Tipping: New regulation brings social security and transparency

The federal government has agreed on a new regulation of the lump sum for tips. The new Austria-wide lump sum is 65 euros for service staff with debt collection. In 2027 and 2028, these lump sums will rise to 85 and 100 euros. For employees without collection who receive tips, a flat rate of 45 euros will apply in the future, which will be increased to 50 euros in 2028. From 2029 onwards, valorisation will be carried out annually.

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10 things tourism workers should know about the new tipping policy:

• Whether you work in Vienna or in Salzburg,
  the regulation is easy to understand and the same for everyone. 
• Does your tip exceed the amount of the tip allowance?
  No problem, in the future no additional payments will have to be made to the social security system. The so-called "opening clause upwards" will be abolished in all federal states.
• Do you get less tips than the tip allowance?
  No problem, then you can request that you only have to add the amount actually received to your gross salary instead of the lump sum for the calculation of your social security contribution. 
• Do you work part-time?
  No problem, the tip flat rate depends on your weekly hours and will be reduced accordingly.
• You still have a score to settle with the ÖGK due to the former opening clause upwards?
  We have ensured that additional demands from the ÖGK are repaid and that employees do not have to fear bad news. 
• You think tipping belongs to the employees and should therefore be tax-free?
  With the new regulation, the tax exemption of tips is secured.
• With the new regulation, your social security contributions will increase. Above all, however, this will give you better social security:
  According to the calculations of the ÖGB, your pension entitlement will increase by around 27 euros per month (14 times) after 30 years, sick pay by around 41 euros per month and even in the event of unemployment, you will receive around 22 euros more in unemployment benefits per month in the future with a previous gross monthly salary of 2,700 euros.
• Your employer must also continue to pay a social security contribution
  and thus participate in the protection of pensions, sickness benefits and unemployment benefits. 
• More transparency for you!
  With the new regulation, you have the right to ask your boss about the amount of the tip received by card payment. This ensures that the employer does not embezzle a tip from you.
• In the case of internal redistribution systems (tronc systems), the type of distribution must be disclosed by the employer. This, too, offers you insight!