IRC cuts benefit 110,000 companies

According to CM, from the extension of the application of the IRC rate of 17% to the first 50 thousand euros of profit. In practice, this measure leads to a drop in IRC. Companies that raise wages will also have a drop in IRC, which is enshrined in the agreement.

Lowering the IRC for companies was one of the measures the prime minister highlighted in his speech this Sunday following the signing of the agreement.

At a geopolitical moment marked by unpredictability and high inflation, Costa stressed that “this agreement is a milestone” and “the start of a journey.” The Prime Minister also stressed that the injection of money into the electricity and gas supply systems “is a major effort that the state is making.” The measure will reduce the cost of electricity. On October 15, the Energy Services Regulatory Authority (ERSE) will announce savings from this measure.

Farmers to receive 10 cent support for agricultural diesel fuel
Farmers will receive a support of 10 cents for every liter of agricultural diesel consumed in the previous year. Although the agreement has already been signed, this measure will apply throughout 2022. A total of 145,000 farmers are covered.

Civil servants now have a maximum salary of 6,555 euros.
The highest salary in the field of public administration from January 1 next year will be 6555 euros. The new amount is included in the unified wage table (included in the draft decree-law on updating the wages of civil servants for 2023, which the Government has already submitted to trade unions.

The new version of the table already includes the salary increase proposed by the government for 2023 and the €52 salary supplement due to senior technicians in the 3rd and 4th paid positions in their respective careers. The document to which CM had access shows that after the increase in the national minimum wage in recent years, the first five positions in the table have no value, and the 6th position corresponds to a wage of 809.13 euros.

As a result of the increase proposed by the government, in 2023, civil servants will start receiving, starting from the 105th salary position, a salary equal to or greater than 6,024 euros. Salary 6555 euros corresponds to the rector of the university

The government has proposed differential wage increases in the state. For example, approximately 124,000 employees with the lowest income will receive an 8% increase, and salaries above 2,600 euros will be updated by 2%. José Abraao, general secretary of the Federation of Public Administration Trade Unions (Fesap), hopes the government can improve on the proposal.

Salary and taxes are the basis
The income agreement has one of its pillars in wage increases and tax cuts. It is planned to increase the weight of wages in GDP to 48.3% in 2026. It is also expected to apply a large progressive taxation scale to income and lower IRS withholding rates.