Private Sector Pay Raises: See How Much You’ll Get – Settings – Newsbomb – News

The increases, according to the “Free Sunday Press”, will occur of the implementation of measures to reduce deductions for insurance contributions and the abolition of deductions from special solidarity contributions, promulgated by the government.

The amounts and percentages of raises that private sector workers will receive starting next year are shown in a table with detailed examples presented today by Sunday’s “Free Press.”

The table shows the changes in Tax and insurance deductions on the gross (gross) monthly salaries of private sector employees which will be caused by the reduction of insurance contributions and the temporary abolition of the special solidarity contribution of 1^the January 2021. The examples in the table on workers without dependent children show that from 1^the-1-2021:

one Monthly deductions for insurance contributions will be reduced by 8 to 78 euros for employees with gross monthly income of 650 to 6,500 euros.

two Monthly income tax deductions will remain zero for employees with gross monthly income of 650 to 780 euros and will increase in 0.80 to 34.32 euros for employees with higher gross monthly income 780 and up to 6,500 euros. These small increases in income tax deductions are due to the fact that, due to the reduction in insurance contributions, one^the-1-2021 Taxable monthly earnings will be increased, that is, those that will remain after deduction of insurance deductions. Therefore, the income tax deductions will be calculated by one^the-1-2021 on the increase in taxable monthly wages resulting in an increase.

3 The monthly deductions of special solidarity contributions will remain zero for those employees who receive gross salary until 1,000 euros per month and now it will be zeroed for those who receive higher gross income 1,000 euros, due to the temporary suppression of this contribution for 2021 salaries in the private sector. At this point it should be clarified that the special solidarity tax applies to the annual taxable income of the 12,000 euros, which correspond to monthly taxable amounts of salaries on 858 euros in the private sector. The monthly taxable bases of remuneration above 858 euros in the private sector will correspond to 1-2021 in gross amounts (gross) of salaries greater than 1,000 euros, since from this level of gross income onwards the monthly deductions from insurance contributions will begin 141 euros. Therefore, the temporary abolition of the monthly deductions of the special solidarity contribution from the salaries of the private sector will only benefit those employees who receive gross amounts of remuneration (salary amounts before deducting insurance premiums, income tax and special solidarity contribution ) up 1,000 euros per month or taxable amounts of earnings greater than 858 euros per month. Employees in these cases will benefit from the temporary suppression of the monthly deductions of the special solidarity contribution that will begin 1.07 euros per month for those who have a gross salary of 1,070 euros per month and reach up to 306.15 euros for those with a gross salary of 6,500 euros per month.

4 Finally, private sector employees with gross monthly income of 650 to 6,500 euros, that currently correspond to the monthly net earnings of 550 to 3,354.67 euros (after deducting the monthly deductions for insurance contributions, income tax and special solidarity contribution) will receive increases on their net monthly wages that will vary in percentages of 1.45% to 10.43% and in amounts from 8 to 349.83 euros. Therefore, starting in January 2021, your monthly net earnings will now range from 558 to 3,794.49 euros!

“NET SALARY” means that resulting from the insurance deduction and tax deductions from the gross salary.

Source: Free Press Sunday

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