Labor allowances and tax reliefs under review in Slovenia and Austria

In Slovenia, labor unions are requesting significant increases in tax-free allowances for meals and commuting costs. Unions are proposing a 20 percent increase for the highest tax-free meal allowance and daily allowances, alongside a 15 percent increase for other employee-related costs. This demand stems from the fact that these rates have not been adjusted since 2022, while food prices have risen by approximately 18.7 percent over the last four years. Additionally, unions are seeking a 10 percent increase in tax bracket thresholds and tax reliefs. The Slovenian Ministry of Finance is currently reviewing these proposals.

In Austria, workers can access various financial aids and tax reliefs for commuting, with some potentially receiving up to 1,200 euros. A notable change includes the ‘Pendlereuro’, which is set to increase from two to six euros per kilometer starting in 2026 to reduce income tax for commuters. Regional variations exist; for example, in Lower Austria, workers may receive up to 1,000 euros in ‘Pendlerhilfe’, which can reach 1,200 euros with an ecological bonus for using public transport. Other provinces like Carinthia and Upper Austria offer varying levels of support based on distance and income levels.