New home office law in Austria 2025

On 1 January 2025 Austria's new Telework Act (Telearbeitsgesetz, TelearbG) comes into force. It modernises the existing rules on home office and telework and brings them into line with how people work today. Employers and employees will need to adjust to a number of changes.

"The future of work is remote." (Matt Mullenweg, CEO of Automattic, 2019)

What counts as telework?

The Telework Act defines telework as work performed regularly outside a company's business premises – whether at home or at another place of the employee's own choosing – using information and communication technology. The term home office is therefore officially extended to cover every form of telework.

The main changes from 2025

Flexible places of work

Telework is no longer limited to your own home. Employees may now also carry out their work in cafés, parks, coworking spaces or even while on holiday – provided employer and employee agree to this in writing.

Accident insurance cover

A distinction is drawn between telework in the narrower sense (for example at home in Graz or in coworking spaces in Vienna) and telework in the broader sense (for example in cafés or parks).
In the narrower sense: accident insurance covers both the work itself and the journey to the place of work.
In the broader sense: only the work itself is covered, not the journey to the place of work.

The home office allowance

The previous home office allowance is replaced by the telework allowance. For each telework day, EUR 3 can be paid tax-free for up to 100 days per year. Important: the number of telework days has to be shown on the annual pay statement (L16).

The conditions for receiving the telework allowance tax-free remain unchanged. It can still be granted at up to EUR 3 for each working day spent entirely in the home office, capped at 100 days per calendar year.

A short example:

An employee works 80 days a year entirely from home.
The telework allowance is EUR 3 per day.

Calculation: 80 days × EUR 3 per day = EUR 240

In this case the employee receives a tax-free telework allowance of EUR 240 for the year.

A written agreement

Telework cannot be imposed unilaterally. Employer and employee have to set out in writing where and how telework takes place. Existing home office agreements remain valid but can be extended to cover additional places of work.

Equipment

As a rule, employers must provide the digital equipment. Alternatively, the parties can agree that employees use their own devices. In that case the employer has to cover the reasonable costs.

What does this mean for employers?

The new Telework Act strengthens both flexibility and legal certainty for employers and employees alike. Companies should review their existing home office arrangements and adapt them to the new rules. Written agreements, clear arrangements about equipment and accurate recording of telework days are essential.