Aid package 2024: These are the most important measures for workers, employees, families and retirees in Austria

The 2024 aid package aims to give families in Austria more room to maneuver. These are the most important relief measures at a glance.

The Austrian Federal Ministry of Finance recently presented a comprehensive aid package for 2024 aimed at reducing the financial pressure on citizens. The focus of the measures is the adjustment of tariff limits and tax reductions, which are a direct response to the development of inflation and aim to benefit families in Austria in particular.

Learn more –>> Get the money back from the government

Increasing tariff limits and cuts

One of the important components of the package is increasing the taxable income limit. From 2024, taxpayers will only have to pay tax on income of 12,816 euros; This means an increase compared to the previous year (11,693 euros). The aim of this measure is to ensure that more citizens benefit from lower tax rates.

Likewise, tax cuts, including single-income and single-parent tax cuts, transport tax cuts, care tax cuts and pensioner tax cuts, will be fully adjusted for the inflation rate of 9.9 per cent. The purpose of this regulation is to account for increased living expenses and allow taxpayers to claim these amounts through employee assessment if they are not automatically taken into account through payroll.

Improvements for families

The developments especially for families with children are remarkable. The additional child benefit related to employee assessments for families with low or no income will increase to up to 700 euros per child from 2024; This is a significant increase compared to the previous 550 euros. In addition, family benefits are fully adjusted according to the inflation rate, which means direct financial aid to families.

Read more –>> Are you still middle class?

Another important change is the doubling of the tax-free employer subsidy for childcare from €1,000 to €2,000. This measure, together with tax incentives to encourage company kindergartens, aims to further improve the harmony between work and family.

Promoting increased performance and flexibility in working life

The aid package also includes measures to recognize and encourage additional performance in working life. The monthly overtime bonus allowance will be permanently increased from 86 euros to 120 euros, with a temporary increase to 200 euros for 18 hours of overtime per month for the next two years. Allowances and additional wages for difficult working conditions will also be increased.

Learn more –>> This bonus goes up to 300 Euros

The basic tax-free allowance for the self-employed increases from €30,000 to €33,000. In addition, the home office arrangement for employees will be permanently expanded, allowing ergonomically suitable furniture to be deducted from operating expenses.

Removal of cold advance

A key part of the package is the removal of the chilling advance, which leads to additional tax revenue if tariffs are not adjusted for inflation. This measure will save taxpayers more than €3.6 billion in 2024 and benefit up to 8 million people.

Read more –>> Fixed salary increase: 175 euros per month for these employees

The most important relief measures at a glance:

  • Increase in tariff limits: Tax liability on income of only 12,816 euros.
  • Adjusting deduction amounts: Full adjustment to the inflation rate of 9.9 percent.
  • Increase in additional child allowance: Up to 700 euros per child from 2024.
  • Setting the family allowance: Full adjustment to the inflation rate.
  • Doubling the employer subsidy for child care: From 1,000 Euros to 2,000 Euros.
  • Tax incentives for company kindergartens: Promoting work and family harmony.
  • Increase in overtime bonus allowance: Permanent increase to 120 euros, temporary increase to 200 euros for 18 hours of overtime.
  • Increase in allowances and surcharges: Up to 400 euros per month for difficult working conditions.
  • Increasing the basic allowance for the self-employed: Profit allowance from 30,000 Euros to 33,000 Euros.
  • Permanent extension of home office arrangement: Ergonomic furniture allows you to deduct advertising expenses.
  • Removal of cold advance: Savings for taxpayers of over €3.6 billion in 2024.

Calculation example 1

Using someone’s example employees in Vorarlberg with two children and monthly gross income 4,000 euros The measures will have the following effects.

Overview of the financial situation in 2024

The financial situation of a family with a monthly gross income of 4,000 Euros will be as follows in 2024:

  • Annual gross income: 56,000 euros
  • Social security contributions (SV): 10,039.20 Euros per year
  • Wage tax (LSt): 3,479.06 Euros per year
  • Net income: 42,481.74 Euros per year

The family can expect personal savings of €679 by eliminating the cold advance through the 2024 aid package. Total aid since this measure came into force has reached 1,059 euros.

Calculation example 2

With monthly gross income 1,500 euros emerges for someone retirees The following financial situation in 2024:

  • Annual gross income: 21,000 euros
  • Social security contributions (SV): 1.071,00 Euros per year
  • Wage tax (LSt): 133.62 euros per year
  • Net income: 19,795.38 Euros per year

With the 2024 benefit package, the retiree can expect personal savings of 311 euros by eliminating the cold advance. Total aid since this measure came into force has reached 492 euros.

Calculation example 3

Using someone’s example workers Monthly in Vorarlberg with B3,400 gross income euro and Two kids The effects of these measures have been demonstrated.

Overview of the financial situation in 2024

The financial situation of a worker with a monthly gross income of 3,400 Euros will be as follows in 2024:

  • Annual gross income: 47,600 euros
  • Social security contributions (SV): 8,533.32 Euros per year
  • Wage tax (LSt): 1,181.48 Euros per year
  • Net income: 37,885.20 Euros per year

With the 2024 aid package… workers By eliminating the cold advance you can expect personal savings of €557. Total aid since the introduction of this measure has reached 938 euros.

Calculation example 4

One employee with child in Vorarlberg and his monthly gross income 2,300 euros It should be emptied as follows.

Overview of the financial situation in 2024

The financial situation of an employee with a monthly gross income of 2,300 Euros will be as follows in 2024:

  • Annual gross income: 32,200 euros
  • Social security contributions (SV): 5,466.64 Euros per year
  • Wage tax (LSt): 194.30 euros per year
  • Net income: 26,539.06 Euros per year

Thanks to the 2024 benefits package, employees can expect personal savings of €630 by eliminating the cold advance. Total aid since this measure came into force has reached 1,001 euros.

Learn more –>> Go to BMF’s benefit calculator

(VOL.AT)

Source: Vienna

Facebook
Pinterest
LinkedIn
Twitter
Email

Leave a Reply

Your email address will not be published. Required fields are marked *