Newsletter registration

By using our website, you are agreeing to cookies being stored and Google Analytics being used on your device in order to offer the best possible service. You can find more information on thishere.
Austria.
Dynamic Business Location.

Weekly Tip 8 #LocationAustria: Labor Laws – Severance pay

© ABA

All employees whose employment contracts in Austria took effect after January 1, 2003 are entitled by law to severance pay (“Abfertigung”), even if they resign.

This right to severance pay should not be mistaken for the negotiated termination benefits (“Abfindung”) employees receive in other countries.

Severance pay for all employees - even if they resign

Starting in the second month of an employment relationship, employers in Austria are required to pay 1.53% of the employee’s gross salary including bonus payments each month into a severance payment fund (”Abfertigungskasse“). This fund manages a severance pay account for each employee.

If the employment relationship is terminated, the employee has several possibilities in addition to (after three years of employment) receiving the accrued severance pay contributions. For example, the employee can decide to reinvest in the same pension insurance fund, or transfer the sum to which he or she is entitled to the pension insurance fund of the new employer.

For more tips also check:

Share on Facebook Share on Facebook Share on Twitter Share on Twitter

Testimonials

Events

Meet us at events, seminars and trade shows - worldwide.

  • Meet us @ Plast/Ipack Ima

    29. - 30.05.2018, Milano, Italia

  • Austrian Economic Mission in Baltic States

    30.05.2018, Vilnius, Lithuania

Austria Map

Find the perfect location for your company

Vienna is the driving force for innovations in our company,
and one of the growth drivers.

Ottobock Austria

Logo
More testimonials

news from the business location Austria

In May Austria is THE startup hotspot

In their role as speakers, Apple co-founder Steve Wozniak, Angie Jones of Twitter and Microsoft AI expert Joseph Sirosh inspired an audience of 8,000 people attending the WeAreDevelopers Conference in Vienna in the middle of May.

Headquarters Cluster: New Impetus from Digitalization

Some 380 regional corporate headquarters are based in Austria. This is complemented by hundreds of Austrian companies which have emerged as global headquarters within the context of their internationalization. As a result, the Vienna metropolitan area ranks among the leading headquarters locations in Europe.

More news All blog posts