Shielding Temporary Workers from Excessive Obligations: DGB Initiative
Headline: German Trade Unions Push for Tax Relief for Short-Time Workers
In the ongoing struggle due to the coronavirus crisis, the German Trade Union Confederation (DGB) is advocating for support for employees enduring income losses from short-time work. As Stefan Körzell, DGB board member, put it, "Those taking significant hits to their income from short-time work shouldn't also be grappling with tax payments." Körzell and DGB chairman Reiner Hoffmann have appealed to Federal Finance Minister Olaf Scholz and members of the Finance and Labour and Social Affairs Committees of the Bundestag for immediate action.
The hospitality industry, a sector already feeling the brunt of the crisis, could face further hardships. Körzell stressed, "Here, the lawmakers must take action." The DGB duo has also requested relief for employees in low-wage sectors who might be confronted by increased tax rates due to short-time work benefits being considered in the progression allowance calculation.
This progression allowance can lead employees on short-time work to face additional payments to the tax office due to an increased tax rate. To prevent this, Hoffmann and Körzell propose solutions such as a time-limited suspension of the progression allowance or a tax-free allowance of 6,000 euros related to the progression allowance. Alternatively, they bring up the Bundesrat's previous discussion about a tax-free allowance as a possible option.
Though the number of short-time workers has dropped from the high of 5.95 million in April to 4.24 million in July, according to preliminary data from the Federal Employment Agency, it's clear that more needs to be done. The DGB's call to alleviate the burden on affected groups comes at a crucial time, as the nation continues to navigate the economic impacts of the pandemic.
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- In light of the ongoing struggles caused by the coronavirus crisis, the German Trade Union Confederation (DGB) has appealed to the Federal Finance Minister Olaf Scholz, as well as members of the Finance and Labour and Social Affairs Committees of the Bundestag, to consider relief for employees in low-wage sectors who might face increased tax rates due to short-time work benefits being considered in the progression allowance calculation.
- The DGB, led by Reiner Hoffmann and Stefan Körzell, has suggested solutions such as a time-limited suspension of the progression allowance or a tax-free allowance of 6,000 euros related to the progression allowance to prevent additional payments to the tax office due to an increased tax rate for short-time workers, as the hospitality industry, already felt the brunt of the crisis, could face further hardships.
