The September salary will receive a ‘bonus’ due to the new IRS tables introduced this year, though in October, it is expected that employee remunerations will return to lower levels.
The matter concerns the application of the new IRS tables, which practically provide higher monthly income to workers. This relief was more noticeable in August and September because of retroactive adjustments.
From October onwards, regular IRS rates, which are nonetheless lower than those previously in effect, will be applied, ensuring continued higher disposable income, the government has promised.
New Tables: What Has Changed?
With the new tables, the rate for the first bracket decreases from 13% to 12.5%, the second drops from 16.5% to 16%, the third reduces from 22% to 21.5%, the fourth declines from 25% to 24.4%, the fifth decreases from the current 32% to 31.4%, the sixth reduces from 35.5% to 34.9%, the seventh changes from 43.5% to 43.1%, and finally, the eighth lowers from 45% to 44.6%.
The rate for the highest income bracket remains at 48%.
While there is no change in this highest level, the IRS reduction benefits all taxpayers who are required to pay taxes due to the progressive nature of the table. The decrease in previous brackets ensures that taxpayers in the new bracket also enjoy relief.
How Much Will You Save?
Practically, the impact of the changes in 2025 depends on each household’s tax situation, but simulations released by the Ministry of Finance provide some clues.
A couple with two children, each earning 1,500 euros monthly, will see an annual IRS reduction of 165 euros compared to what was planned in the OE2025, according to simulations from the Ministry of Finance.
A simulation for a couple without dependents predicts an annual tax saving, compared to the current rules, ranging from 67 euros (when each person earns 1,000 euros gross monthly) to 414 euros (when each person has a salary of 3,000 euros).
For a single taxpayer without dependents, the annual tax saving compared to what applies under the OE2025 ranges from 34 euros for salaries of 1,000 euros to 207 euros for salaries of 3,000 euros.
For a pensioner receiving up to 1,000 euros gross, the annual tax saving compared to the OE2025 will be 34 euros, increasing to 83 euros for pensions of 1,500 euros, 124 euros for pensions of 2,000 euros, 166 euros for pensions of 2,500 euros, and 208 euros for pensions of 3,000 euros.
Meanwhile, simulations by PwC reveal that the IRS reduction will allow a single worker without children earning 1,000 euros to pay 34 euros less in annual tax than with the current IRS table.
The issue at hand is the application of the new IRS tables that effectively gives workers more monthly income. This relief is more pronounced in August and September due to retroactive effects.
Beatriz Vasconcelos | 08:30 – 03/09/2025
