HomePoliticsPSD Queries Govt on Adjustment in IRS Tables Following Civil Service Increases

PSD Queries Govt on Adjustment in IRS Tables Following Civil Service Increases

PSD deputies questioned the government this Wednesday about the correction of the IRS tables, following the announcement of 1% increases in the civil service, and warned that the update could even lead to loss of income in certain cases.

In a document made available this Wednesday, the deputies recall that on March 24, the government announced “with great pomp” a 1% increase in civil servant salaries, to be paid from April.

However, they warned that “this salary update actually equates to a loss of income for thousands of civil servants” who not only “see the increase completely swallowed up by the huge contributions and taxes they are subject to”, in some cases may even suffer “a decline of their net income”.

The PSD assured that if this increase is not accompanied by a correction of the IRS tables, “more than 187,000 civil servants, who receive up to about EUR 870 gross per month, risk losing up to EUR 12 per month.”

PSD deputies thus consider it “essential that the government rectify this situation quickly”, so that when the updated amount begins to be paid in April, “officials are not harmed” and at the same time see “the increase announced corresponds to an effective increase in its net -income”.

The PSD also said that the update is “nothing more than the result of the multi-year agreement” signed between the government and the civil service unions affiliated to the UGT, as this interim update “was more than justified”.

Still, he pointed out, this will not prevent a loss in real terms, “that could amount to 8.6%” of the purchasing power of civil servants in 2022 and 2023.

The PSD faction later said that “there is an urgent need to clarify both the need to ensure the fiscal neutrality of the 1% increase, and when it will come into effect”, which “will only make sense if the update dates back to January of this year”.

For example, the delegates sent three questions to the government to find out how and when the IRS tables will be corrected, when the 1% update will take effect and, if it does not go into effect in January, what the justification is for doing so.

Author: DN/Lusa

Source: DN

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