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The Republic of Austria is an inland country located in Central Europe, which borders Liechtenstein and Switzerland to the west, Italy and Slovenia to the south, Slovakia and Hungary to the east, Germany and the Czech Republic to the north. The population of the country is just over 9 million inhabitants. Austria’s unemployment rate is 5.7% yet there is interest from thousands of Eastern Europeans looking for better working conditions and pay. Let’s take a closer look at the characteristics of looking for a job in Austria, what salary you could expect and what costs to foresee in order to have a comfortable lifestyle in the country.
Minimum wage
Unlike most countries in the European Union, Austria does not have a regulated minimum wage. Pay is determined with the help of a collective agreement. In 2017, a law was passed that protects the labor rights of foreigners and employers are committed to ensuring equal rights and working conditions as in the local population.
According to a study by the Austrian authorities, the minimum wage in the country is 1,500 euros, which compared to Poland and the Czech Republic is higher and may vary depending on the sector in economics.
Average salary
Most of the foreigners arrive in the country to receive higher pay, with employers willing to pay for a qualified employee from 4,000 to 5,500 euros. It is important to note that after tax deduction, the net salary is from 2,100 to 2,900 euros, which corresponds to the average salary in other Eastern European countries. Annually salaries are increased by 2%, in addition, qualified employees receive 13 and 14 salaries. The most sought-after employees are in the medical staff, engineers, builders and in the care of the elderly.
Salaries by profession in Austria
The salary level of foreign employees depends directly on qualifications. Regardless of nationality, an unskilled worker can receive an average of 1,200 euros per month. If you have education, work experience and high qualifications, you can count on a high salary. In the public sector, pay is 7-8% higher than the private sector. In addition, the level of remuneration largely depends on the city and region of work. Vienna and other major cities have the highest wages. It is here that even an unskilled worker can easily secure an income of over a thousand euros per month.
Let’s look at a few professions and pay in euros:
§ doctors – from 3000
§ engineers and builders – from 2500
§ architects – from 2500
§ bank employees and managers – from 2000
§ IT specialists – from 2200
§ project leaders – from 3500
§ service staff – from 1200-1300
Payroll taxes in Austria
The long-term residence and employment of foreigners in the country obliges them to pay their taxes and state fees. It is necessary to submit tax documents when a profit is made more than 11,000 euros per year. The rate varies from 25 to 55 % depending on the income received.
Also, taxes are deducted from the salary for payment of:
§ insurance policy 7,6 %
§ Pension Fund 22 %
§ Fund Unemployment 6 %
Corporate tax for legal entities is 27%
Foreigners are also obliged to pay installments in case of the purchase of real estate and cars.
Monthly cost of living in Austria
A comfortable lifestyle includes monthly costs for accommodation and food, and everyone should keep in mind that to allocate 700 euros per month. Housing is the biggest expense as for a one-room apartment in the suburbs you will pay 400 euros per month. Discounts on rental prices you could get when you live more than 3 years in Austria. For utilities, another 100 – 200 euros per month are allocated, with cable internet included in the price. For food, costs range from 200 to 250 euros per person per month. To use a local mobile operator you need to pay for a month a subscription of 15-20 euros.