Employees with an average salary will earn a net increase of 91 euros per month next year. This is evident from the calculations published on Wednesday by payroll service provider ADP. The main reasons for the salary increase are adjustments in the employed person’s tax credit for employers and income tax that will take effect in January. The average gross salary is now 3,086 euros.
People with a minimum wage (gross 1,934 euros) will even gain a net 218 euros per month, because the minimum wage will also be increased next year. According to ADP’s calculations, the salary of people who earn one and a half times the average will increase by a net amount of 87 euros and employees who earn twice the average will have 98 euros more per month.
Wages are rising because, on the one hand, the employed person’s tax credit will be increased (from a maximum of 4,260 euros in 2022, to 5,052 euros in 2023) and, on the other hand, income tax will be reduced. These measures apply from 1 January and were announced in the Budget Memorandum on Budget Day.
In addition to the tax changes on income from work, the tax exemptions for travel expenses and homework allowances will also increase. Travel expenses will be 21 cents per kilometer next year, instead of 19 cents. The homework allowance will increase from 2 to 2.15 euros per day. The employer is not obliged to implement these allowances. ADP has not included in the calculations the possible wage increases that have been agreed in new collective agreements.
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