Government workers will see at least a 1% boost in net income from IRS withholding in 2024, according to new tables released this Saturday.
“The income tax gains of these workers result in an increase in net income of a minimum of 1% and a maximum of 2.4% on a gross income of €2,000, which is in addition to the gross increase in wages,” the Treasury said. in the statement.
According to modeling carried out by Fernando Medina’s team, for example in the public administration remuneration base of the Unified Remuneration Table (TRU), the withholding tax increases from 3.44 euros per month in 2023 (applied to salaries of 769 euros per month), to 0.87 euros per month in 2024 (applied to a salary of 821.83 euros per month).
“In 2024, public administration employees will receive an income increase in two ways: a wage increase, determined as part of the strengthening of the Medium-Term Agreement on Increasing Income, Wages and Competitiveness, by at least 52 euros or 3%, and a reduction in the IRS, which will also affect the relevant taxes withheld at source,” the government emphasized.
The new income tax tables take into account the tax changes provided for in the 2024 state budget, namely the update of brackets by 3%, a reduction in tax rates, as well as an increase in the amount not subject to tax (the so-called minimum tax amount). existence) from 760 to 820 euros, in accordance with the 2024 national minimum wage.
These tables follow the model adopted from July 2023, in which withholding seeks to approximate the amount of tax each person actually has to pay.
For example, in the case of an employee with a gross salary of 1,650 euros and no dependents, the deduction is reduced from 282.24 euros in December to a deduction of 243 euros.
For pensioners and taking into account the planned renewal, the pension of 1,150 euros in 2023 increases to 1,214 euros in 2024. However, the monthly IRS withholding will be lower: in 2023, €117.64 was deducted, and from January €73.61 will be deducted.
The new tables apply to income received on or after January 1, 2024.
Author: Lusa
Source: CM Jornal
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