Taxes: Purchasing Power Protection Bonus
The 2025 purchasing power protection bonus in the metal industry can be paid out tax-free as a one-off bonus. Longer payments are considered a salary increase and are taxable.
Payroll Newsletter October 2025
Our regular update on all the latest developments in the payroll sector. This ensures that you and your company are always up to date.
Increase in housing subsidy
From January 1, 2026, Vienna will increase its housing subsidy contribution. This will lead to an increase in both social security deductions for employees and non-wage labor costs for companies.
Tax Exemption for Overtime
In a recent ruling (VwGH 29.07.2025, Ra 2024/15/0050), the Administrative Court significantly tightened the requirements for tax exemption of overtime bonuses ( § 68 EStG).
Maximum limit for tax-free overtime pay
The current tax relief for overtime pay will expire at the end of 2025, and the old limits are set to apply again— despite criticism and political discussions about a possible extension.
Payroll accounting values for the year 2026
In addition to the projected social security contribution rates for 2026 (minimum income threshold, maximum contribution base, etc., see August 2025 newsletter) and wage garnishment values for 2026 (see October 2025 newsletter), which have been known for several months, the remaining variable values for the 2026 calendar year are now gradually being announced:
Payroll Newsletter Archive
Discover our newsletter archive and stay informed about all topics related to payroll accounting and labor law. Here you will find all previous issues with practical updates and expert knowledge summarized in a compact format.