As of today, individuals earning €820 enjoy a net annual income of €11,078.06. However, come 2024, their earnings will amount to €11,480, marking a notable increase of €402.

Portuguese companies anticipate salary raises According to a report from ECO, the forthcoming increase in the minimum wage, as outlined in the State Budget proposal for 2024, is expected to benefit not only those receiving the national minimum wage. Based on simulations conducted by EY for ECO, individuals earning more than the minimum wage but less than €1,000 can anticipate an approximate €400 boost to their annual net income.

In cases where a taxpayer's post-tax income falls below a specific threshold, the government exempts them from income tax (IRS). This threshold is known as the minimum subsistence level, guaranteeing a certain income to each taxpayer following the application of taxes.

Until now, this minimum threshold was linked to the national minimum wage. However, a year ago, in the State Budget proposal for 2024, the government opted to revise this model.

According to EY's projections, individuals earning €820 today, with a net income of €11,078.06 for the entire year, will see their net income increase to €11,480 in 2024, as they will no longer be subject to IRS deductions. Photo by Lionel Allorge, Wikimedia commons.