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.
Where Your Profits Grow Sky High.

Weekly Tip 8 #LocationAustria: Labor Laws – Severance pay

gehaltsverhandlungen © 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 Share on Linkedin Share on Linkedin

Testimonials

Events

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

  • BIOMEDevice Boston 2020

    16. - 17.09.2020, Boston, USA

  • Festival of Enterprise London Event

    21. / 22.10.2020, London, UK

Austria Map

Find the perfect location for your company

Austria stands out due to its long-term reliable and stable conditions. These features are particularly important for a research-based company such as Boehringer Ingelheim. Furthermore, Vienna is a city with a good research infrastructure and a high quality of life, and is thus also an interesting place for highly qualified employees from Austria and abroad.

Boehringer Ingelheim

Logo
More testimonials

news from the business location Austria

Top Score for Lockdown – Austria convinces in current Deloitte entrepreneur survey with well thought out Covid-19 measures

Austria convinces in current Deloitte survey and gets top score for well thought out Covid-19 measures.

Concerning Facebook and LinkedIn: Austrian companies in the social media jungle

A growing number of companies are relying on social media to inform customers, open up new target groups and identify suitable employees. Firms are increasingly investing in Facebook and other social media as each year passes, However, at the same time the continuous further development and establishment of networks are also leading to uncertainties about the right way of handling these platforms.

More news All blog posts