Austria will first impose a two-year restriction and then, based on the situation on the labour market, decide on further steps within the law, the ministry said.
The restriction may be extended for three years and then for another two and a total of seven years.
Citing the foreign ministry, the Austrian portal FriedlNews said on Wednesday that Austria would use the maximum seven-year transitional period for Croatian workers.
Croatia's European Union accession treaty envisages a transitional period which EU member countries can apply to Croatian workers - a two year restriction which can be extended for three and, with a justified reason, for another two years. Croatia is entitled to reciprocate. The same rules applied in the 2004 and 2007 enlargement rounds.
Germany was the first to announce in January a restriction for Croatian workers for the first two years of Croatia's EU membership, except for workers with university degrees and seasonal workers. The Netherlands did so in March. The Czech government, on the other hand, said it would not impose any restrictions.