Finance minister plans tax-free overtime

Finance minister plans tax-free overtime

Finance Minister Christian Lindner is aiming to make overtime tax-free for employees in order to stimulate the German economy. This measure is intended to serve as an incentive to work more hours and thus increase the volume of work. However, this proposal was met with concerns and resistance. Treasury officials are warning of a possible loophole that could allow people to work more part-time while accumulating tax-free overtime.

To avoid potential disadvantages, Lindner may plan to modify its original regulation. It is being considered that only full-time employees should benefit from the tax exemption for overtime in order to prevent possible unequal treatment of part-time employees. The exact implementation and timing of the regulation are still unclear as concerns remain about possible legal consequences.

This potential new regulation could offer employees the option to benefit financially from additional hours worked if they are paid out tax-free in the future. However, it remains to be seen how the discussion and implementation of this measure will develop, particularly in view of potential complaints from part-time workers who may feel disadvantaged. The exact regulations regarding the maximum number of overtime hours per week vary depending on the company and collective agreement.