Civil servants will have a new salary increase of 1% this year and an increase in the food subsidy, announced today the Minister of Finance Fernando Medina.
The announcement was made in the main hall of the Ministry of Finance, in Lisbon, at a press conference to present the new government measures to mitigate the increase in the cost of living, where the ministers of the Presidency, Mariana Vieira da Silva, and of Labor, Ana Mendes Godinho, are also present.
In January of this year, the salary base of public administration increased from 705 euros to 761,58 euros (around 8%), while workers earning up to around 2.600 euros gross received an increase of 52,11 euros and, from of this amount, a 2% update was applied, which resulted in an average increase of 3,6%, according to the Government.
The increase in the civil service meal subsidy to six euros, starting in April, will advance the IRS exemption for this type of subsidy paid in cash to this amount.
“The increase in the meal subsidy to six euros also translates into an increase in the level of tax exemption”, said today the Minister of Finance, Fernando Medina.
Despite the measure only targeting civil servants – whose meal subsidy increases 80 cents, from the current 5,20 euros to six euros, the minister said that it will also have an impact on workers in the private sector who, “receiving higher subsidies, were limited in your tax exemption up to 5,20 euros”.
At the press conference, the Government alsoannounced a VAT rate of 0% for the essential food basket, as well as a new monthly support of 30 euros to poorer families.