Tax exemption for overtime: Men benefit, women lose out

At first glance, the planned tax exemption for overtime pay sounds like a relief for everyone—but it is not really distributed fairly. A new study by the Institute for Employment Research (IAB) shows that it is mainly the male part of the population that benefits from the plan.

The reason: the regulation only applies to full-time employees who are men. Women are more likely to work part-time. Overall, male employees are currently four times more likely to benefit from the reform than women. In addition, statistically speaking, men work more overtime and therefore benefit significantly more from the new regulation. Women, on the other hand, are less likely to exceed the ten-hour mark per day, which is also due to the additional care work they perform in the family environment.

Instead of promoting equality, the tax exemption would thus reinforce traditional role patterns. The potential consequences of the reform are therefore at odds with the gender equality policy goal of increasing the amount of work women do, as the Tagesspiegel notes.

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