Let's make performance modern again! Let's rediscover work as meaningful – and reward and remunerate our high performers accordingly. We've summarised how this could work for you in this article with five ideas.
Proposal 1: Overtime pay must be tax-free – and remain so.
86 Euros – that's the maximum that working people can receive per month tax-free for overtime. Although there were calls at the beginning of the year to increase this to 200 Euros, the maximum limit has not actually been adjusted for a decade. Even though the general conditions have changed massively: With an average age of 83.7 years, women have become about 15.9 years older since 1951, and by 2080 they are expected to live to an average of 92 years. The demographic development for the other sex is similar: currently, the average life expectancy is 78.9 years. Since 1951, it has increased by 16.5 years, and by 2080, men are expected to live about ten years longer on average. At the same time, Austria's birth rate has been negative since 2020. Without immigration, Austria would actually shrink.
The bottom line is: our society is ageing massively, there's a lack of young people.
Working less is therefore not an option – on the contrary: given demographic changes, it is essential that we actually have to work more. To strengthen the commitment of employees and at least maintain the general prosperity of our society, new incentives are needed – such as the introduction of tax-free overtime for employees. People who work overtime show that they are willing to go above and beyond to get their job done. This extra effort should be rewarded with tax benefits.
Furthermore, overtime cannot be avoided in many cases anyway. In sectors like healthcare, security or disaster relief, workers often have to work overtime to meet society's needs. These people deserve to be rewarded – not punished – for their dedication to the community.
Proposal 2: Tiered social benefits
Without a doubt: the welfare state in Austria achieves a great deal – which is why we stand up for it. We support the fundamental idea that people benefit from welfare state services to varying degrees – depending on their life and income situation. For us, however, it is crucial to understand the reasons why these life circumstances and income situations have come about.
In other words, people who forgo full-time employment for reasons of personal comfort, thereby earning less income and consequently contributing less to the social system, should have this taken into account when distributing social benefits.
Our consideration aims to make the social system fairer and ensure that those who are able to contribute to the welfare state do so appropriately. This not only protects the long-term financial stability of the system but also promotes a sense of responsibility and the incentive to fully participate in the labour market.
However, at the same time, we recognise the importance of ensuring that those in need continue to receive the support they require to improve their quality of life and cope with difficult life circumstances.
Proposal 3: The tax-free inflation bonus must remain.
Employers can pay employees tax-free up to €3,000 in 2022 and this year due to record inflation and the resulting massive price increases. So far, so understandable: Less comprehensible, however, is the fact that this measure is once again marked with an expiry date.
For one thing, it would be short-sighted to assume that the economic challenges caused by inflation will be resolved within a limited timeframe. For another, a sustained inflation premium could help to stimulate the economy. It provides working people with additional income that they can invest in the economy.
Furthermore: Even if inflation subsides, the need to motivate employees and maintain their willingness to perform will remain. In our experience, this can be achieved with a tax-free distribution to employees.
Proposal 4: Increase in the value of food vouchers.
The current option for employees to receive tax-free food vouchers is undoubtedly a welcome support in times of economic challenges. This benefit not only serves to alleviate the financial burden on working people but also contributes to keeping value creation within the country.
However, the question arises as to whether this allowance should not be made more generous. Why are we limiting ourselves to two euros per day attended? An exemplary increase of this tax-free allowance to double, i.e. around 80 euros per month, could make a truly noticeable contribution to the financial relief of people and create even more financial leeway in economically tense times.
Conversely, an increase would further promote domestic value creation: By being able to spend more money on food, people support local businesses and contribute to strengthening the domestic economy.
Suggestion 5: Let's make work modern again.
The search for fulfilment in one's career seems less popular these days. On the contrary, Monday mornings are often portrayed as an unpleasant time, while the work-free weekend is seen as the highlight of life. Travel and holidays, especially those that lend themselves well to social media, are becoming a kind of new currency. People who work a lot, and perhaps even enjoy it, are often viewed critically or even ridiculed. Another problem is that many people in our affluent society are no longer forced to step out of their comfort zones and push their performance limits.
What we urgently need is a rethink: work should be seen as an opportunity to find fulfilment. It should be viewed as a chance to give life meaning, regardless of political viewpoints, but rather as a question of attitude towards life. This is because creating, producing or designing can lead to satisfaction and pride, and even spark curiosity. This is more important today than ever before, as the willingness for lifelong learning has become a key qualification in the face of labour shortages.
To encourage this change of mindset, incentives are needed. Work does not, and cannot, always take place on your doorstep. People who accept jobs despite long distances should be rewarded. This could be through an increased commuting allowance, which was introduced in response to inflation and has now, to our bewilderment – despite fuel prices rising again – been suspended.
At the same time, the state must also impose sanctions: activities that serve the common good should be considered as a serious option for the long-term unemployed.
Above all, however, we should not regard work as an unavoidable burden, but rather as an opportunity for a meaningful and better life.
