When it comes to knowing the monthly income of an employee, you must be clear about the difference between salary or gross salary and the amount that will finally enter the payroll in your bank's checking account.
It should be remembered that all salaries are subject to tax withholdings. In addition, the worker must also contemplate the different extras that are also recognized in the agreement of his sector due to his task (seniority, night shifts, work trips, ...)
Among the parts that are subtracted from the gross salary are the contributions to Social Security and the part of the Personal Income Tax (IRPF) depending on their family situation.
The Government announced a new increase in the SMI for 2023 to 1,080 euros, a measure that has been agreed with the CCOO and UGT unions, and that will be applied retroactively to January 1 of this year.
In total, the increase will be 8% for the worker in the 14 payments of this year. However, it will not be the amount that the SMI workers enter on their payroll and the payment of taxes and Social Security will be deducted.
2023 also starts with a new payroll tax. This is the Intergenerational Equity Mechanism (MEI) that aims to guarantee the purchasing power of pensions.
Since this month of January, the MEI represents a 0.6% increase in contributions for common contingencies, distributed between the company and the worker with the same distribution as in social contributions. Specifically, 0.5 of the contribution must be assumed by the company and 0.1% by the worker.
In the case of the self-employed, the MEI is variable. Compared to companies and employed workers, which is around 12 euros in salaries of 2,000 euros per month, for the self-employed worker it will be 5 euros per month.
In principle, this payroll discount will be valid for 10 years, until 2033.
According to the criteria of The Trust Project
