Fiscal exemption for casual workers in the fruit and vegetable cultivation annulled by the Constitutional Court

The Constitutional Court has recently annulled the tax advantage for casual workers in the fruit and vegetable sector. This decision, which is retroactive to 1 January 2024, marks the provisional end of the tax exemption that was introduced in 2023 to offset the increase in the minimum wage in this sector.

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Tax Exemption as Compensation

On 1 July 2023, a tax exemption was introduced to compensate for the increase in the minimum wage for casual workers in the fruit and vegetable sector (PC 145.050 and 145.060). This exemption amounted to €1.27 per hour worked (amount for the income year 2025).

The measure was initially temporary, set to expire at the end of December 2023, after which it was intended to be permanently extended from 1 January 2024.

Non-compliance with Notification of the Measure to Europe

While the temporary measure applied to employment agencies, the permanent measure (effective from 1 January 2024) applies only to employees directly employed by fruit and vegetable companies.

The employment sector challenged the tax exemption before the Constitutional Court. The Court ruled in favour of the temporary employment sector, justifying its decision by stating that granting a tax benefit to a specific sector constitutes state aid. This measure was required to be notified to the European Commission, which did not occur. Consequently, the tax exemption was annulled retroactively to 1 January 2024.

What Does Securex Do for You?

If this tax exemption is applied in your company, Securex will stop calculating this benefit from now on.

What About the Past?

The FPS Finance announces that the exemptions must be repaid to the tax authorities. To this end, the General Administration of Taxation will soon contact all affected taxpayers in writing with more information about the practical arrangements for this repayment.