, employees pay 0.5% of their gross pay for the Chamber of Labour contribution; employees and employers each pay 0.50% for the housing construction promotion levy. There are also, where applicable, trade union contributions and church tax (contribution to a religious community, which is deducted directly from pay: 1.25% of the gross wage/salary), which is only payable by employees.

Other taxes:
Inheritance and gift tax, land tax, motor-vehicle tax (insurance tax based on engine size), value-added tax: this is paid as an indirect tax on the purchase of a product or service by the final consumer (current rates 10-20%); corporation tax: legal persons (e.g. companies) pay no income tax, but do pay corporation tax (25%); municipal tax: businesses pay municipal tax to the municipality in which the business is located (3% of the assessment basis); turnover tax: business owners whose annual turnover exceeds EUR 22 000 are liable to this tax (rate: 20%); capital gains tax; mineral oil tax, etc. Further information on the various taxes can be obtained from the Finance Office and from the Federal Ministry of Finance. All taxes are payable to the Finance Office responsible. NB: annual tax assessment, income tax notification and the payment of other taxes are tied to particular deadlines.
 

6. The social security system in this counrtry

The social security system 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.

Typical characteristics of social insurance are: 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 (once the conditions for entitlement have been fulfilled); funding comes principally from income-related insurance contributions. The principle of solidarity applies: those with higher incomes – who therefore pay higher social insurance contributions – help to fund benefits for those in less favourable circumstances – i.e. with lower incomes. Some groups (minimally employed workers etc.) are only subject to compulsory insurance in limited areas, e.g. accident insurance (see section on types of employment).

Sickness insurance (sickness, maternity, nursing care) is administered by the sickness insurance funds, accident insurance by the General Accident Insurance Institute (Allgemeine Unfallversicherungsanstalt), unemployment insurance by the Employment Service (Arbeitsmarkt Service (AMS)), pensions and insurance by the Pension Insurance Office (Pensionsversicherungsanstalt). The coverage of the sickness insurance funds is evident from the place of work (sickness insurance funds are organised regionally according to provinces (Bundesländer). Self-employed persons, farmers, railway employees, miners and civil servants have their own social insurance institutions which are independent of their place of work. All insurance bodies are devolved into provincial and to some extent district agencies and are grouped centrally in the Hauptverband der Österreichischen Sozialversicherungsträger (Association of Austrian Social Insurance Institutions).

As an employee with an employment contract and statement of terms and conditions (Dienstzettel) you are automatically covered by social insurance. Your employer takes care of your registration with the insurance institutions. The insurance contributions to be paid by employees are deducted every month from their gross salary/gross wages by their employer. Persons insured voluntarily and, for example, the self-employed, pay their own contributions and must register with the appropriate insurance bodies themselves.

In addition to social insurance, there is the system of social assistance: social assistance in Austria is intended to plug the gaps in other areas of social insurance. You can apply for social assistance to the local council office (Gemeindeamt) for your place of residence, or, in towns and cities, to the municipal office (Magistratisches Bezirksamt) (social services department).


Source: EURES