Workers’ net monthly salary in both the private and public sectors will increase by at least €50 starting in January.
Workers’ salaries will increase by €600 net per year due to tax scale adaptation and the calculation of the withholding tax, according to the calculations of the HR service provider SD Worx published on Tuesday.
Wages are not only adjusted to the cost of living, but they also depend on tax scales, which evolve in line with inflation. On Tuesday, Belgian authorities announced the key formula for the new tax brackets as of 1 January 2023.
SD Worx calculated the impact based on this key formula for 2023.
“Last year, inflation was very high. This not only results in an automatic indexation of salaries per sector but also in a higher indexation of the tax rates so that more of your salary ends up in a lower tax bracket, which results in a higher net salary,” Kristiaan Andries, advisor at SD Worx’s knowledge centre, told Le Soir.
“The impact differs from family to family. We made calculations for gross monthly wages of €2,000, €2,750, €3,750 and €4,500. The net wages will increase by at least €50 to a maximum of €70 extra per month,” Andries told De Tijd.
In comparison, two years ago the average increase was only €5 per month or €60 per year. Last year it was around €240 per year.
(Anne-Sophie Gayet | EURACTIV.com)
Source: euractiv.com
