According to a report by ECO, it is not only those who earn the national minimum wage who will benefit from the increase in the minimum wage provided for in the State Budget proposal for 2024. According to simulations carried out by EY for ECO, anyone earning above the minimum salary, but below €1,000, can count on a gain of around €400 in their annual net salary.

Whenever a taxpayer's income, after taxation, is less than a certain amount, the State waives tax, leaving the taxpayer exempt from IRS. This value is the so-called minimum existence, that is, the level of income that is guaranteed to each taxpayer after the application of taxes.

Until now, this minimum limit had been guided by the national minimum wage, but a year ago, in the State Budget proposal for 2024, the Government decided to reformulate the model.

According to EY simulations, if those who earn 820 euros today have, for the year as a whole, a net income of 11,078.06 euros, in 2024 they will have a net income of 11,480.00 euros, as you will no longer pay IRS.