Thanks to the abolition of the cold progression, the Austrians will have a total of 3.6 billion euros more in 2024. How employees, workers and retirees will benefit in individual cases from January can now be found on the website finanzrechner.at. The “Crown” shows several examples.
With the new year, a warm rain of money will flow over Austrians: the increase in payroll tax rates (“abolition of the cold progression”) and measures such as increasing deductibles will bring us about 3.6 billion euros in relief in 2024. You can now quickly calculate how much more of your gross income you will actually have net from January on the website finanzrechner.at of the Viennese entrepreneur Bernhard Angeler (see graph). A few examples:
- Employees and employees with a gross salary of 2,000 euros per month received a net 1,567.04 euros in 2023 after deduction of payroll tax and national insurance contributions. In 2024 this will be 1,596.46 euros, an increase of 29.42 euros per month. Calculated over the entire year, the saving is 353 euros. In individual cases, the net increase may be even higher because various tax deductions have also been increased.
- Anyone who earns 3,000 euros gross will ultimately have an additional net income of 37.30 euros – or 450 euros per year. At 4,000 euros gross, that is 63.67 euros per month or 768 euros per year.
- Retirees will receive a pension increase of 9.7 percent from January 1 and will also benefit from the adjustment in tax rates. A gross pension of 2,000 euros increases to 2,194 euros. After deduction of taxes and social security contributions, there will be a net amount of 165.47 euros more per month left in 2024. Calculated over the year, there is a net increase of 2,332 euros. At finanzrechner.at you will find a practical pension calculator for individual calculations.
Of course, wages also rise sharply during collective labor negotiations. However, these increases will come into effect at different times depending on the sector; for metal workers, for example, this was in November.
Click here for the gross-net calculator.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
