Strike money
Strike pay is a contribution paid by trade unions to striking workers for wages lost during a labor dispute.
description
Entitlement to wages is suspended during a strike . To replace this, unions set up a strike fund to provide compensation to striking union members.
Strike money is not an insurance, but a solidarity support service and therefore usually does not fully compensate for the net loss of earnings. Most unions calculate the strike pay on the basis of the monthly membership fee, which in turn is usually dependent on regular gross earnings. The difference between regular net earnings and strike pay therefore depends on the member's individual wage tax deduction features.
Legal
In Germany, strike money is neither considered income nor compensation . Therefore, it is not subject to income tax .
According to a decision by the Federal Ministry of Finance, it is also not subject to the so-called progression proviso .
Web links
- BFH judgment of October 24, 1990 (XR 161/88) BStBl. 1991 II p. 337 ("Strike support is not subject to income tax")
- Right to strike at ver.di
Individual evidence
- ↑ Are strike money taxable? ver.di , May 24, 2013, accessed on November 4, 2014 (judgment on income tax liability for strike money).