José Sena Goulão / Lusa
Prime Minister Luís Montenegro
The salaries up to 1136 euros and pensions up to 1116 euros will be free of discounts for IRS in August and September. The government’s order includes retention tables at source for two distinct moments.
The new IRS tables reduce the monthly tax discount until the end of the year who wins Up to 1,136 euros will not deliver tax, because the rate is 0%, in the months of August and September.
The government’s order with the new retention tables at source was published this Tuesday at the Finance Portal, making known to companies and other entities how much they should discount in salaries and pensions from August.
The order of the Secretary of State for Tax Affairs, Claudia Reis Duarteincludes tables for two distinct moments.
August and September
Some apply in August and September, with exceptionally lower rates, To compensate for the retention made between January and Julywhere it was not yet possible to take into account the IRS reduction in the meantime approved by Parliament this month.
October, November and December
Other tables concern the months of October, November and December, reflecting the final version of IRS. In these three months of the year, the rates are higher than August and September, but lower than current.
Employing entities will have to apply new rates on August salaries, because the order produces effects on the 1st of this month. However, if they do not do so, they may “make their rectification in the retention to be made in the following months”, until December, provides for the government in the order released.
In detail
In August and September, the retention rate will be 0% for gross salaries up to 1,136 euros both for single workers (with or without children) or for workers married to someone who also earns income.
In the case of workers married to someone who has no income, the exemption level is lower, only covering salaries up to 1,081 euros gross.
In the last three months of the year, the rate of 0% will only apply to 870 euros gross, the value of the minimum wage, as it currently happens.
For example, a salary of 1,000 euros gross has so far delivered 58 euros per month of IRS. In August and September, the worker will not deliver anything. From October onwards, he will deliver 56 euros of IRS, two euros less than the first tables of the year (from January to July).
The distinct rates that will be effective in August and September are intended to retroact to January the effects of the reduction of IRS levels approved in the middle of the year, because retention at the source made since the beginning of 2025 has now been disadvantaged by the new version of the IRS table.
From October, the rates to be retained by companies and other employing entities (such as public services or IPSS) are different again.
Pensions
In the case of pensions, the retention model to be applied is the same, with fees from August to September and others from October to December.
In the next two months, also There is no IRS retention on reforms up to 1,116 euros gross monthly (If the pensioner is single or if he is married to someone who also earns yields) or even 1,152 euros (if the pensioner is married and the only element that has income). For the above values there will already be retention, but with lower rates than current ones.
With this reformulation, there are three distinct discounts over 2025: a first moment from January to July; a second in August and September; A third, from October to December.
Worker, single and without children
These three moments are simulated to the salary of a worker because of others, single and without children, who wins 1,500 euros gross per month. Currently, the professional takes home 1,149 euros net.
It retains 186 euros of IRS (an effective rate of 12.4%) that gives it a net salary of IRS of 1,314 euros.
However, as it discounts 165 euros for social security (11% of gross salary), the final net amount that reaches the bank account is 1,149 euros.
In August and September, the worker will only retain from IRS eight euros each month, instead of 186 euros (the effective low retention rate to 0.55%instead of 12.4%). During this period, the net salary of tax rises to 1,492 euros and the final net amount (IRS and Social Security) is at 1,327 euros.
From October to December, retention rises, but will be lower than the first seven months of the year. Net Salary (IRS and Social Security) becomes 1,154 euros, increasing five euros monthly compared to the current value (from January to July). The person retains monthly 181 euros instead of the 186 euros of the early months of 2025.
