The government is proposing this Thursday to the social partners to regularly update the income levels of the IRS in 2023 based on the salary increase of 5.1%, in order to ensure the tax neutrality of the salary updates.
The measure is part of the government’s proposal for a medium-term agreement to improve incomes, wages and competitiveness, which Lusa had access to and which will be discussed today in the social dialogue, to ensure that some measures are already part of the proposal to the national budget for 2023 (OE2023) that will be presented to the House of Representatives on Monday.
The document provides for the “2023 update of income tax levels (IRS) based on the criterion of nominal increase in compensation per employee (5.1%), ensuring the principle of tax neutrality of subsequent salary updates, with the regular updating of the IRS scales”.
It also provides an approximation and, where possible, elimination of the difference between the IRS withholding tax and the tax due, moving towards a withholding system that ensures that pay increases translate into monthly net gains for employees”.
The executive is also proposing a reformulation of the operating rules of the minimum subsistence to make more progress for the IRS, “from a logic of final settlement to a logic of discount upstream, yielding an income of up to 1,000 euros per month and the distortion removes current tax rate on 100% of income directly above current RMMG [Remuneração Mínima Mensal Garantida]”.
The document also includes the creation of an incentive to return to the labor market, targeting the long-term unemployed, allowing partial accrual of unemployment benefits with wages paid by the employer.
The value of overtime increases from 100 hours and has a lower withholding tax
The management of António Costa also proposes to the social partners to increase the value of overtime from 100 hours per year, compared to the previous 120 hours, and to reduce the withholding tax by half of these overtime hours.
In the document handed over to the social partners on September 28, the government had proposed increasing the value of overtime hours from 120 hours, now reduced to 100 hours of overtime in the new version.
The value increases from 25% to 50% in the first hour or fraction thereof, from 37.5% to 75% per hour or next fraction, on working days, and from 50% to 100% for every hour or fraction, on working days. weekly rest, compulsory or additional, or on holiday.
“In addition, the IRS withholding interest will be halved in these extra hours,” the proposal for the agreement with the social partners also reads.
“The Collective Negotiation Arrangement Instruments containing provisions that are contrary to the legal framework laid down in this agreement have a transition period, until January 1, 2024, for the purpose of negotiating and amending these provisions,” the college proposes.
In the proposal, the government also foresees an update of the value of the food subsidy exemption to EUR 5.20, committing itself to “evaluate the model that determines the exemption and the value over the period of validity of the agreement.” “, that is, , , until 2026.
News updated at 17:56
Source: DN
