Dear Clients,
The "cost-of-living bonus", which could be paid out tax-free in 2022 and 2023, is also available for 2024, although the name has changed: the "cost-of-living bonus" has become the "employee bonus".
Unlike in previous years, the payment must be made on the basis of a collective agreement, a company agreement or an agreement concluded with all employees.
The regulation in detail:
- The employee bonus is provided for in a collective agreement (Kollektivvertrag) or
- in a company agreement (Betriebsvereinbarung) that is concluded on the basis of an explicit authorization in a collective agreement, or
- in a company agreement (Betriebsvereinbarung) if there is no employers' association capable of concluding a collective agreement in the sector concerned, or
- in companies without a works council (Betriebsrat), in an agreement concluded with all employees if there is a collective agreement authorization for a company agreement or if there is no collective agreement applicable.
As in previous years, this must be an additional payment that has not yet been granted. Payments of the cost-of-living bonus in 2022 and 2023 do not constitute an obstacle. The employee bonus is tax- and contribution-free up to an amount of EUR 3,000. It should be noted that payments made as a result of previous performance agreements are subject to tax and contributions and do not fall under this regulation.
If a profit share (Gewinnbeteiligung, § 3 sec. 1/35 Austrian Income Tax Act) and an employee bonus are paid out at the same time in 2024, the tax benefit is capped at a maximum amount of EUR 3,000. If this amount is exceeded or if voluntary cost-of-living bonuses are paid to employees, this amount may not be credited to the annual sixth and taxation is based on the standard rate.
The full amount of EUR 3,000 can also be paid to marginally employed (“geringfügig Beschäftigte”) and part-time employees (Teilzeitmitarbeiter).
Best regards
Manfred Gross
Vienna, February 2024
