Productivity bonus will only be exempt from IRS and Social Security if companies increase salaries
Productivity bonuses or the “fifteenth month,” as they have come to be known, will only be exempt from IRS (income tax) and Social Security if companies increase salaries. The government’s proposal is part of the agreement presented to social partners in social consultation, and it stipulates that this exemption will only take place if companies raise the average salary by at least 4.7%.
Youth IRS: new proposal could harm salaries up to 1,500 euros
The new Youth IRS proposal mainly benefits those with higher salaries. Those earning less than 1,500 euros may lose 12.50 euros per month.
The government’s new Youth IRS proposal has been one of the key measures indicated by the current government, though it has sparked some controversy, as those earning up to 1,500 euros will end up losing 12.50 euros per month compared to the current measure in place.
Home loans
At the moment, the Euribor is around 3.5%, and it is expected to drop to 3% by the end of the year. In 2025, it is anticipated to settle between 2% and 2.5%, which is considered the normal Euribor rate. It is worth noting that this decrease will undoubtedly help to somewhat ease the financial burden on families.
