Increased subsistence wage will impact social benefits and taxes

Some will go up by several euros.

Illustrative stock photoIllustrative stock photo (Source: Archive of Sme)

The subsistence wage will increase from July 1, impacting several related social benefits and tax bonuses.

The sum one adult person receives will rise by 1.5 percent (or €3.23) to €218.06, the SITA newswire reported.

At the same time, the sum for a second person living with a person receiving the subsistence wage will increase as well, by €2.25 to €152.12, from the beginning of July. Regarding a dependent child or a dependent minor, the amount of the subsistence wage will go up by €1.48 to €99.56.

Increase in pensions

As a result, the minimum early retirement pension and contributions for graduate practice and activation work via volunteering service, as well as the maximum sum of the substitute maintenance payment, will go up by 1.5 percent.

The sum of the minimum early retirement pension will amount to €261.70 from July, up by €3.90. If the early retirement of an applicant is lower, he/she will not be entitled to it, SITA wrote.

Pregnant women are entitled to new benefit Read more 

Moreover, the state-run social insurer Sociálna Poisťovňa will pay out higher pensions to those whose pension needs to be lowered by so-called execution deductions. The amount that the pensioner must be left with after deductions needs to equal the subsistence wage, i.e. €218.06.

Tax bonuses impacted

The tax bonus for a child living with the taxpayer will increase as well, but not from July. The sum will go up from the beginning of next year.

The bonus for a maintained child aged six to 15 will go up by 64 cents to €43.60 a month, and for a child younger than six by 70 cents to €47.14. The tax bonus for a child older than 15 will increase by 34 cents to €23.56.

The non-taxable part of the tax base, which equals 21 times the subsistence wage, will go up next year by €67.83 to €4,579.26.

The benefits in material need will also increase by 1.5 percent from the beginning of next year.

Paternity leave will be easier from May 1 Read more 

The child allowance will rise by 38 cents to €25.88 from the beginning of next year.

Parents who worked before taking parental leave will see an increase in the parental allowance by €5.70 to €383.30 from next year. Parents who did not work before the birth of the child, and therefore did not receive the maternity benefit, will see their parental allowance increased by €4.10 to €280, as reported by SITA.

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