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Company Formation Austria



New Employment Measures to Help Austrian Companies and Workers

Written by: Editor

The Austrian government has recently issued several amendments to the Employment Act meant to enhance the country as a business location. While protecting employees, the government also wants to encourage Austrian companies to hire more personnel. The research premium was also increased in order to boost investments in the innovation industry. Our company registration agents in Austria can assist foreign investors who want to set up companies here.

Austria to offer an employment bonus and a higher research premium

The government has conceived a package with the new measures in order to offer to all companies in Austria the possibility of choosing what is best for them. Among these, some businesses are inclined in investing more in research, therefore these can take advantage of the new increased premium in the research and development sector which is now set at 14%. The new rate will be implemented starting with 2018, the 12% premium remaining in place for this year.

Another measure is the auxiliary wage costs reduction which will be offered for Austrian companies creating new jobs. The funds set aside for this project rise to 1 million euros. Starting with this year’s month of July, companies creating new work places will be reimbursed 50% of the salaries of the new employees for the following 3 years.

Our company registration consultants in Austria can offer more information on the taxation system in this country. They can also inform those interested in the incentives offered to open a company in Austria.

Employee protection will also be enhanced

A part of this set of measures refers to an enhanced employee protection, considering the large number of foreign workers in Austria. For this purpose, the government plans of reducing the burden related to red tape and bureaucracy employees must go through every time they interact with the authorities. Austrian companies will also benefit from these measures in their quality of employers. For this purpose, the Employee Protection Act, the Work Inspection Law, the Working Time Law and the Law of Rest Periods will be amended during the first half of this year.

For full information on the new measures to enter into effect starting this year, please contact our Austrian company formation representatives.



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