The Government proposes this Thursday to social agents the periodic update of IRS income levels in 2023 based on salary appreciation by 5.1%, in order to ensure the fiscal neutrality of salary updates.
The measure is part of the Government’s proposal for the medium-term agreement to improve income, wages and competitiveness, to which Lusa had access, and which will be discussed this Thursday at the Social Dialogue, with a view to having some measures already included. the State Budget proposal for 2023 (OE2023) that will be delivered to Parliament on Monday.
The document provides for the “updating in 2023 of the levels of the Personal Income Tax (IRS) based on the criterion of nominal appreciation of the remuneration per worker (5.1%), ensuring the principle of fiscal neutrality of the subsequent salary updates, with the periodic updating of the IRS scales”.
An approximation and, as far as possible, elimination of the difference between the IRS withholding and the tax owed is also foreseen, evolving towards a system of withholding at the source that ensures that salary increases are translated into monthly net earnings for workers. .
The executive also proposes a reformulation of the rules of operation of the minimum existence to give the IRS greater progressivity, “going from a final settlement logic to an upstream bonus logic, benefiting incomes of up to 1,000 euros per month and eliminating the distortion ”. current tax rate at 100% of income immediately above the current RMMG [Remuneração Mínima Mensal Garantida]”.
The document also includes the creation of an incentive for reintegration into the labor market, aimed at long-term unemployed, which allows the partial accumulation of the unemployment benefit with the salary paid by the employer.
Source: Observadora
