Allowance for Overtime Bonuses Increases to 170 Euros in 2026

In the coming year, up to 15 overtime bonuses per month amounting to a maximum of 170 euros will not be taxed. Previously, a maximum amount of 120 euros for up to 10 overtime hours was planned for 2026. In the course of the abolition of the so-called cold progression in 2023, the tax benefits for overtime were expanded.

The monthly tax-free maximum allowance for overtime bonuses was temporarily increased from the previous 86 euros to 200 euros for a maximum of 18 overtime hours (previously 10 overtime hours) for the years 2024 and 2025. Minister of Economic Affairs Wolfgang Hattmannsdorfer (ÖVP) had pushed in the fall for the retention of the increased allowance, which expires at the end of 2025.

Legal Regulation on Tax-Free Sunday and Holiday Pay

Additionally, the ÖVP/SPÖ/NEOS government wants to legally clarify that Sunday and holiday pay are tax-free again. This tax exemption had been lifted due to a ruling by the Federal Finance Court, according to a joint statement by the three social spokespersons of the governing parties. The regulation is to be introduced today, Tuesday, in the special session of the National Council by means of an initiative motion and then adopted retroactively with the beginning of the year in January. "It is completely right that those who work on holidays receive the corresponding pay tax-free," explained Minister of Economic Affairs Hattmannsdorfer (ÖVP).

"Every additional hour of work strengthens our economy. We need the right incentives for the upswing to succeed," said the club chairman and social spokesperson of the ÖVP as well as the federal chairman of the ÖAAB, August Wöginger, in a statement. SPÖ social spokesperson Josef Muchitsch also sees "a very good solution for the employees." For NEOS economic spokesperson Markus Hofer, "full-time and overtime work should pay off, which is why the extension of the tax relief is such an important signal."

Praise from Governing Parties, AK, ÖGB, and WKÖ - Criticism from the Greens

"This solution is socially balanced, fiscally responsible, and provides noticeable relief and planning security for employees," commented Labor Minister Korinna Schumann (SPÖ) on the agreement. Tax exemption for holiday and overtime bonuses would relieve employees "who work when others are off," said ÖGB federal manager Helene Schuberth. The Chamber of Labor Vienna welcomes "the now clear legal regulation" on the tax benefits of holiday work pay. The chairwoman of the WKÖ federal division for tourism and leisure industry, Susanne Kraus-Winkler, also expressed her satisfaction with the agreement.

The Green Party's social spokesperson Markus Koza called for a right to increase hours in part-time jobs instead of promoting overtime. "The governing parties are congratulating themselves on their overtime benefits, which predominantly benefit men. Meanwhile, they ignore that more than half of women employed part-time are still waiting for the right to increase their hours," said Koza.

(APA/Red)

This article has been automatically translated, read the original article here.