We have heard from our partner firm in Portugal that as from 1 January 2024 a new minimum wage will be compulsorily applied in Portugal, approved by the Decree Law of 17 November. The new minimum wage is 820 euros gross. (Up from €760 in 2023).
Thus, all companies will have to update the salary in case it is below this value before the payroll of January '24.
Also in January it is important to mention that the 2023 Income Tax Statements (IRS) must be sent to the employees, thus complying with the IRS Code. The Tax Statement is a document that the employer must deliver to the employee by 20th of January each year, referring to the previous year’s income and taxes withheld and other deductions.
The payroll systems/payroll provider ought to issue these documents automatically; they can be sent by e-mail or delivered in hand to employees having the employer signature and stamp on it.
The information on these statements must match exactly the monthly tax delivery report (DMR-AT) that the employer submitted to Tax Authorities, so that when the employees submit their Tax Statements (between April and June) using this Tax Statement document there will be no inconsistency.
If you need more information call 07958 173 708 or e mail john.tinsley@lecheminantinternational.com
