With the increase in food subsidies for government employees announced this Friday by the government, the limits that are exempt from the IRS in the private sector will also rise.
Thus, the food subsidy will be tax-free up to 6 euros (instead of the current 5.2). For employees who receive it through a meal card, the exempt amount increases from the current €8.32 to €9.6 (according to tax law, when payment is made by card, only the amount that “exceeds by 60%” the legal limit)
The measure “ultimately will affect not only employees of the public administration, but also all employees of the private sector, whose tax exemption is limited to 5.2 euros,” the finance minister confirmed. “This increase to 6 euros also increases the tax exemption for all private sector workers.”
At a press conference to present the new measures, which include an additional 1% pay rise for civil servants, Fernando Medina also said that the IRS tables need to be adapted.
“We are working on a solution so that this increase” through the retention table does not reduce net income, ”the Minister of Finance assured.
Author: business magazine
Source: CM Jornal
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