The so-called tax deductible item has increased.
Employees will receive more money in their February paycheck. It will also concern most of those whose salary the company did not raise. The so-called tax deductible item has increased.
Since the new year, the non-taxable part of the tax base, which is based on the subsistence minimum, has increased – and that has also increased.
Tax adviser Mária Sameková explained that thanks to the increase in the minimum living wage and the tax-free amount, if the employee’s income remained at the same level as in 2023, each employee will earn more due to tax savings. Specifically, it should be less than 12 euros, which is approximately 140 euros per year.
Why do some employees get more money? This is what editor Veronika Čokinová asked the experts:
Michal Páleník from the Employment Institute said that some people will have the same income because they do not pay taxes due to their low income. “However, for those with medium incomes, it means a few euros more,” he added.
The second option is not to apply the higher non-taxable amount on a monthly basis.
Mária Sameková stated that some employees with lower incomes deliberately do not apply a higher monthly non-taxable amount in order to ultimately have an overpayment at the annual settlement.
So, in practice, they apply the entire amount to the annual settlement, for example EUR 5646.48 for the year 2024, thereby effectively creating a reserve
The analyst criticizes that the living wage, from which the non-taxable part of the tax base is based, is tied to the inflation of two years ago.
“Wages are growing, but not at a time when inflation was high, but only now, when inflation is relatively low. If this were linked to inflation at a given time, incomes would already rise at a time when inflation is high and people need more money for basic food,” added Páleník.
Trade unions propose an increase in the minimum
The confederation of trade unions proposes that the living wage not only be increased once from the current 350 euros to roughly 400, but also that its valuation be adjusted.
According to their proposal, the value of the living wage could depend on the amount of the average wage or the minimum wage. The move would allow employees who receive minimum wage or wages close to that limit to essentially not have to pay taxes.
If the living wage were to be linked to the amount of the minimum wage, according to trade unionists, it would help low-income employees the most.