Maximum limit for tax-free overtime bonuses ( § 68 (2) EStG) from 2026
Maximum limit for tax-free overtime pay
According to current information, there are no plans to extend the special regulation for tax exemption of overtime bonuses applicable in 2024 and 2025 ( § 124b Z. 440 lit. b EStG: up to 18 hours of overtime, maximum € 200.00 per month).
If there are no further changes to the law in this regard, the following monthly limits will apply from January 1, 2026, in accordance with § 68 (2) of the Income Tax Act (EStG):
- a maximum of 10 overtime bonuses at 50%,
- up to a maximum of €120.00.
Critical comment: There are currently isolated political discussions as to whether the extended tax exemption for overtime bonuses could possibly be extended beyond 2025 by means of a “last-minute law.” However, well-informed circles say that the finance minister categorically rejects such an extension. This is very regrettable when one recalls the government program, which stated, among other things:
- “Work and performance must always be worthwhile ... In order to create clear performance incentives and increase the number of hours worked in Austria, the federal government is committed to providing greater tax benefits for overtime and bonuses.”
Against this background, the finance minister's rejection of the continuation of the more generous maximum limit for tax-free overtime bonuses is difficult to understand.