The double increase in the minimum wage and tax cuts in 2022


Wage increases for employees in 2022, as the government has announced in the first half of the new year there will be two increases in the minimum wage and at the same time will remain in effect reductions in contributions and exemption from the solidarity contribution in the private sector .

According to government announcements, the first increase in the minimum wage is 2% and will take effect on January 1 of the new year and the second installment, as stated by the government staff, will probably come in June. Its amount will be determined based on the proposals that the ministry will receive from the workers ‘and employers’ associations. Remember that for the first increase of the minimum wage, the proposals that had been submitted had huge differences between them, since they started from “freezing” and reached up to an increase of 15%.

It should be noted that the minimum wage in the private sector concerns about 700,000 employees, but it also affects wages in the sectors of flexible forms of work (eg part-time) while the increase also affects at least 20 benefits.

Tax breaks

A package of tax reliefs included in the budget also brings 2022. In particular, the tax reliefs included in the budget for the new year, concern the following:

  • new reduction of the corporate tax rate from 24% to 22% and on a permanent basis
  • reduction of insurance contributions by 3 points in 2022
  • reduction of the mobile subscriber fee and the prepaid fee to 10%, from 12% to 20% that was until today depending on the amount of the monthly bill
  • complete abolition of mobile and prepaid charges for young people up to 29 years old.
  • extension of the low VAT rates on the tourist package, transport, coffee, non-alcoholic beverages and cinema tickets until June 2022.
  • extension of the special solidarity levy exemption to 2022, a measure that directly benefits private sector workers, business owners, property owners and farmers
  • Continuation and permanence of the reduction of the advance tax for legal entities and legal entities from 100% to 80%, as well as 55% from 100% of the advance payment for natural persons
  • suspension of the pay-TV fee (10% of the total bill) until June 2022
  • 200% discount from the gross income for “green” expenses of small and medium enterprises but also for the digitization
  • further strengthen electronic transactions by providing additional tax incentives for individuals. 30% of the expenses incurred by electronic means of payment to Health professionals and up to the amount of 5,000 euros per year, will be deducted from the taxable income of individuals.
  • extension of the reduction of the VAT rate from 24% to 13% in gyms, swimming pools and dance schools, as well as the transfer of the VAT rate for animal feed to the reduced VAT rate of 6%, on a permanent basis.  

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