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> GOVERNANCE - home > Employment protection legislation database - EPLex > Austria

Austria - Severance pay and redundancy payment


Severance pay and redundancy payment - Austria - 2016    

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Severance pay:
  • tenure ≥ 6 months: 0 month(s)
  • tenure ≥ 9 months: 0 month(s)
  • tenure ≥ 1 year: 0 month(s)
  • tenure ≥ 2 years: 0 month(s)
  • tenure ≥ 4 years: 2 month(s)
  • tenure ≥ 5 years: 3 month(s)
  • tenure ≥ 10 years: 4 month(s)
  • tenure ≥ 20 years: 9 month(s)
Redundancy payment:
Remarks:
  • Same as severance pay (no specific provision for economic dismissal)
  • tenure ≥ 6 months: 0 month(s)
  • tenure ≥ 9 months: 0 month(s)
  • tenure ≥ 1 year: 0 month(s)
  • tenure ≥ 2 years: 0 month(s)
  • tenure ≥ 4 years: 2 month(s)
  • tenure ≥ 5 years: 3 month(s)
  • tenure ≥ 10 years: 4 month(s)
  • tenure ≥ 20 years: 9 month(s)

Notes / Remarks
The above-mentioned severance pay/redundancy payment are only relevant to worker under an employment contracts concluded before 1 January 2003.

A new severance pay scheme was introduced by Betriebliches Mitarbeitervorsorgegesetz of 2002, in force since 1 January 2003.

Under this new scheme which applies to all employment contracts concluded after 1 January 2003, the employer pays pre-defined contributions (1.53 % of the monthly gross wages) to an employee income provision fund. Upon termination of employment (except in case of summary dismissal), any employee in respect of which at least 36 monthly contributions were made (by one or more employers) can chose between receiving severance payment from the fund or saving the entitlement towards a future pension.

If the employee quits or if job tenure is shorter than three years, no severance payment will be made but the balance of the account is carried over to the next employer.

Note: The original name of the law was "Betriebliches Mitarbeitervorsorgegesetz". However, it was modified in 2007 in order to include self-employed workers and replaced with "Betriebliches Mitarbeiter and Selbständigenvorsorgegesetz" (in force since 2008).