Inflation: NEOS demands reduction in surcharge costs

Due to inflation, NEOS demands a much larger reduction in non-wage labor costs than the turquoise green government envisages.

Austria dropped to 20th place in the international IMD competitiveness rankings. According to NEOS, it is more necessary than ever to reduce labor and production costs in Austria, as well as to increase the net income of employees.

Inflation: NEOS calls for significant reduction in non-wage labor costs

A current study carried out by the economic research institute “Economica” on behalf of NEOS shows that at least 8.9 billion euros will be required to reach the EU average. “The contribution adjustments announced by the government only ensure that the tax rate does not increase further, but do not reduce the tax burden. Austria certainly remains a high-tax country. However, it is necessary to achieve lasting success, especially in the current situation. To achieve this, relief through sustainable structural reforms”, APA He criticizes NEOS in his statement to .

The cost of surcharges in Austria is higher than the EU average

According to the research, the amount of non-wage labor costs in Austria and therefore the cost burden on companies is three percentage points of GDP above the EU average. This corresponds to approximately 12.5 billion euros. Not only entrepreneurs but also employees will benefit from the decrease in non-wage labor costs. But reducing surcharge costs by only 0.3 percent, as the federal government proposes, is too little.

Loacker calls for reduction in employee contributions

NEOS business spokesman Gerald Loacker calls for reducing various employee contributions, including reducing the contribution to the family burden equalization fund (FLAF) from 3.9 to three percent, abolishing local tax, reducing pensions, among other things. The insurance contribution was increased from 12.5 to 11.4 percent, and the unemployment insurance contribution was increased from 3 to 2.3 percent. Overall this would result in relief of almost nine billion euros.

High non-wage labor costs are a huge burden for companies

“High non-employee wage costs represent a huge burden for Austrian companies, especially SMEs. They represent an international competitive disadvantage and therefore sustainably harm Austria as a business location. The research shows that billions of dollars are lost, especially for non-employee shows that savings can be made on non-employee wage costs without any loss of performance for employees, Loacker says.

(APA/Red)

Source: Vienna

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