Dependent workers and pensioners with salaries and pensions of up to 820 euros will be exempt from IRS withholding tax during this year. This is because the tables in force from this month include an increase in the minimum level from which monthly discounts must be made, from 762 euros to 820 euros.

On the last working day of the year, the Government published in the Official Gazette the new withholding tax tables, based on which the monthly discount applied to salaries and pensions is calculated.

This year, taking into account that the national minimum wage increased from 760 euros to 820 euros, the Government decided to set the minimum income limit on which withholding tax applies at precisely 820 euros. In other words, those who earn the national minimum wage will continue without having to make monthly IRS deductions.

It should be noted, however, that, in the Public Service, the “minimum salary” — that is, the salary base — will be above the guaranteed minimum salary.

The minimum existence determines the level of income that is guaranteed to each taxpayer after the application of taxes, that is, whenever the income after taxation is lower than the minimum existence, the State waives the tax, leaving the taxpayer exempt from IRS.

By setting the minimum wage at 11,480 euros, the Government guaranteed that those earning the minimum wage will continue not to pay IRS in 2024.

According to the Ministry of Finance, with these new IRS withholding tables, Portuguese families will see an increase in their monthly net income.