By Vangelis Dourakis

Time counts down for the new increase in minimum wages in both the private and public sectors, but at the same time … it “kisses”. Unmarried, couples with no children, but also as many couples, will find that the imminent remuneration is changing the taxation of taxation and the amount they will be paid to them will be twice as much as they pay today.

The “damage” is done by the chaotic distance that separates the first -step tax rate with the second, as the tax for up to 10,000 euros is 9% and is launched to 22% for incomes of 10,000.01 euros or more. Thus, the increases that will be given are “groomed” by the tax office.

Examples of charges after earnings increases

Indicative is the example of a unmarried employee of the private sector or married without childrenwhich is paid 14 wages.

If today he receives the minimum wage, ie 830 euros gross, his tax is € 137 or € 9.8 per month.

As of April 1, the earnings of this employee may even reach € 880 gross. In this case, however, it should be aware that the annual tax will rise to 270 euros or 19 euros per month, that is, it is doubled, as a larger “part” of its earnings will be taxed at the rate of 22%, which is activated from € 10,000.01 or more.

In other words, the final charge will be 133 euros a year or 9.5 euros per month.

And of course in this case, a tax -free amount of € 8,686 is calculated, taking into account that the employee has completed the necessary transactions with his card.

For them employees with 1 child With the increased tax free (at 10,000 euros) the annual tax with new earnings (if they are finally stood at € 880 gross) will be 137 euros instead of a salary of 830.

Higher tax will also pay the civil servants unmarried or married without children which are paid with 12 salaries.

Specifically, today, for example, the import salary of a state employee is 850 euros with the annual tax that is € 19 or 1.6 euros per month.

As of April 1, the employee’s earnings will be up to 880 euros, with the annual tax climbing to EUR 47 or 3.9 euros per month, which practically means that the adjustment of earnings brings a higher tax of 28 euros per year or 2.3 euros per month.

‘Lucky’, however families with 2 and more childrensince, of course, working parents are paid minimum wage: and this is because the tax -free is now increased by 1,000 euros for those who have minor children. So the increase in minimum wage in the private sector and the import to the State will not tax these categories because they remain tax -free.

What proposals to reduce taxes fell to the table

Whatever the Maximus Palace and the Ministry of National Economy, they have put a new “package” of taxation “that will definitely limit weights mainly for middle income.

The basic scenarios that have been currently put on the table for direct taxation are:

  • Decrease in the tax rate for incomes from 10,001 to 20,000 euros: “scissors” of the rate of 22% currently at a lower level with 15%, which will lead to a tax reduction of 700 euros and an increase in monthly income by 50 euros for private employees.
  • Tax scale price: The aim is to relieve taxpayers with incomes of 20,000 to 40,000 euros, as the absence of price adjustment of the scale has led to increased tax burdens due to inflation.
  • Increase in the limit for the highest tax rate: today, the tax rate of 44% is imposed on incomes of more than 40,000 euros. The scenario predicts the increase in this threshold to reduce tax pressures on higher income.