Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure AT-2022-1/2919 – measures in Austria
|Country||Austria , applies nationwide|
|Time period||Temporary, 01 January 2022 – 31 December 2023|
|Context||War in Ukraine|
|Type||Legislations or other statutory regulations|
Responses to inflation
– Increasing income in general
|Author||Bernadette Allinger (Forba) and Eurofound|
|Measure added||16 September 2022 (updated 20 September 2022)|
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 .
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.
No information available (yet).
Employees in standard employment
||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
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.
It can be assumed that the social partners are content with the implementation of the measure.
Eurofound (2022), Tax-free "cost of living" bonus payments, measure AT-2022-1/2919 (measures in Austria), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/AT-2022-1_2919.html
30 January 2023
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.