Factsheet for measure
AT-2022-1/2919
–
Updated
– measures in Austria
Tax-free 'cost of living' bonus payments
Steuerfreie Teuerungsprämie
Background information
Due to the high inflation, driven by increasing energy and food prices and supply shortages, the federal government of Austria has issued three anti-inflation packages in the course of spring and summer 2022.
The latest package from August 2022 consists of several measures targeted towards compensating businesses, workers and citizens for the increasing prices, including
financial measures supporting families in the cost-of-living crisis
, a
tax reform abolishing the “cold progression” and adjustment of social benefits to inflation
, the establishment of a
housing umbrella programme for securing one’s home
and a
climate bonus and inflation bonus
.
Content of measure
In order to allow employers to pay tax-free bonus payments to their employees in order to support them in the face of increasing prices, a similar regulation as the
tax exemption for COVID-19 bonuses
was initiated. These so-called "cost-of- living premiums" take the form of additional one-time payments which are tax-free and social security-free up to a total of €3,000 in the calendar years 2022 or 2023. Of the total amount, €1,000 are linked to a corresponding collective regulation (wage structure regulation) and €2,000 can be granted to individual employees.
Updates
The following updates to this measure have been made after it came into effect.
|
20 February 2024
|
From 2024 onwards, such a bonus can also be paid out tax-free and duty-free in the amount of up to €3,000 if it is included in the respective collective agreement(s).
|
Use of measure
No information available (yet).
Target groups
Actors and funding
|
Actors
|
Funding
|
National government
|
Employer
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Consulted
|
Consulted
|
|
Form
|
Direct consultation outside a formal body
|
Direct consultation outside a formal body
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
No involvement
-
Main level of involvement: Peak or cross-sectoral level
Involvement
According to information from the Chamber of Labour, this measure has been part of a common "package of demands" presented by the heads of the social partner organisations at a (non-public) summit with representatives from the national government.
Views and reactions
It can be assumed that the social partners are content with the implementation of the measure.
Sources
