Lexi Webster
Austria has one of the top 10 highest average salaries in Europe, with the average Austrian salary being around €50,000 per year. This is moderately higher than the EU average of €28,217 (2023). In this paragraph, we will explore the average salary in Austria, the factors that influence it, and how it compares to the rest of Europe. We will also discuss the cost of living in Austria and how it impacts the purchasing power of Austrian residents.
| Characteristics | Values |
|---|---|
| Average Salary in Austria | €38,457 per year or €3,204 monthly |
| Average Salary in Vienna | €56,980 annually or €4,748 monthly |
| Average Salary for Entry-Level Jobs in Vienna | €40,833 |
| Minimum Wage | €1,500 gross per month |
| Average Salary After Tax | €2,763 monthly |
| Cost of Living for a Single Person in the City | €1,800 per month |
| Good Salary in Austria | Over €60,000 |
| Average Salary After Tax and Social Benefits | €2,218 per month |
| Average Net Salary | €2,200 to €2,800 monthly |
| Average Gross Annual Salary for Full-Time Employees | €57,731 |
| Salary Range for Executives | €6,647.20 to €7,740 gross per month |
| Salary Range for Highly Skilled Workers | €3,703.44 to €4,748 gross per month |
| Salary Range for Managers | €5,460.20 gross per month |
| Salary Range for Specialists | €4,510.60 gross per month |
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What You'll Learn
Average salary in Vienna
The average salary in Vienna, Austria, is dependent on a variety of factors, including industry, experience, qualifications, and language skills. According to ERI's Global Salary Report, the average yearly salary in Vienna is €51,823, or €25 per hour. This is higher than the average yearly salary in the rest of Austria, which is €38,457.
In Vienna, people generally earn higher salaries due to more job opportunities and a higher cost of living compared to the rest of the country. Salary Explorer reports that the most in-demand job sectors in Vienna include IT, software engineering, and data science. The average salary for entry-level jobs in Vienna is around €30,000, while mid-level professionals earn an average of €40,000, and senior-level workers earn approximately €50,000 per year.
Various salary reports provide different estimates for the average salary in Vienna. Stepstone reports an average annual salary of €56,980, while Payscale estimates €54,000, and Kununu reports €47,577. These discrepancies may be due to the sources receiving data primarily from professionals and full-time workers, resulting in higher averages.
When discussing net salary or take-home pay in Austria, the average monthly salary after deductions typically falls between €2,200 and €2,800, depending on individual tax rates and other factors. It is worth noting that Austrian employees also receive additional payments, such as the 13th and 14th monthly salaries, known as holiday and Christmas bonuses.
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Gender wage gap
The average salary in Austria is €38,457 per year or €3,204 per month. This figure represents the gross wage, so taxes and social security contributions are not yet factored in. After these deductions, the net salary is €26,618 per year or €2,218 per month. In Vienna, the average salary is higher, ranging from €54,000 to €56,980 per year.
When discussing average salaries, it is important to consider factors that can cause deviations from the mean wage. One such factor is the gender wage gap, which refers to the disparity between the earnings of men and women. In Austria, the gender wage gap has narrowed over the years, but it still persists. Here is an examination of the gender wage gap in Austria:
Historical Perspective
According to studies, the gender wage gap in Austria remained relatively stagnant during the 1990s. However, between 2002 and 2007, the gap started to decrease. From 2005 to 2017, the raw gap in hourly wages declined from 18.6 log points to 14.9 log points. This improvement was driven by relative advancements in women's characteristics, including their increased participation in the labour market and higher educational attainment.
Factors Influencing the Gender Wage Gap
- Part-Time Work: Many women in Austria opt for part-time employment due to caregiving responsibilities, and since part-time jobs often pay less, this contributes to lower average salaries for women.
- Sectoral Segregation: Women tend to work in sectors with lower pay, such as health, social services, retail, and education. They are also underrepresented in top management positions, which generally offer higher salaries.
- Educational Attainment: While Austrian women are often highly educated, they may be employed in roles that do not match their level of education, impacting their earning potential.
- Structural Discrimination: Inequality in the labour market and a lack of pay transparency have contributed to the gender wage gap. However, Austria has implemented mechanisms to address this, including legal requirements to state minimum wages in job advertisements and mandatory income reports for larger companies.
Addressing the Issue
To promote income equality, Austria has taken steps towards eliminating structural discrimination and enhancing pay transparency. Political debates have also addressed unfair wage discrimination, and measures such as quotas for boards of directors and executive directors have been introduced.
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Salary by industry
Austria has one of the most robust economies in Europe, with high standards of living and high taxes. The average salary in Austria was €47,177 per year in 2021, compared to €46,433 in 2020. The average salary in the capital, Vienna, is €55k.
Austria does not have a national statutory minimum wage, unlike many other EU countries. Instead, minimum wages are set according to sector through collective bargaining agreements (Kollektivverträge). These cover almost all employees across all industries. Most of these agreements set minimum monthly salaries, and in many cases, the lowest wage across sectors is around €1,700 gross per month. However, this can vary by industry, job role, and experience level. For example, the minimum salary for a Red-White-Red Card holder or applicant who is a graduate of an Austrian university is determined by the applicable collective bargaining agreement.
Some of the highest-paid sectors in Austria include IT, engineering, and finance. The gross salary range for people working in Austria is typically from €2,016 (minimum salary) to €6,470 (highest average, the actual maximum salary is higher). This is the total monthly salary, including bonuses.
The gender pay gap is still prevalent in Austria, with men making an average of 18.4% more than women. On average, full-time employed men make about €5,000 per year more than full-time employed women. Some of the gender pay gaps may be explained by sectors that are predominantly male being more highly paid.
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Salary by experience level
Experience level is a significant factor in determining salaries in Austria. While the average gross annual salary for full-time employees in Austria is €57,731, with a gross monthly income of around €3,500, experience plays a crucial role in how much an individual earns.
Those with 2–5 years of experience can expect to earn 32%–35% more than newcomers. This experience allows for higher wages due to the increased knowledge and skills in a particular field. As employees gain more experience, their salaries tend to increase accordingly.
With 10 years of experience, individuals may see a 20% raise, further widening the salary gap between experienced professionals and newcomers. This raise reflects the added value that comes with a decade of experience, often resulting in higher pay grades and increased responsibilities.
At the 15-year mark, salaries typically increase by an additional 14% to 15%. This increase signifies the high value placed on extensive experience in the Austrian job market. It's worth noting that these percentages are general estimates, and actual salary increases may vary depending on the industry, job role, and other factors.
In addition to experience, other factors, such as industry, occupation, location, and education, also influence salaries in Austria. For example, workers in urban areas like Vienna and Salzburg tend to earn higher salaries due to the higher cost of living and the concentration of industries. Moreover, certain sectors, such as the chemical and oil processing industry, IT, and financial services, are known to offer higher wages.
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Salary by job title
In Austria, salaries vary depending on factors such as industry, occupation, age, experience, and region. While there is no standardised minimum wage, the Austrian Federal Economic Chamber (WKO) and the Austrian Trade Union Federation (ÖGB) have agreed that the minimum wage should be €1,500 gross per month. However, most industries pay more than this based on their own collective agreements.
Aviation:
Airline pilots and flight engineers typically earn high salaries to compensate for rigorous training, irregular working hours, and responsibility for passenger safety.
Energy Sector:
Experienced professionals in the oil, gas, and renewable energy sectors often receive high compensation due to the industry's strategic importance and complexity. Earnings can vary depending on the employer, level of experience, and specific job role.
Finance and Management:
Individuals working in finance and management positions boast the highest average salaries in Austria. Within this group, project managers, lawyers, and controllers are among the highest-paid.
IT:
The IT sector is one of the highest-paid industries in Austria, with professionals in this field earning competitive salaries.
Entry-level positions:
In Vienna, entry-level positions typically offer an average salary of around €40,833 per year.
Other sectors:
Other sectors that are known to offer competitive salaries include banking, water supply and disposal, and chemical and oil processing.
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Frequently asked questions
The average gross annual salary in Austria varies depending on the source and the year, but it typically falls between €38,457 and €57,731. The average net annual salary is between €26,618 and €35,961.
The average gross monthly income for full-time employees is around €3,500, while the average net monthly salary is between €2,200 and €2,996.
Austria does not have a state-mandated minimum wage. However, the Austrian Federal Economic Chamber (WKO) and the Austrian Trade Union Federation (ÖGB) have agreed that the minimum wage in collective agreements should be €1,500 gross per month. As of January 2025, the minimum wage will increase to €970 per month.
