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.

Use of measure

No information available (yet).

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Applies to all businesses	Does not apply to citizens

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

• 23 March 2022: Social partners presented a package of demands against inflation (www.vienna.at)
• 17 June 2022: First analysis anti-inflation package (www.arbeiterkammer.at)
• 05 August 2022: Tax-free 'cost-of-living' premium (news.wko.at)
• 20 February 2024: Employee bonus 2024 according to income tax law (www.bmf.gv.at)