Hourly minimum compensation

Austria's hourly minimum wage, known as the Mindestlohn, is currently €12.27 per hour as of January 1, 2025. This statutory floor applies to all employees aged 18 and over working in Austria, regardless of employment type or sector, with limited exceptions for apprentices and workers under 18.

The minimum wage covers the base hourly rate and must be paid for all hours worked, including overtime. It does not include benefits, bonuses, or allowances unless these are contractually guaranteed as part of regular compensation. Employers cannot offset other payments or deductions against the minimum wage obligation. The rule applies equally to full-time, part-time, and temporary workers, as well as those employed through staffing agencies.

The Mindestlohn is governed by the Kollektivvertrag (collective bargaining agreements) framework and enforced through Austria's labor law, primarily under the Arbeitszeit-Gesetz (Working Time Act) and related employment legislation. The Austrian Federal Ministry of Labour oversees compliance and enforcement.

Austria's minimum wage is indexed annually and adjusted each January based on inflation and wage development indicators. The most recent increase to €12.27 took effect on January 1, 2025, representing a statutory adjustment from the previous rate.

Employers and payroll teams must ensure all wage records document hourly rates at or above the current minimum, verify compliance for each pay period, and maintain documentation for inspection by labor authorities. Non-compliance can result in significant penalties and back-wage liability. Organizations should monitor annual adjustments and update payroll systems accordingly to maintain legal compliance.