Overtime & Premium Relief (Überstunden & Zuschläge, §68)
Definition
§ 68 EStG makes certain premiums income-tax-free through two separate pots: para 2 for regular overtime premiums (the first 15 overtime hours a month, up to 50 % of the base wage, capped at € 170/month) and para 1 for Sunday, holiday and night work (SFN), related overtime premiums, dirt/hardship/hazard allowances (SEG) and holiday-work pay in a shared pot of € 400/month (€ 600/month for predominantly night work).
Tax-free is not SV-free
The § 68 tax exemption says nothing about social insurance. This distinction is the most common misconception:
| Premium | Income tax | Social insurance |
|---|---|---|
| Overtime premium (para 2) | free up to € 170 | fully liable |
| SFN premium (para 1) | free within € 400 pot | free while tax-free |
| Dirt allowance (para 1) | free within € 400 pot | free while tax-free |
| Hardship/hazard allowance | free within € 400 pot | fully liable |
For SI the dirt-allowance exemption follows the tax exemption; hardship/hazard allowances and all overtime premiums remain fully liable. Municipal tax and the employer FLAF contribution apply to all § 68 amounts anyway.
See also
- Lohnsteuer, how the tax-free part reduces the tax base.
- SV-Beitragssätze, which contributions apply to which pay.
- Laufende und sonstige Bezüge, premiums count as regular pay.
Sources: § 68 EStG (RIS), BGBl. I Nr. 4/2026, § 49 ASVG, ÖGK-Beitragsrecht 2026.