Recently, increases were announced regarding the minimum wage in Portugal, namely an increase of around 55€. However, along with this, there is also the implementation of new tables related to withholding tax.
The amount of the salary will always depend on several factors, including income, taxes attributed to them, marital status and whether or not you have dependents to charge. How we calculate the net salary amount is very simple, from the gross salary amount we subtract all discounts, both for Social Security and IRS, so we get the net salary amount.
WITHHOLDING TAX
However, it is expected that the withholding tax may change at least twice this year, i.e. in the first half of the year it should remain similar to the current table, but after that period, it may change. Therefore, it is essential to be alert to a possible change in the net salary. When the tables change, it is necessary to check where the gross salary fits in, taking into account the factors mentioned above. After the changes we need to multiply the salary amount by the new value of the corresponding withholding rate.
Are you still unsure how to calculate your net salary in 2023? Check out our SALARY SIMULATOR!
- You have the possibility to calculate the reduction of the IRS rate - if you receive up to € 2,700 and have a housing credit
- New food allowance calculation on new limits
- Updates the value of the guaranteed minimum monthly salary and creates an exceptional compensation measure
- Annual update of the value of the social support index (IAS)
- Withholding tax tables on income from dependent work and pensions earned by holders resident on the mainland to be in force during the first half of the year 2023
Diogo Travassos - General Manager of Operations - BTOCNET | Torres Vedras
