The amount from which salaries withhold IRS increases in January to 820 euros, with a monthly net income gain of about 28 euros, according to the new tables published today.
“Those who earn the minimum wage, which in January rises to 820 euros, will not pay IRS, so they will not be subject to withholding taxes. For this amount, the monthly net income gain compared to last year will correspond to about 28 euros per month (392 euros per year),” the Ministry of Finance said in a statement.
The new tables for next year were designed to accommodate the changes to the IRS contemplated in the State Budget for 2024 (OE2024), namely the new rules of the minimum of existence and the changes to the brackets.
In the case of pensions, according to simulations carried out by the Government, an unmarried pensioner with a pension of 900 euros per month will have a reduction at source of 49%, which corresponds to an increase in net income of 25 euros per month.
The ministry led by Fernando Medina stressed that the new tables ensure “that an increase in gross income corresponds to an increase in net income.”
The new model includes a reduction from 16 to 11 tables, maintaining in force the withholding tax model applicable to employment income (Category A) and pensions (Category H) implemented in the second half of 2023.
Samantha Gannon
info at madeira-weekly.com
