Frankfurt am Main – Cross-border commuters will soon no longer be tax-disadvantaged in the Franco-German region. Affected employees who were on short-time work can now even hope for retrospective payments in some cases.
One year after a ruling by the Federal Social Court, cross-border commuters in France and Germany are no longer required to pay double tax on their short-time work benefits. Federal Labor Minister Hubertus Heil has now promised the IG Metall trade union that.
Hans-Jürgen Urban, executive board member of IG Metall: “Thousands of cross-border commuters are finally getting justice. After successful pressure from IG Metall and cross-border commuter organizations, you can hope for an additional payment and legal certainty in the future.”
The reason for the previous injustice is that the tax is already taken into account in the German short-time work allowance. However, employees living in France had to pay tax on this income again. In a metal and electrical company, it cost her up to 20 percent of the short-time allowance.
Federal Minister of Labor Hubertus Heil has now promised IG Metall a change in practice by the Federal Employment Agency. From December, notices of short-time work benefits sent to cross-border commuters in 2021 and 2022 will be checked and corrected.
Affected employees do not have to take action themselves. You will receive your back payment through your payslip. IG Metall members can contact their offices in the region for advice.