The proposed state budget law for 2024, which has already been submitted to the Assembly of the Republic, increases the minimum subsistence to 11,480 euros. “The minimum subsistence reference value is equal to the highest value between 11 480 and 1.5 x 14 x IAS [1,5 vezes o Indexante de Apoios Sociais multiplicado por 14]” the document reads.
This increase guarantees that those who pay the national minimum wage (SMN), which will rise to 820 euros next year, do not pay personal income tax (IRS).
The subsistence minimum is a way to guarantee taxpayers a minimum of tax-free income. For this year, the minimum wage was set at 10,640 euros, to make a minimum wage of 760 euros possible in 2023. If the value did not increase by 2024, whoever earned the new SMN would eventually have to pay IRS.
Source: DN
