SHARE
COPY LINK
For members

WORKING IN AUSTRIA

Four steps to take immediately after losing your job in Austria

Losing a job can be a nightmare for a foreigner in Austria. Here’s what you need to do to protect yourself and get back on track as soon as possible.

Four steps to take immediately after losing your job in Austria
Woman signing document after loosing her job. Photo by Sora Shimazaki: https://www.pexels.com/photo/focused-woman-writing-in-clipboard-while-hiring-candidate-5668869/

Losing a job in Austria can involve significant challenges, especially for foreigners.

You might worry about whether your residence status is at risk, how difficult it will be to find another position, and how you will support yourself while searching for a new job.

However, in Austria, you can take certain steps to protect yourself until you find your next opportunity.

Know your rights and negotiate your terms

If you get laid off, you have rights you should know.

If the contract is ended by mutual agreement (Einvernehmliche Auflösung), which your employer may offer even if the actual reason is dismissal, no notice period is required.

The contract can be terminated verbally or in writing, though written termination is recommended.

This type of termination allows you to negotiate the notice period and conditions with your employer, and you are expected to express your wishes. 

If you instead are dismissed (Kündigung), which refers to your employer terminating your employment without a specific reason, they need to follow certain deadlines and notice periods.

White-collar workers should receive at least six weeks’ notice in Austria. Meanwhile, blue-collar workers are only required to get at least two weeks’ notice, periods that increase the longer you have worked for an employer.

During the notice time, you can either continue working or be placed on what is known as gardening leave, where you do not have to work but are paid as if you were still working.

Your employer can also terminate your contract immediately (Vorzeitige Entlassung) in cases of very serious violations, but this only happens in special circumstances, such as violating company rules.

If this happens, the employer will  need to calculate a final financial settlement, including any wages until the end of the employment relationship, unused holiday days and over-hours, etc.

In general, what is important to also remember is to check on remaining holiday days and unused overtime to make sure you receive appropriate compensation.

Consulting the Chamber of Labour (Arbeiterkammer) or a work council (Betriebsrat) can help you understand your rights. For example, special rules apply to certain workers, such as parents, pregnant women, and those under 18, so it is a good idea to seek advice from your works council or union if this might affect you.

READ MORE: How to find a job in Austria in three months

Get all the important documents from your employer

Once you get laid off, it is essential to ensure that your company gives you all the necessary documents to move forward.

You are entitled to documents such as a Certificate of Employment (Arbeitsbescheinigung) and a Confirmation of Deregistration with the Health Insurance Provider (Bestätigung über die Abmeldung beim Krankenversicherungsträger).

It is also important to obtain a Confirmation of Work and Salary (Arbeits—und Entgeltbestätigung) and an Employment Reference (Arbeitszeugnis) for future job opportunities.

Sign up at AMS and get your unemployment benefits

Austria has strict rules regarding signing up at the Public Employment Service, AMS, after losing your job.

You must register as unemployed with the AMS no later than the first day of your unemployment. If you register later, gaps in your benefits, as well as in your health and pension insurance, may occur.

These gaps can also happen if you do not give AMS all the necessary information for your unemployment registration.

The unemployment benefits are calculated based on your previous income and personal situation.

Usually, you receive about 55 per cent of your previous net income. This amount can be a little bit adjusted based on your personal circumstances, such as if you have children or a spouse financially depending on you, which may entitle you to some extra payments.

Depending on your residence permit, you might not be able to receive long-term unemployment benefits. However, most employees can get unemployment insurance, which covers part of their previous salary while they search for a new job.

It can be a good idea to check in with AMS to get the details about your specific situation.

It is also important to know that if you receive unemployment benefits, you cannot leave the country, even for vacation. If you do need to travel, you must inform AMS in advance, and you will not receive benefits while you are away.

READ ALSO: Should I register with Austria’s unemployment agency AMS if I’m out of work?

Inform the immigration office 

If you are on a residence permit linked to your job, such as a Blue Card or any work visa, you must inform the immigration office, MA 35, about your situation as soon as possible.

Some permits require you to maintain employment to keep your visa valid. Reporting your job loss helps you avoid potential issues with your residence status and allows you to apply for a different type of permit if necessary.

If you, for example, have a Red-White-Red Card for highly qualified workers in shortage occupations and you lose your job within the first two years of residency in Austria, you must inform the immigration office (MA 35 in Vienna or the local Bezirkshauptmannschaft in other parts o the country) and apply for a new residence permit to avoid losing your right to live and work in the country.

In general, it is a good idea to ask the immigration office about your specific options with your current visa.

READ NEXT: What you should do if you lose your residence permit in Austria

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

COST OF LIVING

What is considered a good salary in Vienna?

Vienna is known as the world's most liveable city and a popular place to move for those looking for jobs. Here is what actually counts as a good salary in the Austrian capital.

What is considered a good salary in Vienna?

Austria’s capital is a hub for many different companies, both local and international ones.

In Vienna, you can find a wide range of job opportunities, such as in IT, healthcare, finance, tourism, engineering, biotechnology, logistics, and creative industries.

Some of the largest and most notable employers in Vienna are the City of Vienna, the United Nations, the General Hospital, Erste Bank, Wien Energie, and ÖBB. 

Vienna is known for offering some of the highest salaries in the country, but the numbers can vary significantly depending on factors such as field, experience, and employer.

However, while looking at salary reports and living costs, it is possible to understand what is considered a good salary and what is not.

What can you expect to earn in Vienna?

According to Stepstone’s analysis, released at the start of 2024 and based on findings from the end of 2023, Vienna once again leads the cities and provinces in terms of the highest median income. 

In 2023, the median income in Vienna was €56,880 gross per year, while in Tyrol and Carinthia, it was about €10,000 lower.

Burgenland, with a median salary of €50,750, and Upper Austria, with €49,667, were positioned in the middle of the range.

While looking at the average salary in the city, current figures show that it is €2,532 after taxes.

In Vienna, you are considered to have a high income if you earn between €3,500 and €5,000 before taxes every month. 

With this income, you can generally expect to enjoy a high quality of life while living in the capital.

Vienna has the highest median income in Austria. Photo by Ibrahim Boran on Unsplash

Living costs in the capital

The latest figures show that a single person’s monthly costs in Vienna are estimated to reach €1,055 without rent.

The average rent in the city is €1,038 for a one-bedroom apartment in the city centre and €757 if you live outside the centre.

A meal at one of the cheaper restaurants and a drink will cost you around €16.50, while a three-course meal for two at a mid-range restaurant costs about €70.

A monthly public transport pass costs €51, while a yearly pass is €365. These are among Europe’s most affordable public transport prices for a major city.

When you go to the supermarkets, a litre of regular milk typically costs €1.47, a loaf of fresh white bread (500g) is about €2.66, and a kilogram of white rice is usually €2.36.

READ ALSO: IN NUMBERS: How much does it cost to live in Vienna in 2024?

Average and median salary in Austria

According to Stepstone’s analysis, the average gross annual salary for full-time employees in Austria in 2023 was €57,731. Meanwhile, the median gross income was €50,633, about €7,000 lower than the average salary.

Regarding salary differences, the gender pay gap in Austria, or the difference between men’s and women’s earnings, is 15.5 percent when looking at annual gross salaries.

In 2023, a full-time working woman earned an average of €45,500 gross per year, which is €8,340 less than the average earnings of a man.

This is based on the “unadjusted gender pay gap,” which includes characteristic differences such as occupational subgroup, industry, company size, professional experience, and educational qualification. 

READ MORE: Five well-paid jobs in Austria that nobody wants to do

What is left after taxes?

Knowing how the tax rates work is important for determining how much money you will be able to keep in your pocket every month.

Here are the current tax rates in Austria; 

  • If you earn under €12,816, you do not pay any taxes.
  • For earnings above €12,816, the tax rate is 20 percent.
  • For income ranging from €20,818 to €34,513, the tax rate is 30 percent.
  • For earnings between €34,513 and €66,612, the tax rate is 41 percent.
  • If you have an income between €66,612 and €99,266, the tax rate is 48 percent.
  • For salaries ranging from €99,266 to €1,000,000, the tax rate is 50 percent.
  • Earnings exceeding €1,000,000 are taxed at 55 percent.

Worth keeping in mind is that when you work in Austria, all your earnings are not highly taxed.

Special payments, such as the extra salaries you receive at Christmas or before the summer holidays (known as the 13th and 14th salaries), as well as bonuses, are taxed at a lower rate of around 6 percent.

Plus, the first €620 of these special payments are usually tax-free.

READ NEXT: IN NUMBERS: What are Austria’s most expensive cities to live in?

SHOW COMMENTS