Tax shock for waiter and caregiver: Holiday work now expensive!

Tax shock for waiter and caregiver: Holiday work now expensive!

From January 1, 2025, employees in certain professions, such as waiters, nurses and employees in tourism, have to pay taxes for their holiday wages for the first time. This regulation, which partly applies retrospectively, surprises many employees because they have only now been informed about the changes by their employers. The taxation of the holiday work goes back to a judgment of the Federal Finance Court, which was felled in December 2024. Until the end of 2024, holiday wages were tax -free as long as no additional surcharge was paid, which will now change fundamentally. According to OE24, the Ministry of Finance took over this new regulation in April 2024.

If work is done on public holidays and this counts as a regular service time, employees must pay taxes. This can make up to 130 euros per month for some employees. An exception is the person who receives a special holiday surcharge, since this group is not affected by the new tax provisions.

background and legal foundations

The decision of the Federal Finance Court, which was published on December 19, 2024 under the file number RV/3100544/2017, made it clear that the holiday wage is considered a taxable wages. However, employees retain their entitlement to remuneration for unusual work on public holidays, unless time compensation is agreed. This also applies to the work done during the holiday rest, as explained in the [WKO] (https://www.wko.at/lohnvertrecht/feiertagenfagentraicht-der-der-der-der- der- tax exemption). The surcharge for holiday work is only tax -free if the payments expressly indicate this and paid for public holidays.

In the response to the Federal Ministry of Finance, the BFG's perspective was confirmed. It is emphasized that the holiday wage according to Section 9 (5) is not considered to be a surcharge within the meaning of Section 68 (1) of the Income Tax Act 1988. By December 31, 2024, the beneficiary treatment was still valid, but from the calendar year 2025 the new regulation will be applied, which may be necessary to look back on the first three months of the year, such as this [BMF] (https://www.bmf.gv.at/rechtsnews/steuern-rechtsnews/aktuelle-infos-und-erlaesse/fachinformations- Achin information-wage tax/tax treatment-von holiday pay-wire-genetically genetically remedy%C3%C3%9F-%C2%A7-9-5-arg.html) describes in detail.

criticism of the new regulation

Critics of the new tax regulation describe them as a hidden tax increase, which in particular affects workers in the affected sectors. While the official Ministry of Finance is aiming to create "clear conditions", it remains to be seen how the employees will perceive the changeover to the new taxation.