The rise of interprofessional minimum wage (SMI) up to 1,080 euros gross (in 14 payments) announced by the President of the Government, Pedro Sanchezwill reach around 2.5 million workers almost entirely, with a monthly withholding on account of income tax (IRPF) of just 2.80 euros (39.31 euros for the year as a whole).
In other words, the 1,080 gross euros will be transformed into a net salary of 1,077.2 euros, multiplied by 14 payments. Another matter will be the final liquidation of the tax, when it is necessary to present the income statement for 2023. That will already be in 2024, before June 30 of that year. So, depending on each autonomous community, there will be taxpayers who will be returned all or part of the 39.31 euros withheld throughout 2023, according to the calculations made for EL PERIÓDICO by the Registry of Tax Advisory Economists (REAF), of the General Council of Economists.
Single taxpayer with no children
REAF calculations refer to a single taxpayer, under 65 years of age and without dependent children. If there is a child, the withholding will be zero: the worker will receive the full 1,080 euros and will not have to pay a single euro to the Treasury. On the other hand, the new amount of 1,080 euros of the interprofessional minimum wage that is expected to be approved by the Council of Ministers with retroactive effect from January 1, 2023 has already discounted social contributions corresponding to the company and the worker, according to the Ministry of Inclusion, Social Security and Migrations.
First step: retention
The new interprofessional minimum salary of 1,080 euros per month translates into a gross annual amount of 15,120 euros. In general, the first 15,000 euros of earned income are not subject to personal income tax withholding, but the 120 euros that exceed that amount. Thus, according to REAF calculations, companies must apply a withholding of 39.31 euros on the payroll, which, if divided by 14 payments, represents a monthly snack of 2.80 euros. Hence, the gross 1,080 euros will be converted into 1,077.2 euros.
Second step: the statement
In the first semester of 2024, when it is necessary to present the income statement for 2023the same gross SMI of 1,080 euros will be taxed differently in each community, depending on the regional section of the personal income tax rate, although the differences are not abysmal. For annual gross income of 15,120 euros, the most expensive personal income tax corresponds to Catalonia, with a full fee of 41.53 euros. From this amount, the taxpayer must subtract the 39.31 euros withheld in 2023. Thus, the statement will pay, for an amount of 2.22 euros. This Catalan taxpayer, in any case, will be able to avoid this payment, since his gross annual income (15,120 euros) is below the 22,000 euros that determine the obligation to declare.
Differences between communities
Just like the income statement that is presented in 2024 will be paid for the taxpayers of Catalonia who receive the SMI this year (in little more than two euros), will also be positive for this same type of workers Aragon, Asturias, the Balearic Islands, Cantabria, Castilla La Mancha, Extremadura and Murcia. In these seven autonomous communities, the differential fee will range between a few cents and just over one euro. There are other communities in which if the taxpayer chooses to submit the declaration, he may obtain a refund of between 39.31 euros (in the case of Valencia) and 90 cents (Canary Islands, Castilla y León and La Rioja), going through intermediate amounts in Andalusia, Galicia or Madrid.