The August and September payrolls are set to rise. The government explains this increase is linked to adjustments in the new IRS tables.
“Your salary in August and September will be higher than in previous months. Why is this happening? The government has published new IRS tables with lower deductions, applicable starting in August,” according to an official social media post by the government.
Higher Salary: The Explanation
In practice, “in August and September you’ll pay less IRS and also receive back what was overpaid since January, resulting in more significant tax relief these months.”
Then, “from October onwards, the ‘normal’ IRS rates, which are still lower than those in effect previously, will apply, so you’ll continue to have more disposable income,” the government explains.
“With this IRS reduction, taxpayers feel the tax relief immediately, gaining liquidity without having to wait for next year’s refund,” the post states.
The promised tax relief from the changes in general IRS rates for the first eight income brackets becomes evident this month when employees receive their August salaries.
Beatriz Vasconcelos with Lusa | 07:57 – 12/08/2025
What Changes in the Salary Slip?
According to the government, this is what you need to know about the changes:
- The reduction applies starting August;
- More money available every month;
- Applicable to salaries and pensions;
- In August and September, the excess IRS withheld since January will be returned;
- From October, new lower rates apply;
- The relief will impact three million families;
- The goal is to retain only the due amount, avoiding excess retention;
- Align the withheld tax closely with the owed amount;
- Ensure immediate monthly liquidity;
- Taxpayers receive now without waiting for the refund.
Some Workers Will Not Pay IRS This Month
As the month progresses and salary payouts approach, it is crucial to note that those earning up to 1,136 euros will not pay Personal Income Tax (IRS) in August and September under the new tax tables.
The new IRS tables reduce monthly withholding until year-end. In August and September, individuals earning up to 1,136 euros will not remit tax to the state, owing to a 0% rate.
In August and September, the retention rate will be 0% for gross salaries up to 1,136 euros, meaning no IRS will be withheld for salaries at this threshold – and in the following months? Remember all the upcoming changes.
Beatriz Vasconcelos with Lusa | 08:58 – 14/08/2025
