The lowest salary in the state, which will increase by 1% in May to 769.2 euros gross per month, will even be deducted from the IRS and even the new tables that come into effect in July do not release these officials from the obligation to advance the I pay part of the remuneration. Nevertheless, the new model gives some relief, but only 1.18 euros per month, as it implies a retention of 4.62 euros over the next two months, which will decrease to 3.44 euros from the second semester.
The Dinheiro Vivo calculations, based on the IRS tables for June and May and the new regime for the second half of the year, were performed for a case of a single worker without children and without taking into account the contribution to social security. certainty, of 11 % (see simulations). This caveat is important because the regime that will be in effect from July will be more favorable to those who have dependents. For example, an employee who earns the Public Administration Remuneration Basis (BRAP) of EUR 769.2 with a child, even if he is not married, is already exempt from withholding tax.
Yet it is the first time that BRAP has started withholding IRS, also because the entry salary has been deducted from the national minimum wage, which is 760 euros this year. But before it knew that the civil service would be entitled to the additional 1% increase, BRAP, which amounted to €761.58, was also higher than the guaranteed minimum salary and did not have to withhold at source, because the exemption was €762. amounted. euros.
In May, when the 1% increase is paid, the tax authorities will apply new IRS tables that extend this withholding tax exemption limit to 765 euros gross per month. Still, it remains below the entry salary of EUR 769.2, so employees in this wage position will have to withhold EUR 4.62 per month and leave with a net salary of EUR 764.58, EUR 3.3 above the current salary of EUR 761.58 .
Exemption ceiling reduced from 765 to 762 euros
From July, a new regime will come into force, according to a marginal rate logic, in accordance with the brackets taken into account for the annual assessment of the tax, which will lead to a reduction in withholding. There is even relief, since these approximately 124 thousand employees, 16.4% of the universe of 742 thousand civil servants, now retain 3.44 euros, 1.18 euros less than in May and June, giving a net salary of 765.76 euros, 4.18 euros more than the current salary. But BRAP did not adjust the exemption ceiling. On the contrary, it goes down again and comes to 762 euros. It should be noted that this limit applies to public and private sector employees and retirees.
The Treasury Department has not yet explained to Dinheiro Vivo the reasons that led the government to keep the maximum withholding exemption limit below the lowest salary in the state, or whether it plans to adjust that threshold again in the future. Until the end of the edition, the guardianship led by Fernando Medina had not yet answered the questions asked.
It’s important to remember, however, that once these workers start withholding, they’ll also be entitled to deductions for general expenses next year, covering health care, education, and housing rentals, when it’s time to file the IRS return. to fill in. , a possibility they were forbidden because they did not give a discount. This means that they now advance the tax to the State, but may be eligible for a refund in 2024.
Those who will receive 908.77 euros gross monthly from July will have the largest net profit: 22 euros more per month compared to April and 14 euros more compared to June.
Analyzing remuneration levels above the BRAP, it appears that the largest withholding tax gain from July benefits the fourth remuneration position, which increases by 1% or EUR 9 in May from EUR 899.77 gross monthly to EUR 908.77. For example, from the second half of the year, retention decreases by EUR 14.2, from EUR 84.52 to EUR 70.32 per month, compared to the May and June tables, resulting in a net salary of EUR 838.45, or 22 .36 euros more compared to the current net salary of 816.09 euros, already after deduction of 83.68 euros, corresponds to a gross salary of 899.77 euros.
Employees in the third pay scale, which will rise from EUR 861.23 to EUR 869.84 gross per month, with the additional 1% increase to be applied in May, will receive the second best relief. From July, the monthly discount decreases by EUR 9.35, from EUR 60.88 to EUR 51.53, which translates into a net salary of EUR 818.31, or EUR 17.37 more than the net salary earned between January and April. 800.94 euros, before the salary increase.
Please note that the additional increase of 1% will be paid retroactively to January on May 20, together with the salary, and no withholding tax will be deducted from it.
Salomé Pinto is a journalist for Dinheiro Vivo
Source: DN
