Danger to pensions: ÖGB warns of free tax!

Danger to pensions: ÖGB warns of free tax!

Vienna, Österreich - The debate about the complete tax freedom of drinking money in Austria is currently experiencing a new highlight. The Austrian Trade Union Confederation (ÖGB) expresses its concerns and warns of possible negative effects on pensions and social benefits, should the claim for a tax exemption be implemented. Several politicians and experts also share this assessment who are concerned about the income situation in low -income industries such as gastronomy and tourism. According to a report by vienna.at , the drinking funds in Austria are currently under social contribution.

A main factor that drives the debate is the trend towards payment of card, which makes the income from drinking money more transparent. This leads to an increased review on the part of social security, in particular by the Austrian Health Insurance Fund (ÖGK), which claims to be demanding due to the new visibility. The discussion about these additional claims is supplemented by the statements of Emanuel Straka from the Vida union, which warns of a "pension robbery". Finance Minister Markus Marterbauer supports the argumentation of the ÖGB that the abolition of social security contributions from drinking funds could lead to loss of social benefits in the long term.

political demands and solutions

Support for a complete tax freedom of the drinking money comes from various governors and the Chamber of Commerce. Johanna Mikl-Leitner (ÖVP) confirmed that tips were a form of performance fees. It calls for a tax exemption as a signal of the federal government to reduce tax and tax load. Hans Peter Doskozil (SPÖ), on the other hand, pleads for a solution that takes into account both the concerns of the employees and the companies, especially in economically difficult times, as in an article by The press is.

The current management of drinking money is often via flat rates that vary depending on the industry and the federal state. An example: In Vienna, the flat rate for waiter is around 60 euros per month, while amounts above are subject to full social security obligation. Employers are not obliged to lead tip records if flat rates are applied. These regulations should be further considered in a future evaluation process and a practical design of the regulations.

tip as a relevant wage component

tips play an important role in many industries, especially in the hotel and hospitality industry. It is important to emphasize that tips are considered a voluntary grant, but is still subject to contributions, which increases the general contribution basis. According to the information from the Health Insurance Fund, workers who do not apply for a lump sum must have records about obtained tips.
A service surcharge that is automatically set up on invoices does not count as a tip and is subject to contributions.

The discussion shows how important the optimization of the legal and tax framework for drinking money is in order to protect both the interests of employees and to offer legal certainty. While the pandemic has reinforced the trend towards payment of the card and thus creates transparency, it is now important to actively address the associated challenges so as not to endanger the social standards.