State Governors for Change in Tips

The governor of Lower Austria, Johanna Mikl-Leitner (ÖVP), demanded in the "Kronen Zeitung" that tips in Austria be tax-free. This demand found support in several ÖVP-governed federal states. There are also voices within the SPÖ advocating for a change in the law. State Secretary Elisabeth Zehetner (ÖVP) is also seeking a solution.

Discussion on Tips Following Media Reports on ÖGK Back Payments

Tips are generally subject to social security contributions in this country. While the amounts were previously difficult to verify, with the increasing trend towards card payments, the given tips also appear in the cash register. Following media reports about partly high back payments from the Austrian Health Insurance Fund (ÖGK), a discussion recently flared up - also because tips are an essential part of wages in some industries. There is not a day when she is not asked about this topic several times, says Tourism State Secretary Zehetner, according to a preliminary report in an interview with the "Vorarlberger Nachrichten". "The government program states that we must solve this problem," said the politician. The legal situation has not really changed, only the auditing practice has. "We need to get this in order so that everyone has legal certainty," said Zehetner.

Mikl-Leitner and Doskozil for a Solution on Tips

"Performance must pay off. And tips are one of the most immediate forms of performance rewards in the homeland of hospitality," said Mikl-Leitner. This would also be a first signal from the black-red-pink government in times of tight public finances that they are serious about reducing the high tax and levy burden. Similarly, the governor of Burgenland, Hans Peter Doskozil (SPÖ): Especially "in economically difficult times," it is time "for the federal government to find a solution." Consideration must be given to the needs of employees and businesses, the politician told the "Kronen Zeitung".

ÖVP Governors Welcome Demands on Tips

Mikl-Leitner received support on Monday from several states, including Salzburg and Upper Austria. Especially in a federal state characterized by tourism and gastronomy like Salzburg, this would be sensible and would bring relief to companies and employees, a spokesperson for Salzburg's ÖVP governor Wilfried Haslauer told APA upon request. "We want performance to be rewarded - in this sense, tips should be tax-free," said Upper Austria's governor Thomas Stelzer (ÖVP). In the office of Vorarlberg's governor Markus Wallner (ÖVP), they referred to the statements of Mikl-Leitner and Haslauer. Tyrol's governor Anton Mattle (ÖVP) told APA that he "of course" supports a tax exemption on tips. "Tips are honestly earned and belong to the diligent, friendly, and willing employees," said the governor. For the tourism state of Tyrol, there is no question that a "practical and unbureaucratic solution" is needed here.

Tips: SPÖ-Kaiser Also for Change

The Carinthian SPÖ Governor Peter Kaiser also advocates for a new regulation. "A tip is a sign of thanks and appreciation - not a contribution to the state budget and therefore it should not generally be taxable," said Kaiser in response to an APA inquiry. However, this would not exempt the hospitality businesses from ensuring fair pay and attractive working conditions: "Instead of employees in the hospitality industry, billionaires and millionaires should finally also make fairer contributions to the common good in Austria, from which they also benefit."

NEOS State Secretary pleased about tip debate

NEOS State Secretary Sepp Schellhorn expressed his pleasure about the debate: "I am pleased that representatives of the social partner parties ÖVP and SPÖ are finally taking up my long-standing proposal. As a former entrepreneur and employer, I know how important tips are for employees. It is a significant part of the income and a direct appreciation from the guests. Adding more burdens 'on top' is the wrong way."

Tax regulation on tips inconsistent

The taxes on tips are often collected through a flat rate, which can vary depending on the industry and federal state. For waiters in Vienna, for example, it amounts to around 60 euros per month. Anything above that is subject to full social security contributions. The black-red-pink coalition has set out in the government program to evaluate the often different rules by federal states and make them practical. Like Mikl-Leitner, the President of the Austrian Chamber of Commerce, Harald Mahrer, recently called for tips to be completely exempt from taxes and levies.

Top unionist Hebenstreit criticizes "sham debate" on tips

For the chairman of the vida union, Roman Hebenstreit, "the tip discussion is a sham debate." The debate was triggered "by a Salzburg restaurateur who did not want to pay his social security contribution. And it was politically inflated by employer representatives," said the top unionist on Monday evening in a statement. Vida demands a nationwide uniform solution for tip flat rates in Austria. Currently, the amount of the social security flat rate that tourism employers have to pay varies from around 13 euros in Vorarlberg for employees in the lowest wage group to 59 euros in Vienna for head waiters or chief porters.

(APA/Red)

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