Many companies use the living allowance to support their employees. Others prefer to rely on profit sharing. A baker from Engerwitzdorf in Upper Austria is building on long-term effects – and higher salaries.
“We know workers who have their backs against the wall – now it’s time to act quickly,” said Bernd Zierhut, director of Wels-based mineral oil dealer Doppler. Food that has become more expensive, higher electricity and heating costs and higher interest rates on housing loans – all this is putting pressure on the workers in the country.
With the tax-free housing bonus, companies can help their employees. More and more people are taking advantage of this: as reported, hairdressing chain Klipp, which operates from Thalheim, pays its 1,400 employees up to 1,200 euros, depending on the weekly working time, plastics technology specialist AGRU has been paying its 700 employees in Bad Hall 170 euros more per week since the end of July.
Details often still need to be clarified
Others, on the other hand, are still tinkering. “We haven’t made a decision yet,” bellaflora boss Franz Koll explained in an interview with “Krone”. “There will be something,” says Spar OÖ. However, details have not yet been determined. The same goes for HAKA kitchens in Traun. While plastics processor Greiner rejects the cost of living premium, Gurten factory manufacturer Fill and engine manufacturer Pierer Mobility point to their profit sharing.
Reinhard Honeder takes a different approach: the boss of the natural bakery of the same name voluntarily increased wages and salaries in the summer by five and ten percent each. “In our view, this is better than one-off payments in the long run,” Honeder says. Nevertheless, the people in Engerwitzdorf are investigating whether a living premium could make sense in individual cases.
This is what you need to know about the living premium:
- What is the benefit of the premium? Supplements and bonus payments by the employer are tax-free up to 3000 euros per year. There is therefore no social security and no additional wage costs.
- How long can the living premium be transferred by the employer? It has been decided for 2022 and 2023. The untaxed maximum amount of 3000 euros is the maximum for the maintenance premium and profit sharing.
- What do companies that have already paid their employees a tax-free profit-sharing scheme do? These farms may consider the 2022 profit sharing retrospectively as a cost of living premium. The living premium is cheaper compared to the tax law.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
