Resistance to tax-free overtime: Lindner's plan in danger

Resistance to tax-free overtime: Lindner's plan in danger

How the regulation for tax-free payment of overtime for employees will shape itself in the future is the subject of intensive discussions. Finance Minister Christian Lindner plans to allow overtime to be paid out tax-free in the future in order to create incentives for overtime. This measure is intended to stimulate the German economy. However, there are concerns about the potential impact on the way part-time workers work. Officials at the Treasury Department warn that overtime tax exemptions could create a loophole that allows part-time workers to earn more income from tax-free overtime than in a regular full-time job.

In order to prevent this potential abuse, Finance Minister Lindner is now planning a modification of the regulation, according to which only full-time employees will benefit from the tax-free overtime regulation. This is intended to avoid possible inequalities and complaints from part-time workers. When and in what form this new regulation will come into force is still unclear. Treasury officials express concern that such an arrangement could lead to legal disputes.

It therefore remains to be seen how the discussion about the tax-free payment of overtime for employees will develop and which regulations will ultimately be adopted. Employees should therefore keep an eye on developments in this area in order to be able to benefit from possible tax advantages. The exact number of overtime hours that may be accrued weekly is in most cases determined by law and should be taken into account by employers and employees alike.