Austria: New Minimum Wages Announced for Certain Card Holders

January 5, 2021 Lucy Halse

Key Points

  • As of January 1, 2021, new minimum wages apply for EU Blue Card and Red-White-Red Card holders
  • Minimum wage levels increase based on specific category
  • Minimum wage requirements only apply to new applications submitted on January 1, 2021 or later
  • Wage requirements do not apply to existing card holders or pending applications as of January 1, 2021
  • Employers must compensate their employees in EUR and in 14 installments each year
  • Salaries must also meet collective bargaining agreement rates, if applicable
  • New monthly income requirements also apply to dependents

Overview

Effective January 1, 2021, minimum salary levels have increased for some Red-White-Red Card holders and EU Blue Card Holders.

What are the Changes?

Minimum salary levels have increased nationwide for the following categories:

  • Red-White-Red Card (key employee, over 30): EUR 3,300 per month
  • Red-White-Red Card (key employee, under 30): EUR 2,775 per month
  • Red-White-Red Card (graduate from an Austrian university): EUR 2,497.50 per month
  • EU Blue Card: EUR 4,684.22 per month

Who is Affected?

The changes apply to applicants for new permits in the categories above who are applying on or after January 1, 2021. The new minimum wage requirements do not affect foreign nationals who already held a Red-White-Red Card or an EU Blue Card before January 1, 2021. Additionally, applications in the affected categories that are pending as of January 1, 2021 are not subject to the new minimum wage levels.

Some categories are not affected by the new minimum wage requirements, including Short-Term Work Permits, Short-Term Secondment Permits, the Red-White-Red Card for professionals in shortage occupations, and EU Intracompany Transferee (ICT) permits. Applicants and permit holders in those categories must meet the salary rate for the position’s applicable collective bargaining agreement if applicable. Salary rates vary based on the industry and the worker’s experience and qualifications.

Minimum wage requirements also apply to dependents. Typically, an average income of EUR 1,578.36 per month is required for a married couple. The monthly income requirement increases by EUR 154.37 for every dependent child.

What Should Employers and Applicants Know?

Employers must pay their employees in 14 payments each year. The mandate also applies to local hire permits.

Employers must compensate their foreign nationals in EUR regardless of exchange rate fluctuations and payroll location.


Content in this publication is not intended as legal advice, nor should it be relied on as such. For additional information on the issues discussed, consult an Envoy-affiliated attorney or another qualified professional.

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