The salaries up to 1,136 euros gross monthly will be exempt from IRS in August and September. The decision is followed by updating the retention tables at source, now published by the government, and aiming to compensate for the disadvantage found since the beginning of the year.
According to the order of the Secretary of State for Tax Affairs, Claudia Reis Duarte, the measure has effects from August 1 and applies to single or married workers, provided that both elements of the household have income. In these cases, no IRS discount will be made in income up to 1,136 euros.
Three distinct phases until the end of the year
According to the document available on the Finance Portal, the new tables are divided into two periods: a first, more beneficial for August and September; Another, applicable from October to December, which already incorporates the definitive version of the IRS reform.
The exceptional tables now presented seek to correct the fact that between January and July, discounts were made based on old levels, not yet reflecting the changes approved by Parliament this month. With this reformulation, 2025 has three distinct moments of retention: from January 1 to July; the second in August and September; The third in the last three months of the year.
During the second period, the amount of the exemption descends in the case of married workers whose spouse does not increase income. In these cases, only salaries up to 1,081 euros gross are exempt from IRS.
October brings a slight increase in retention
From October, the adjusted retention rates are returned, but still lower than those that have been in force until July. For income up to 870 euros gross, equivalent to the minimum wage, the rate of 0%is maintained. For those who earn, for example, 1,000 euros gross, retention is again applied, but more lightly. The discount goes from 58 euros to 56 euros, two euros per month.
In a simulation made for a single worker with no children with gross salary of 1,500 euros, the impact of the new table is evident. From January to July, this professional retained monthly 186 euros, receiving a liquid of 1,149 euros after also discounting to social security.
In August and September, the amount withheld from IRS goes down to just eight euros a month, which allows the worker to take home 1,327 liquid euros. From October onwards, retention rises to 181 euros, which still represents a monthly net increase of five euros compared to the first half.
Pensioners also benefit
The same retention model applies to pensions. According to the government, there will be no IRS discount on renovations up to 1,116 euros (in the case of single or married spouse pensioners with income) or up to 1,152 euros (if the pensioner is the only one with income in the household). Above these values, there will be retention, but with softer rates.
According to the employing, public, private or social sector entities, should apply these tables in the August salary. If this does not happen, they can correct the retention in the following months, by the end of the year.
The measure seeks to give taxpayers immediate financial relief and allow a fairer adjustment to the tax changes introduced in 2025. For many workers and pensioners, the next two months will mean a direct reinforcement in available income.
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