The Government presented this Thursday, October 6, to the social partners a new proposal for an income agreement, which includes a reformulation of the value they want the national minimum wage to reach in January 2023. initial proposal to set a minimum income of 750 euros In The new proposal comes with a suggestion of a minimum wage of 760 euros.
An increase in the minimum wage has an effect not only on income, that is, on those who receive this amount, but also on collective agreements. There are also automatic effects in other fields. There are compensations that determine updates to the minimum wage. This is, for example, the case of the professional card for journalists. But also the lowest tuition fees, the maximum limit of compensation for dismissal and the maximum ceiling of the salary guarantee fund.
But there’s another auto effect that packs a punch. The national minimum wage influences the value of the so-called minimum existence, the portion of income that is exempt from the IRS.
Thus, based on the minimum wage proposed by the Government —of 760 euros— the minimum existence will be They go from 9,870 euros in 2022 to 10,640 euros in 2023. Whoever earns up to that amount annually does not pay IRS, and income up to that amount is also exempt, according to an EY simulation carried out at the request of the Observer.
The minimum stock is determined, in accordance with current regulations, through two rules. EY explains:
- 14×1.5xIAS — in 2022 it will correspond to 9,307.20 (14×1.5×443.20). For 2023, the Government has not yet ruled on updating the Social Support Index.
- The above amount cannot be less than 14 times the monthly minimum wage (that is, 9,870 euros in 2022 and 10,640 euros in 2023, if the minimum wage is increased to 760 euros).
Source: Observadora
