If you employ people in Austria — or are about to open an Austrian entity — annual leave is one of the first compliance items you have to get right. The Annual Leave Act (Urlaubsgesetz, or UrlG) is short, prescriptive, and unusually generous compared with most other EU countries: a full five working weeks of paid leave is the statutory floor, rising to six weeks once an employee has built 25 years of service with the same employer.

This guide explains what the Urlaubsgesetz actually requires in 2026: how the 25 working day minimum is calculated, when the long-service top-up to 30 days kicks in, the six-month qualifying period, holiday pay rules under the Urlaubsentgelt principle, and the pitfalls that most often catch international employers. Every fact below is drawn directly from the Urlaubsgesetz 1976 and Austrian government guidance.

Key Takeaways

The statutory minimum is 25 working days of paid annual leave per year on a five-day week — equivalent to five weeks of leave.
The entitlement rises to 30 working days (six weeks) after 25 years of service with the same employer.
Full entitlement is available after six months of employment. Before that, leave is pro-rated at 2.08 days per month.
Austria counts leave in working days, Monday to Saturday — not calendar days.
Public holidays (Feiertage) are separate from annual leave and do not reduce the entitlement.
Untaken leave must be paid out on termination as Urlaubsersatzleistung; the entitlement cannot be waived.

The Statutory Entitlement Under the Urlaubsgesetz

Section 2 of the Urlaubsgesetz sets the floor: every employee is entitled to at least 25 working days of paid annual leave per year. For a typical five-day week, that equals five weeks. After 25 years of service with the same employer, the entitlement increases to 30 working days — a full six weeks.

The statutory framework rests on the Urlaubsgesetz 1976 (the Annual Leave Act) and the general civil code (Allgemeines Bürgerliches Gesetzbuch, ABGB). Together they define both the entitlement itself and how holiday pay (Urlaubsentgelt) must be calculated.

How the 25 Working Days Convert in Practice

Austria counts leave in working days, defined as Monday to Saturday. A five-day-week employee receives 25 working days of leave — which equals five working weeks. A six-day-week employee receives 30 working days, also equal to five weeks. The week-count is identical; only the day-count changes with the schedule.

Many international employers misread this and assume “25 days” means 25 calendar days. It does not. Saturdays count as working days for the purpose of calculating leave entitlement, even when the employee never actually works on Saturdays.

The 25-Year Long-Service Top-Up

Once an employee has accumulated 25 years of service with the same employer, the entitlement increases automatically from 25 to 30 working days per year — six weeks of paid leave. This is an underrated feature of Austrian law: long-tenured employees are the most expensive employees to lose, and they are also the ones who hit this threshold. Missing the increase is a common payroll error.

Eligibility: The Six-Month Qualifying Period

The full annual entitlement is unlocked after six months of continuous employment. During the first six months, leave accrues on a pro-rata basis at 2.08 working days per completed month (25 ÷ 12).

Once the six-month mark passes within a calendar year, the employee acquires the full annual entitlement for that year. From the second year of service onward, the full entitlement is available from 1 January.

This is functionally similar to Germany’s six-month Wartezeit. If you already operate in Germany, see our German annual leave guide for a side-by-side picture; the qualifying logic is comparable, but the daily entitlement is materially higher in Austria.

Worked Example: Mid-Year Joiner

Lukas joins a Vienna office on 1 April 2026. His leave year follows the calendar year.

April to September (six months): Lukas accrues at 2.08 working days per completed month — 6 × 2.08 = 12.5 working days by the end of September.
From 1 October: Lukas has completed his qualifying period and is entitled to the full 25 working days for 2026, even though he has worked only nine months of the year.

Worked Example: Mid-Year Leaver Before Six Months

If an employee leaves before completing six months — say, after four months — they receive 4 × 2.08 = 8.32 working days of pro-rated entitlement, which must be paid out on termination as Urlaubsersatzleistung if untaken.

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Employer Obligations Under the Urlaubsgesetz

The Urlaubsgesetz places several non-negotiable duties on the employer. Treat the following as a checklist.

1. Grant the Statutory Minimum

You must grant at least 25 working days of paid annual leave per year — or 30 working days once the employee passes the 25-year service mark. Contracts that purport to offer less are void to the extent of the shortfall.

2. Pay Urlaubsentgelt at Full Average Earnings

Holiday pay (Urlaubsentgelt) must continue the employee’s normal remuneration during leave. Under the Urlaubsgesetz, this means the average earnings of the 13 weeks before the leave begins, including:

Regular allowances and supplements
Overtime supplements that form part of regular pay
Commissions

The principle is that the employee should not be financially worse off for taking leave. If you only pay base salary during leave for an employee who normally earns substantial commission or shift premia, you are underpaying.

3. Allow Leave Within the Calendar Year

Employers must enable employees to actually use their leave within the calendar year. Leave timing is normally agreed between employer and employee. Employers may refuse particular dates for operational reasons — but they cannot refuse leave entirely or push the entire entitlement out of the year.

4. Pay Out Untaken Leave on Termination

When employment ends, any accrued but untaken leave must be paid out in cash as Urlaubsersatzleistung. This is calculated based on the employee’s current remuneration and is mandatory under the Urlaubsgesetz.

5. Never Require a Waiver

Section 7 of the Urlaubsgesetz prohibits employers from requiring an employee to waive their annual leave entitlement. Any agreement to that effect is void.

Carry-Over of Unused Leave

The Urlaubsgesetz default is that unused annual leave generally cannot be carried over into the next calendar year. Leave is meant to be taken in the year it accrues.

There is an important exception: if the employee was unable to take leave because of illness or other compelling reasons, carry-over is permitted. In practice, the statutory limitation period for unused leave is two years from the end of the leave year in which it accrued, but employers should not rely on this — the safest approach is to plan leave usage proactively and document any carry-over rationale.

Holiday Pay Calculation in Detail

Urlaubsentgelt under the Urlaubsgesetz is calculated as follows:

Identify the 13 weeks ending immediately before the first day of the leave period.
Calculate total earnings in that window, including regular allowances, regular overtime supplements, and commissions.
Divide by the working days in the reference period to get a daily rate.
Multiply by the number of leave working days being taken.

For salaried employees on a stable wage with no variable pay, this typically just means continuing to pay normal salary during the leave period. Complexity arises when employees earn meaningful variable components — sales commission, on-call premia, or shift differentials — that must be averaged into the holiday rate.

This calculation pattern is similar to the equivalent rule across the EU. For broader context, see our overview of how the EU Working Time Directive shapes leave entitlements.

Common Pitfalls for International Employers

If your team has only worked in the UK, US, or Australia before, the Austrian framework will catch you off guard in predictable ways. Watch for these.

Pitfall 1: Counting Leave in Calendar Days, Not Working Days

Austria counts leave in working days, Monday to Saturday — not calendar days. A five-day worker gets 25 working days = five weeks. Treating “25 days” as 25 calendar days will systematically under-grant leave and create a clear breach of the Urlaubsgesetz.

Pitfall 2: Excluding Variable Pay From Urlaubsentgelt

Regular allowances, overtime supplements, and commissions must be included in holiday pay calculations. Paying base salary only during leave is a frequent and avoidable underpayment.

Pitfall 3: Forgetting the 25-Year Service Increase

After 25 years with the same employer, the entitlement increases from 25 to 30 working days. If your HRIS doesn’t track tenure-driven entitlement changes, this increase will be missed silently — and the underpayment compounds every year afterwards.

Pitfall 4: Treating Public Holidays as Leave

Austrian public holidays (Feiertage) are entirely separate from annual leave. They do not reduce the 25 working day entitlement. Do not deduct a Feiertag that falls during a leave period from the leave balance.

Pitfall 5: Failing to Pay Out on Termination

Untaken accrued leave must be paid out as Urlaubsersatzleistung when employment ends. This is mandatory and cannot be waived in the contract. Skipping the payout — or trying to “use up” leave during a notice period without paying — is a clear breach.

Frequently Asked Questions

How many days of annual leave am I entitled to in Austria?

The statutory minimum under the Urlaubsgesetz is 25 working days of paid annual leave per year on a five-day week, equivalent to five weeks. After 25 years of service with the same employer, the entitlement increases to 30 working days (six weeks).

Does annual leave include public holidays in Austria?

No. Public holidays (Feiertage) are separate from annual leave under Austrian law and do not count against the 25 working day entitlement. A holiday that falls on a weekday during a leave period should not reduce the leave balance.

When am I entitled to my full annual leave in Austria?

Full annual leave entitlement is available after six months of continuous employment. During the first six months, leave accrues pro-rata at 2.08 working days per completed month. Once the qualifying period is met within a calendar year, the full entitlement applies.

Can my Austrian employer refuse my annual leave?

Employers can refuse specific dates for operational reasons, but they cannot refuse leave entirely. The employer is obliged to allow the employee to take their full entitlement within the calendar year.

What happens to unused leave on termination in Austria?

Unused annual leave must be paid out in cash on termination as Urlaubsersatzleistung. The payout is calculated based on the employee’s current remuneration. The right to payout cannot be waived in the employment contract.

How is holiday pay calculated in Austria?

Holiday pay (Urlaubsentgelt) is based on the employee’s average earnings over the 13 weeks before the leave begins, including regular allowances, regular overtime supplements, and commissions. Salaried employees on a fixed wage with no variable pay typically just receive continued normal pay.

Does unused annual leave carry over in Austria?

Generally no — annual leave should be taken in the calendar year it accrues. Carry-over is permitted where the employee was unable to take leave due to illness or other compelling reasons.

Practical Compliance Checklist

If you operate in Austria, your leave management system should handle the following at minimum:

Calculate statutory entitlement on a working-day basis (Mon–Sat) and convert correctly to each employee’s actual schedule.
Track the six-month qualifying period per employee and switch from pro-rata (2.08 days/month) to full entitlement at the right point.
Apply the 25-year long-service increase automatically from 25 to 30 working days.
Calculate Urlaubsentgelt using the 13-week reference average and include regular variable pay.
Keep public holidays (Feiertage) separate from annual leave balances.
Pay out untaken leave automatically on termination as Urlaubsersatzleistung.
Document the rationale whenever carry-over into the following year is granted.

How Leave Balance Helps Austrian Employers Stay Compliant

Managing the Urlaubsgesetz correctly across an Austrian workforce — alongside German, UK, or AU teams — is the kind of compliance work that breaks generic spreadsheets. Leave Balance is built to handle it.

Country-specific entitlement rules for Austria, including five-day to six-day conversion and the long-service top-up at 25 years.
Qualifying-period tracking that automatically switches from pro-rata accrual (2.08 days/month) to full entitlement at the six-month mark.
Urlaubsentgelt calculations that incorporate the 13-week reference average where you record variable pay.
Multi-country support with separate policies per entity, all on a single dashboard. See our overview of managing leave across Europe for how this works in practice.
Audit-ready records for terminations and Urlaubsersatzleistung payouts.

At $10 per month for unlimited employees and unlimited policies, Leave Balance gives you the country-specific rule engine you need without the cost of an enterprise HRIS. Start your 14-day free trial — no credit card required.