Dispute Over Flat Rates in Tip Regulation Delays Decision

There is still a tug-of-war over a new regulation on tip taxes following a social partner agreement. The ball is in the court of the three-party coalition, where the NEOS are slowing things down. Industry representatives once again demanded in front of journalists on Thursday that tips be made completely tax-free. The social partners have agreed on flat rates. If flat rates are to be introduced, they should be as low as possible, demand representatives from the gastronomy and hotel industries.

Tug-of-War Over Tip Regulation Prolonged

The head of the gastronomy division in the Chamber of Commerce (WKÖ), Alois Rainer, stated at a press conference in Vienna that the tipping behavior of customers has changed over the past years. "Almost half of the guests give a little less." WKÖ hotel division head Georg Imlauer said that it currently looks like there will be two flat rates, the highest level for service staff with cash handling, and the level below for those carrying food. The industry would like - if flat rates instead of the demanded tax exemption are introduced - a third "opening clause downwards for groups like the kitchen."

"Avert Hair-Raising Union Demands"

In the initial discussions, the union had "formulated hair-raising demands," criticized Imlauer. "We are trying to avert this as best as we can, we owe it to our employees and businesses." Due to the obviously extremely divergent positions, the negotiations were then elevated to the "next level" of the presidents among the social partners. However, the NEOS do not want to politically support their agreement for the time being. The ÖVP and SPÖ could probably live with it better, as the social partners close to them have finally reached an agreement. The plan also includes the cancellation of tax back payments that have recently arisen.

NEOS Slow Down on Tip Reform

According to the NEOS, in response to an APA inquiry, they are pushing for an "unbureaucratic solution in handling tips," said economic spokesperson Markus Hofer. "We are currently negotiating intensively with the coalition partners on this." The NEOS are trying to reduce the rumored flat rates for tips - 95 euros for the higher, 45 for the lower. Because the proposal from the social partners is actually acceptable, but they are "critical" if a significant increase in the flat rates is considered. Currently, there is a patchwork of flat rates of different amounts across Austria based on local customs - most of which have not been adjusted for a very long time. "Therefore, our proposal is for a significantly lower flat rate," said Hofer, as suggested by the social partners nationwide.

The union and also Finance Minister Markus Marterbauer (SPÖ) warn that the employees' pensions would suffer if there were a tax exemption. Imlauer, when asked about this: "Only 1.5 percent of the flat rate goes into the pension insurance," so that is not an argument. Rainer demanded the rapid establishment of legal certainty.

Card Payments Increased Pressure on New Regulation

Tips are generally subject to social security contributions in this country. Previously, the amounts were difficult to verify, but now, with the increasing trend towards card payments, they also appear in the cash register. This has led to sometimes high back payments from the Austrian Health Insurance Fund (ÖGK) and has sparked the current discussions. The health insurance fund is reporting deep red numbers.

(APA/Red)

This article has been automatically translated, read the original article here.