Dear Clients,
In previous years the Austrian tax system offered e. g. the ‘inflation bonus’ (2022 and 2023) and the ‘previous employee bonus’ (2024) – to a maximum of EUR 3,000 per employee and per year - which were income tax free and free of payroll related taxes. ‘Gross for net’ was very popular with both employees and employers. From 2025 onwards, there will only be a ‘slimmed down version’ up to a maximum of EUR 1,000 per employee and per year, which is exempt from wage tax but subject to payroll related taxes and social security contributions.
Key points of the employee bonus 2025
Allowances and bonus payments granted by the employer to one or more employees in the 2025 calendar year for objective, business-related reasons are tax-free for the individual employee up to EUR 1,000 (employee bonus) if these are additional payments that have not usually been granted in the past.
They do not increase the annual sixth (Jahressechstel) and are not counted towards the annual sixth.
If a “profit share bonus” (§ 3 (1) point 35 EStG) and an employee bonus are both paid in the 2025 calendar year, the profit share bonus is only tax-free up to a total of EUR 3,000 for the calendar year including the employee bonus.
If the employee receives more than EUR 1,000 in employee bonus or a total of more than EUR 3,000 in employee bonus and profit share bonus tax-free in the calendar year, the taxpayer is obliged to file an income tax return in order to tax the non-tax-free part with the normal Income tax rate.
There is no legal necessity to obey a wage-setting regulation (e.g. collective agreement).
The previous employee bonus 2024 and inflation bonus 2022/2023 were not only exempt from income tax – there were also exemptions concerning the social security contributions and the payroll related taxes. This is no longer the case with the 2025 employee bonus. It is subject to social security contributions and payroll related taxes.
Conclusion
Although the 2025 employee bonus is not bound by any wage-setting regulations (e.g. collective agreement) and the ‘tax group characteristic’ is not required, there must be ‘objective, business-related reasons’ for the selection of personnel and for differences in amounts. It can be assumed that, in the event of a payroll tax audit, this imprecise legal wording will lead to discussions.
If there is different treatment in your company with regard to the 2025 employee bonus for the employees concerned or with regard to the amount of the bonus, we recommend that you prepare appropriate documentation on the ‘objective and business-related reasons’.
Best regards
Manfred Gross
Vienna, September 2025
