To abolish the bracket creep, known in Austria as “cold progression”, the legislator has planned an array of various measures. On the one hand, the income tax brackets will be raised, while on the other, employees shall benefit from various tax relief measures. These tax benefits will come into force on January 1, 2024.
Benefits for, dirt-, hardship-, hazard- and overtime work allowances
The monthly allowance for overtime work will be permanently increased from the previous value of EUR 86 to EUR 120. As a temporary provision in the years 2024 and 2025, the monthly allowance for the first 18 hours of overtime work will also be EUR 200.
The monthly allowance for dirt, hardship and hazard bonuses as well as the tax allowance for Sunday, public holiday and night work bonuses have also been increased from EUR 360 to EUR 400.
Home office lump sum for office equipment now permanent
The tax regulations on home office work of employees, which were originally introduced only for a limited period, have now been extended indefinitely. Thus, the payment of a home office lump sum of up to EUR 300 to cover the costs of ergonomic office furniture is still tax deductible. As before, the prerequisite is that at least 26 working days are spent exclusively in home office.