The Government will increase the minimum exemption in the Personal Income Tax (IRPF) in 2024, with the aim of updating it to the new increase in the Minimum Interprofessional Salary (SMI), as sources from the Ministry of Finance have confirmed to Europa Press .

The Department headed by María Jesús Montero has recalled that whenever the SMI has risen, the Government has accompanied the measure with modifications to the Personal Income Tax to avoid an excessive impact on withholdings. “And this time it will not be an exception,” according to the Treasury.

On Friday, the agreement with the unions was announced to raise the SMI by 5%, from 1,080 euros per month for fourteen payments to 1,134 euros, and the Treasury has assured that they are already working on this measure for personal income tax, which will be approved in parallel to the increase in salary. Therefore, there will be an increase in the exempt minimum in personal income tax in 2024.

The same sources have indicated that the regulations on the change in personal income tax withholdings that will imply the increase in the exempt minimum will be approved in the same Council of Ministers in which the ‘green light’ will be given to the increase in the SMI, which in principle It is not expected to be in tomorrow’s call. The personal income tax regulations will subsequently be modified, probably in the General State Budgets (PGE) of 2024.

The Executive thus responds to the proposal raised this Monday by the popular leader, Alberto Núñez Feijóo, about expanding the minimum exempt from personal income tax after the announced increase in the SMI. According to the Treasury, the PP “can give lessons on lowering taxes for high incomes and high assets, but not for low incomes.”

As they remember, when they governed, a worker who earned 15,876 euros a year paid 1,111 euros in personal income tax withholdings. In 2023, this same taxpayer paid 325 euros in withholdings, 70% less than with the PP. And in 2024 he will pay even less tax when the personal income tax regulations are updated to the new increase in the SMI.

In 2023, the exempt minimum in personal income tax was raised to 15,000 euros per year, practically the same figure as the SMI, which stood at 15,120 euros per year. With the 5% increase agreed for this year, the minimum wage will be 15,876 euros.