Cancel and reduce ownerincreases in the salary and pensionsAdoption allowancesspecial funds, etc. are included in the activities implemented since the beginning of the year.

These are emergency but also permanent measures, totaling 4.2 billion euros.

From the first month of the new year, civil servants will receive an increase in wages due to the abolition of the solidarity contribution and a special contribution of 1% in favor of the Welfare Fund.

Also, pensioners will increase wages in 12 years, and for private sector workers, the solidarity contribution will be canceled and reduced by 3 percentage points, it will become permanent.

An increase in the income of doctors of the National Health Service, as well as leaders of the Armed Forces, is also expected.

In addition to a direct increase in wages, indirect strengthening of incomes is also envisaged by reducing or freezing taxes. In particular, support for the real estate market continues through the “freezing” of VAT on construction, capital gains tax and the extension of the “bonus” on real estate renovation for another two years, as well as reduced VAT rates for cafes, restaurants, transport are extended until the end of June 2023 .

In particular, the package of measures for 2023 includes:

• Solidarity Contribution: Permanent abolition for all taxpayers. Thus, after private sector workers, civil servants and pensioners are next in line, whose salaries will increase from the first month of the new year. The annual allowance for taxpayers with an annual income of more than €12,000 starts at €22 and can go up to €676 for higher incomes. For example, for a civil servant with an annual income of 18,000 euros, the benefit will be about 132 euros per year.
• End of calling: Conditional waiver for start-ups and small businesses with gross revenues up to €2 million per year, provided they increase their average annual headcount by at least 3/12 per year. An exception applies to the year in which the increase occurs.
• Insurance premiums: A three percentage point permanent reduction in insurance premiums for private sector workers.
• Pensions: An increase of 7.75% in the wages of pensioners of all funds. The measure applies to 94.6% of pensioners.
• Maintenance of reduced VAT rates until June 2023in passenger transport services, in soft drinks and drinks, in cinema, theater and concert tickets, in gyms and dance schools and in a travel package.
• Suspension of VAT for new buildings until the end of 2024
• Saving the tax bonus for home repair and renovation.
• Suspension of capital gains tax 15% in real estate sales until the end of 2024.
• Photovoltaic subsidy panels in households, businesses and farms to save energy.
• Repair/preserve and repair/lease programs with the help of which subsidies are provided for the repair and energy saving of houses, as well as a program of preferential loans for the purchase of the first home by young people and young couples up to 39 years old.
• Extension of maternity benefit in the private sector from 6 to 9 months to combat low fertility at a budgetary cost of 64 million euros.
• Housing allowance increase to support students studying away from their place of residence.
• Reform of the special salary of doctors of the National Health Service and payroll measures to support the leadership of the armed forces.

Finally, the process will start for increase in the minimum wage which will come into effect from May 2023.

^{With information from APE-MPE}