In concrete terms, the non-taxable salary has been increased and a greater portion of the remainder is taxable at 40%, thus reducing the portion subject to a 45% tax.
While net salaries will go up, on average, by 36 euros come January, the increase will be proportionally higher for lower salaries.
An employee receiving a gross monthly salary of 2,000 euros will take home 1,612.63 euros net from January, an increase of 2.36% or 37.19 euros. Employees grossing 3,000 euros per month will earn take-home salaries of 1,955.51 euros (+1.87% or 35.84 euros). Finally, someone earning a gross monthly salary of 4,000 euros will receive a net salary of 2,394.91 euros (+1.52% or 35.85 euros).
This increase is calculated without taking into account any wage indexation or any possible increases stemming from collective labour agreements.
Christopher Vincent
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