The new year brings a number of changes in wage tax and social security law. What do you have to bear in mind in 2022? We have summarised the relevant changes for you.
- Increase in the minimum wage
- Minimum remuneration for apprentices
- Employer subsidy for deferred compensation
- Reporting of tax identification number for marginally employed
- Insurance status of short-term employees
- Electronic certificate of incapacity for work
- Tax-free remuneration in kind
Changes 2022 – an overview
New minimum wage
The minimum wage per hour has been EUR 9.82 since 01 January 2022 (maximum 45.8 hours of monthly working time for minijobbers) and will as it stands today be increased to EUR 10.45 (maximum 43 hours of monthly working time for minijobbers) from 01 July 2022.
What needs to be considered?
- Minijobbers may not exceed the new monthly working hours.
- Employees must confirm the hours worked monthly via the time sheet.
- The time sheet is requested during social security audits and checked for accuracy.
Minimum remuneration for apprentices
In addition, a minimum wage has been set for apprentices in companies not bound by collective agreements.
- In 2022, this will be EUR 585 for the 1st apprenticeship year. As things stand, this minimum remuneration will be raised by EUR 35 per year.
- The apprenticeship remuneration will increase by 18% from the 2nd apprenticeship year, by 35% from the 3rd apprenticeship year and by 40% from the 4th apprenticeship year.
- These percentages refer to the minimum remuneration of apprentices in the first apprenticeship year.
Mandatory employer subsidy for deferred compensation in the company pension scheme
Since 01 January 2022, the employer has been obliged to pay an additional 15% of the converted remuneration as an employer’s allowance whenever remuneration components of an employee’s occupational pension scheme are converted, insofar as the employer saves social security contributions through this conversion of remuneration. However, this regulation only applies to payments into a direct insurance, a pension fund or a Pensionskasse.
It must therefore be clarified with the responsible insurer whether the subsidy of 15%
- can be paid into a new insurance contract,
- is to be paid into the existing insurance contract in addition to the deferred compensation
- or whether the total amount of the payment will not change.
Normally, the employer’s agreement with the insurance or pension institution changes, or there is a change in the deferred compensation agreement with the employee.
Existing insurance policies of the employees must now be checked to see whether the compulsory allowance has already been paid. If the employer has not yet paid the subsidy, he must clarify how the employer’s subsidy is to be paid in the future and what contractual changes are required for this.
Reporting the tax identification number of marginally employed workers
From 01 January 2022, the DEÜV remuneration reports (Datenerfassungs- und –übermittlungsverordnung) must include the tax identification numbers.
This regulation applies to marginally employed persons who were already employed before 01 January 2022 and to newly employed persons equally. For a correct preparation of the DEÜV remuneration report, the payroll department therefore requires the tax identification numbers of all employed mini-jobbers and of the new marginally employed persons
Insurance status of short-term employees
In future, when registering a short-term employee, the employer must indicate how the employee is covered by health insurance for the duration of the employment. In case of illness, coverage must be guaranteed.
Electronic certificate of incapacity for work eAU instead of paper sick note
In future, employers are to be informed digitally about the beginning and duration of an incapacity to work of employees insured by the statutory health insurance. In 2022, this eAU will be introduced in several steps:
Doctors’ surgeries are now obliged to digitally transmit incapacity for work data to the health insurance funds as of 01 January 2022.
Even now, employers – who are technically equipped accordingly – can already retrieve the data on the beginning and duration of the incapacity for work electronically from the health insurance fund after reporting the employee’s incapacity for work. This data is made available electronically within 14 days of the employer’s query..
The eAU may be retrieved one day after the requirement for a medical certificate has been met. Therefore, in case of incapacity for work, it is important to check from which day the employees have to submit a certificate to the employer.
On 1 July 2022, the digital forwarding of AU data by the health insurance funds to employers is to start on a mandatory basis. Until then, a written certificate of incapacity to work will continue to be provided as additional proof for the employee.
Tax-free remuneration in kind
The exemption limit for tax-free remuneration in kind will increase from 44 euros to 50 euros per month as of 1 January 2022.