Chamber of Commerce and Union Agree on New Tip Regulation

Finance Minister Markus Marterbauer (SPÖ) indirectly confirmed the agreement on Tuesday evening. However, he also pointed out that there must also be consensus within the government. Specifically, an understanding must be reached with the NEOS. Their negotiator Michael Bernhard expressed himself rather cautiously in the "Kurier" (Wednesday edition): "The agreement is still a long way off."

In principle, tips in Austria are subject to social security contributions. While these amounts were previously difficult to verify, they now appear in the cash register due to the increased trend towards card payments. This led to partially significant back payments from the Austrian Health Insurance Fund (ÖGK) and triggered extensive discussions.

The "Salzburger Nachrichten" reports in their Wednesday edition, however, that an agreement in the government seems to be imminent. The goal is apparently a standardization of the flat rates on which social security contributions on tips are levied.

Calls for Standardization of Tip Flat Rates

According to government plans, this flat rate, which varies from state to state, is expected to be raised to 95 euros, reports the "SN". Marterbauer says in the "ZiB2": "This is the direction it will go." Specifically, according to "SN", instead of two levels - a small and a large tip flat rate - there will be three levels in the future. For employees who receive a lot of tips - such as waiters - the flat rate should be 95 euros. For others with little tips, the amount would be 45 euros. Those who almost never receive tips can be completely exempted from the flat rate.

The chairman of the Austrian Health Insurance Fund, Andreas Huss, recently proposed a nationwide flat rate of at least 100 euros, which should then be adjusted annually for inflation. However, the employers found the amount to be too high. As a possible compromise, a uniform but lower flat rate is being circulated in negotiation circles, according to the ORF radio program.

The social partners have apparently reached an agreement, but without disclosing any substantive details. The three governing parties are now up next, and they still need to reach a consensus. In the case of a minor reform, the issue could be addressed in the National Council this week. If the reform is more extensive, however, there would need to be a review process.

Amnesty Planned

As a sweetener for the economy, it is planned that companies will no longer be retroactively charged in pending cases, meaning there will be an amnesty. The finance minister also indirectly confirmed this plan in the evening.

Tips are generally subject to social security contributions in this country. Previously, the amounts were difficult to verify, but now, with the increasing trend towards card payments, they also appear in the cash register. This has led to sometimes high back payments from the Austrian Health Insurance Fund (ÖGK) and has sparked the current discussions.

(APA/Red)

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