In Austria, employees who are unable to work due to illness are entitled to continued pay (Entgeltfortzahlung) from their employer for a specified period, followed by sickness benefit (Krankengeld) from the health insurance fund. The duration of continued pay depends on the employee's length of service with the employer.

Statutory entitlement

Continued pay from employer: 4 weeks for less than 1 year of service, 6 weeks for 1–5 years, 8 weeks for 5–15 years, 12 weeks for over 15 years. After continued pay ends, Krankengeld (sickness benefit) from health insurance: up to 28 weeks at 50–60% of the assessment basis.

Eligibility

All employees are entitled to continued pay during illness. The duration depends on length of service. There is no minimum service requirement for the initial entitlement, but the duration increases with service.

Employer obligations

  • Continue to pay the employee's full remuneration during the Entgeltfortzahlung period.
  • Accept medical certificates from registered medical practitioners.
  • Not dismiss the employee during the continued pay period (special protection against dismissal).
  • Notify the health insurance fund if the employee's illness extends beyond the continued pay period.
  • Maintain the employee's position during sick leave.

Employee rights

  • Right to continued pay during illness for the statutory period.
  • Right to Krankengeld from health insurance after continued pay ends.
  • Right to special protection against dismissal during the continued pay period.
  • Right to return to work after recovery.

Common pitfalls

  • Not calculating continued pay correctly — the duration depends on the employee's total length of service, not just service with the current employer.
  • Not notifying the health insurance fund — if the illness extends beyond the continued pay period, the employer must notify the health insurance fund.
  • Dismissing an employee during the continued pay period — there is special protection against dismissal during this period.

Continued pay (Entgeltfortzahlung)

The employer continues to pay the employee's full remuneration during illness. The duration depends on length of service: 4 weeks (less than 1 year), 6 weeks (1–5 years), 8 weeks (5–15 years), or 12 weeks (over 15 years). The period resets after six months of good health.

Sickness benefit (Krankengeld)

After the continued pay period ends, the employee receives Krankengeld from the health insurance fund. This is paid at 50–60% of the assessment basis for up to 28 weeks. The employee must be certified as unfit for work by a doctor.

Protection against dismissal

During the continued pay period, employees have special protection against dismissal. The employer cannot terminate the employment relationship during this period, except in cases of serious misconduct.

Frequently asked questions

How is continued pay calculated?

Continued pay is calculated based on the employee's normal remuneration, including regular allowances and supplements. It is the full pay the employee would have received if not ill.

Can an employer dismiss an employee on sick leave?

During the continued pay period, dismissal is prohibited (except for serious misconduct). After the continued pay period, the employee is protected by general dismissal rules.

Does the six-month reset apply to each illness?

Yes. The continued pay period resets after the employee has been in good health for six consecutive months.

Sources

This page is provided for general guidance and does not constitute legal advice. Always check the cited primary source for current law before making employment decisions.