The amount from which salaries are withheld by IRS increases in January to 820 euros, with a monthly net income gain of around 28 euros, according to the new tables published today.
“Those earning the minimum wage, which in January rises to 820 euros, will not pay IRS, meaning they will not be subject to withholding tax. For this amount, the gain in monthly net income compared to last year will correspond to around 28 euros per month (392 euros per year)”, informed the Ministry of Finance, in a statement.
The new tables for next year were designed to accommodate the changes to the IRS included in the State Budget for 2024 (OE2024), namely the new rules on the minimum existence and changes to the levels.
In the case of reforms, according to simulations carried out by the Government, an unmarried pensioner with a pension of 900 euros per month will have a source reduction of 49%, which corresponds to an increase in net income of 25 euros per month.
The ministry led by Fernando Medina highlighted that the new tables ensure “that an increase in gross income corresponds to an increase in net income”.
The new model includes a reduction from 16 to 11 tables, maintaining the withholding tax model applicable to income from dependent employment (Category A) and pensions (Category H) implemented in the second half of 2023.
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