Tipping reform: This is how Austria's service workers will benefit from 2026!

Tipping reform: This is how Austria's service workers will benefit from 2026!

The Austrian federal government has decided on far-reaching regulations for taxes on tips. This is a key step in creating uniform flat rates for social security contributions and avoiding unforeseeable additional payments. From 2026, flat rates for pay waiters will start at 65 euros per month and rise to 100 euros by 2028. For waiters without debt collection, 45 euros per month are provided, which will increase to 50 euros by 2028. An annual adjustment for inflation is planned from 2029. From a macroeconomic perspective, the new regulation is intended to provide greater planning security for catering establishments, which previously had to struggle with frequent additional demands from the Austrian Health Insurance Fund (ÖGK).

Another essential element of the new regulation is that reclaims by social insurance are excluded. This should also ease the worries of many employees in the catering industry, who are often affected by subsequent audits. The NEOS initially expressed concerns and pointed out that the flat rates proposed by the ÖVP and SPÖ were too high. However, NEOS State Secretary Josef Schellhorn was able to successfully reduce the flat rates by a third.

Reactions from the industry

The new regulation was welcomed by both the ÖHV hotel association and the Chamber of Commerce (WKÖ). These organizations had been campaigning for a long time to relieve the burden on catering businesses. At the same time, the ÖGB trade union federation warned that the changes could have a negative impact on employees' pension entitlements. According to calculations by the ÖGB, increasing the flat rates could increase pension entitlements by around 27 euros per month.

In a survey by Reppublika on behalf of the ÖHV, 82% of respondents were in favor of an end to taxes on tips. Within various industries, it can be seen that 87% of catering employees regularly receive tips, while in other areas such as trades and delivery services, tips often remain tax-free. In Vienna, waiters pay around 60 euros a month in social security contributions on tips, which can prove burdensome as their income increases.

The look into the future

The federal government emphasizes that tips remain tax-free in Austria. This means that the tax authorities do not receive any share of the voluntary benefits for service workers. The planned changes to social security contributions stipulate that the flat rates in the General Social Security Act will be reduced by around a third. In cases where the actual tip exceeds the set flat rate, no additional charges apply.

In summary, it can be said that the new regulation should benefit both the employees in the catering industry and the companies themselves. Above all, the lack of additional demands from social insurance provides legal and planning security that many in the industry rely on. The discussion about taxes on tips will certainly remain an exciting topic in the coming months. The need for simplifications in the system is obvious, and it remains to be seen whether further reforms will follow in order to sustainably improve the situation of service staff.

For detailed information about the new regulations, take a look at the articles from oe24, guest.at and kosmo.at.