Saturday , May 21 2022

Salary increases from 2021: See how much you get



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Hundreds of thousands of private sector workers will receive from January 2021 monthly wages increased from 1.45% to 10.43%.

The new higher amounts of net pay will result from implementing measures to reduce deductions for insurance contributions and abolish deductions for special unity contributions, already enacted by the government.

What’s changing

In particular, from January 2021, two very important measures announced by the Prime Minister will come into force. Kyriakos Mitsotakis last September of the “stage” of the TIF and already included in the law of the state of Greece:

1 The reduction of three percentage points in the insurance contributions of private sector workers, with a budget cost of 816 million euros.

2 Prevent imposing a special unity contribution on private sector employees with a gross monthly wage of 2021 over 1,000 euros and on small and medium-sized, self-employed, other self-employed, incomes and farmers with an annual income of over 12,000 euros in 2020. by this measure a budget cost of 767 million euros. Applied in combination with reducing insurance contributions, it will have the effect of increasing from January 2021 the net monthly wages of those private employees who receive gross over 1,000 euros per month.

changes

The amounts and percentages of increases that private sector workers will receive from next year are reflected in a table with detailed examples presented today by “ET”. The table shows the changes in insurance deductions and tax on the gross monthly (gross) wages of private sector workers which will be caused by the reductions in insurance contributions and the temporary withdrawal of the special unity contribution from 1 January 2021 From the examples in the table. , relating to workers without dependent children, appears between 1-1-2021:

Monthly deductions for insurance contributions will be reduced by 8 to 78 euros for employees with gross monthly wages from 650 to 6,500 euros.

Monthly income tax deductions will remain zero for employees with gross monthly earnings from 650 to 780 euros and will increase 0.80 to 34.32 euros for employees with gross monthly earnings over 780 and up to 6,500 euros. These small increases in income tax deductions will be due to the fact that, due to the reduction in insurance contributions from 1-1-2021, the taxable monthly earnings, ie those that remain after deducting insurance deductions, will be increased . Therefore, income tax deductions will be calculated between 1-1-2021 at higher taxable monthly earnings resulting in an increase.

The monthly special unity contribution deductions will remain zero for those employees receiving a gross salary of up to 1,000 euros per month and will now be zero for those receiving a gross salary of more than 1,000 euro, due to the temporary withdrawal of this contribution for 2021 private sector wages. . At this point we should make it clear that the special unity contribution is enforced on annual taxable income from wages over 12,000 euros, which equates to monthly taxable amounts of over 858 euros in the private sector. Monthly taxable amounts of wages over 858 euros in the private sector will equate from 1-1-2021 to gross (gross) salaries of over 1,000 euros, given that this level of gross earnings and above monthly deductions of insurance contributions will start. of 141 euros. Thus, abolishing monthly special unity contribution deductions from private sector wages will only benefit those employees who receive gross remuneration (salary amounts before deducting insurance contributions, income tax and special union contribution of € 1,000 per month or more). taxable amounts of earnings over 858 euros per month. Workers in these cases will benefit from the abolition of the monthly special unity contribution deductions starting from 1.07 euros per month for those with a gross salary of 1,070 euros per month and up to 306.15 euros for the those with gross earnings of 6,500 euros per month.

Finally, private sector employees with gross monthly earnings of 650 to 6,500 euros, which currently equates to net monthly earnings of 550 to 3,354.67 euros (after deducting monthly deductions of insurance contributions, income tax and special unity contribution) , receives net monthly salary increases on their salaries that will range from 1.45% to 10.43% and in amounts from 8 to 349.83 euros. So, from January 2021, their net monthly earnings will now range from 558 to 3,794.49 euros!

“Net salary” means the deduction of insurance and tax deductions from gross salary.

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