It brings significant gains for 3.5 million citizens in 2023 through the abolition of the solidarity levy, the increase in pensions and the minimum wage, which cost more than 4.2 billion euros. At the same time, a number of tax measures are being extended into the new year, such as the suspension of VAT on real estate, as well as capital gains tax and a rebate on apartment renovations.

From the elimination of the solidarity levy, civil servants and pensioners will receive small but significant amounts, which depend on the level of wages, and pensioners and low-paid private sector workers will receive significant bonuses, in some cases more than a monthly salary.

• Civil servants. From the new year, the solidarity collection is canceled for all taxpayers. However, in the past two years, private sector workers have not paid contributions due to the pandemic crisis and declining incomes. Thus, about 500,000 civil servants with an annual income of more than 12,000 euros receive the allowance. The special contribution of 1% to the Social Security Fund for Civil Servants, which covers 600,000 civil servants, has also been abolished. Starting January 1, the special salary of 20,000 NHS doctors will be adjusted with increases in base salary, hospital work allowance and position in charge allowance. The average increase is estimated at 10%.

So, for a civil servant with an income of 13,000 euros, i.e. with a net monthly salary of 1,083 euros, the annual benefit from the cancellation of the contribution will be 22 euros or 1.83 euros per month, and with an income of 15,000 euros or 1,250 euros. per month, the allowance will be 66 euros per year or 5.5 euros per month. At the same time, the social contribution is abolished, and the annual allowance for the recipient of 1,083 euros (13,000 per year) is 151 euros.

• Increase in the number of pensioners. According to the Ministry of Labor, an increase of 7.75% will be received by 1,724,713 pensioners. Of these, 80-85% will remain intact, while the vast majority of the rest will see increases in excess of 7%, depending on how big their personal differences are.

• Minimal salary. From May 1, a new minimum wage will come into force, which will affect 650,000 workers. The aim is for wages to return to pre-memorandum levels, i.e. to a minimum increase of up to €751 gross (€876 per month if calculated on a 12-month basis, i.e. including gifts and vacation pay and vacation pay), from 713 euros. which is currently.

tax package

Civil servants and pensioners will receive small but significant amounts from the abolition of the solidarity levy.

• Conditional waiver of sham fees. Private and small businesses with a gross income of up to 2 million euros per year, which increase the average annual number of full-time employees by at least 3/12 per year, are exempt from property fees for the year of increase.

• Continued reduction of three percentage points in insurance premiums for private sector workers.

• Maintaining reduced VAT rates until June 2023 on passenger transport services, non-alcoholic beverages and services for their sale, cinema, theater and concert tickets, gyms and dance schools, and travel packages.

• Suspension of VAT for new buildings until the end of 2024. From January 2025, VAT on new builds can either be capped at 13%, or a country can ask to join real estate derogations, following the example of Luxembourg, which has a zero rate.

• Maintenance of the tax bond for the renovation and repair of houses. According to the law, property owners can save up to 1,600 euros in tax due to them if they have renovated their property and have the appropriate invoices. The discount is 40% of expenses with a maximum limit (of expenses) of 16,000 euros. That is, taxpayers for work of about 16,000 euros will receive a 40% discount, that is, 6,400 euros, the amount of which will be evenly distributed over four years.

• Suspension of the 15% capital gains tax on property sales until the end of 2024.

• Extension of the maternity benefit in the private sector from 6 to 9 months to address the problem of low fertility with a budgetary cost of 64 million euros.

• Reform of the special salary of doctors in the National Health Service and measures in the field of wages to support the leadership of the armed forces.