Changed application of the one-fifth rule in the wage tax deduction procedure
Since January 1, 2025, the application of the so-called fifth rule in the wage tax deduction procedure has been abolished. Why was the procedure abolished? Simplification: Employers should have less administrative work. Shift to the tax return: In future, the regulation can only be applied via the annual income tax return. Effects on employees Avoid gross-net shock: In the case of one-off payments (e.g. severance payments), the first payslip can be
