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WORKING IN AUSTRIA

First steps: What to do when searching for a new job in Austria

Whether you have just arrived in Austria or have worked here before but are now unemployed, this is how you should start your job search.

Published: 17 January 2024 16:05 CET
Updated: 4 April 2024 14:11 CEST
First steps: What to do when searching for a new job in Austria
What are the first steps to find a job in Austria? Photo: Pexels from Pixabay

Austria is known for its welfare or social system, and even people who do not have a job can receive assistance – but the full entitlement depends on factors such as previous work in the country, for example. 

If you are moving to Austria or have lost your job, there are tools you can use to help you get into the labour market again – especially with the help of the Austrian Public Employment Service (AMS). Here’s what you need to know.

Registering as unemployed

The first step is registering as an unemployed job seeker with the AMS. It’s not a mandatory step, but the AMS can give you professional counselling from a personal advisor. You can also be recommended courses and get job adverts that fit your profile. 

A person can register as an unemployed job seeker with the AMS regardless of any entitlement to a benefit from the unemployment insurance scheme, so even if you have just arrived in Austria. Here’s a list of the regional offices of the AMS.

READ ALSO: Unemployment benefits in Austria: Who is eligible and how much can you get?

If you are entitled to unemployment benefits (for that, you need to have contributed to the social system in Austria), then you must register with the AMS by the first day of unemployment. If you register online before the start of unemployment, you have ten days after the start of unemployment to confirm the registration at an AMS office in person. 

Even if you are not at first entitled to benefits from the unemployment insurance scheme, some circumstances may entitle you to several forms of help from the agency. 

This is why it is recommended that you reach out to the AMS regardless of your situation.

AMS’s chatbot

Austria’s AMS also recently launched a new AI bot that usesChatGPT technology – and information from AMS – to help people looking for jobs and training in Austria, as The Local reported.

The bot uses ChatGTP knowledge and AMS’s sources to help users. It can also ask further questions to get specifics on each case, creating a dialogue and exchange of information.

The bot can give answers on training, salary, careers, visas, and more to anyone asking questions. It also provides links to the pages with the source information – all in whichever language you choose to interact with it. 

READ ALSO: How useful is Austria’s new AI tool for foreign job-seekers?

Looking for jobs

Besides the assistance of your advisor at the AMS, you can also use the agency’s job search tool to find employment. Several positions are advertised there, especially for service and trade jobs. It’s possible to narrow down the search based on work hours, place of work and state, among others.

READ ALSO: Six official websites to know if you’re planning to work in Austria

Besides the official site, people in Austria also use other ways of finding jobs online, including websites like LinkedIn and even posts on FB Groups (though be careful with false advertisements if you are in doubt when it comes to employment and work contracts, you can always reach out to your local Chamber of Labour).

In Austria, two sites are also popular among job seekers: Karriere.at and Xing.com. You can also use sites with classified ads such as Der Standard or Willhaben, for example. The Local has a page with English-language jobs in Austria as well.

It’s often common to find jobs through personal contacts in Austria, where the “friendship culture” is prevalent. 

READ ALSO: What is the ‘friendship economy’ in Austria and how does it work?

Even the official government website says, “Personal contacts should also not be ignored when it comes to successful job placement. It can be very helpful to ask around among family, friends and acquaintances for vacancies.

“The more people who know about the job search, the greater the chance of success”, it added.

You will also need to prepare a CV and, depending on the job, even a motivational letter – your AMS advisor can typically help adapt and write both documents. 

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WORKING IN AUSTRIA

Why are people in Austria paying more taxes despite federal reforms?

Workers in Austria are still among those with the highest tax burdens in the world, with the taxes and contributions taking more than 40 percent of wages even as the country introduced sweeping tax reforms.

Published: 26 April 2024 12:21 CEST
Why are people in Austria paying more taxes despite federal reforms?

It’s often said that Austria is a country with high quality of living and high taxes, but a new OECD study shows just how high the tax burden is here compared to other OECD countries.

According to the report, Austria has the third-highest tax burden on workers and the so-called “tax wedge”, how much of a worker’s wage is taken by the government,  increased as well.

According to the OECD, in most countries, the increase in labour taxation was primarily driven by increases in personal income tax.

This is because nominal wages increased in 37 out of 38 OECD countries as inflation remained above historic levels. However, since most of these countries do not have automatic indexation of tax systems, high inflation tends to increase workers’ tax liabilities by pushing them into higher tax brackets. 

However, Austria’s federal tax reforms removed this in the country in 2023. This means that once inflation rises, the tax brackets that define how much taxes you will pay on your income will also rise – and they have risen in 2023 and in 2024 since the change. 

The measure was known as the “end of the cold progression” in Austria and should have protected workers’ incomes from inflation losses.

READ ALSO: The tax benefits that parents and families receive in Austria

What is the tax ‘wedge’?

The OECD defines a tax wedge as “income tax plus employee and employer social security contributions, minus cash benefits.” 

In other words, if an employer has a labour cost of €100, how much will they actually see in their pockets, and how much of this goes to the state? According to the organisation, the percentage is the tax wedge.

In Austria, €100 earned by a single employee without children was taxed at an average of €47.2 last year. The amount was only smaller than in Germany (47.9 percent) and Belgium (52.7 percent) and it rose compared to the previous year when it was still at 46.9 percent.

The average of the 38 OECD countries was 34.8 percent.

Married single-earner couples with two children also have high tax burdens, with a tax wedge of 32.8 percent (OECD average: 25.7 percent), which is the eleventh-highest tax and contribution burden within the OECD for this group (2022: 13th place). For married dual-earner couples, the wedge was 40.6 percent.

The tax wedge for individuals or households with children is generally lower than those without children, as many OECD countries grant households with children a tax advantage or cash benefits.

READ ALSO: Why it’s worth filling in your annual tax return in Austria

Why is Austria’s tax burden higher this year?

Despite the tax reform presented by the government, Austria’s tax wedge has increased compared to the year before. 

The reason is the relief granted in Austria in 2022 in the form of one-off state payments. With the rising cost of living, the federal government released several temporary measures to help people in the country cushion the effects, including the popular €500 Klimabonus payment every person who had been a resident of Austria for at least six months was entitled to. 

These payments and increases in family allowances reduced the tax burden in 2022 – but they no longer exist or were drastically cut in 2023. Because of that, the tax burden is rising again. 

“The abolition of cold progression and the other measures have merely prevented the tax burden from rising more sharply,” Wifo economist Margit Schratzenstaller told Der Standard.

The report said the increased tax issues show that there is still a need for action. Compared to other industrialised countries, Austria’s tax burden on work for a single person without children is ten percentage points higher. Of course, the expert noted, the fact that many industrialised countries have a different social system with fewer publicly funded benefits also plays a role here. However, labour is also expensive in Austria compared to the EU average.

READ ALSO: What foreign residents in Austria should know about taxes

“The fact that the tax burden on the middle classes has increased is due to the government’s failure. Instead of structural relief, there have been one-off payments that have evaporated,” said Lukas Sustala, head of Neos-Lab, the think tank of the liberal opposition party.

NEOS representatives have urgently called for a ‘comprehensive tax reform’ to alleviate the heavy labour burden, with a significant reduction in non-wage labour costs, according to an ORF report.

In addition, NEOS proposes the creation of ‘tax incentives for full-time work’ – including a full-time bonus and tax exemption for overtime pay. Simultaneously, NEOS aims to eliminate ‘part-time incentives of any kind’, offering a potential boost to the economy and workers’ incomes.

Economist Schratzenstaller also recommends action: She suggests reducing social insurance contributions, for example, for health insurance companies. However, it’s important to note that intervening in this area could affect the largely autonomous financing of Austria’s healthcare system, which is funded mainly through workers’ and companies’ payments via social insurance contributions. 

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