Changes to public holiday pay

We would like to inform you about an important legal change that affects the tax treatment of holiday pay. These changes concern all companieswho work on public holidays and who do so in their digital time recording or Payroll accounting take into account.

What has changed?

The Federal Fiscal Court in a decision dated December 19, 2024 (BFG 19.12.2024, RV/3100544/2017) clarified that the Holiday pay (i.e. the basic hourly wage for work on public holidays) No tax-free public holiday allowance is no longer. Instead, this Holiday pay as Taxable wages treated. This decision has an impact on the tax treatment of working hours on public holidays and must now also be taken into account in the Payroll accounting and Time recording be mapped correctly.

The Federal Ministry of Finance (BMF) has now adopted this new legal opinion. However, due to many years of administrative practice to the contrary and the information previously provided to employers and interest groups, the regulation will not be implemented until the end of the year. as of December 19, 2024 implemented. This means that companies only have to apply this regulation from this date.

What changes does this involve?

This change primarily affects all collective agreementsin which so far Tax-free public holiday bonuses were provided for. Companies must now ensure that the wages paid for public holiday work are recognized as Taxable wages is treated. This applies to almost all sectors in which public holiday work is performed, such as:

• Industry and trade
• Healthcare
• Trade and services
• Hospitality and tourism
• Transportation and logistics

What does this mean for your digital time recording?

For many of our customers who use our Digital time recording use, this change means that a Adjusting the settings and Configurations may be necessary. Previously, the public holiday bonus may have been treated as a tax-free amount - this must now be adjusted in the software so that the public holiday pay is correctly treated as a tax-free amount. Taxable wages is calculated.

From calendar year 2025, we recommend that you use the New perspective and, if necessary, to review and adjust the settlement for January and February 2025. This may also reduce the need for Recalculations and Korrekturen in den Lohnabrechnungen für diese Monate mit sich bringen.

Warum ist die Anpassung wichtig?

Durch die Anpassung stellen Sie sicher, dass Ihre Payroll accounting and Time recording in Übereinstimmung mit den neuen steuerlichen Vorgaben stehen. Andernfalls könnte es zu Fehlern bei der Steuerberechnung und in der Payroll accounting kommen, was in der Zukunft zu Nachzahlungen oder Korrekturen führen könnte. Eine frühzeitige Anpassung vermeidet diese Komplikationen und sorgt für eine reibungslose Abrechnung.