The first thing you must understand about what net salary is is that it corresponds to your remuneration after a series of deductions.

There are several subtractions that occur from the income of workers in the private and public sector. They are for public reasons and for access to Social Security.

In fact, even those who are entrepreneurs and self-employed must also make contributions. The only difference is that here it is not a question of salary, but of deductions from income.

Want to know more? So keep reading and see how your income works. Check out more about salary, discounts and final values!

The net salary is what you receive at the end of the working month. In other words, it is the value that actually reaches you.

It is obtained after making a series of deductions on the gross or gross salary. Therefore, your remuneration is greater than what actually ends up in the account.

These discounts are provided for by law and serve to provide access to services and programs. Likewise, for the purpose of collecting taxes in favor of the State.

The worker's payroll must contain all this data. It must clarify what the gross value is and what will be the basis for discounts.

In addition, you must also clarify which discounts are available there, one by one, indicating the value of each one.

Check, in the items below, the discounts that occur in the worker's salary. It is worth noting that they do not account for advance payments!

The first deduction that occurs in the worker's gross salary corresponds to Social Security deductions. It is the equivalent of INSS payments in Brazil.

Social Security corresponds to the social security body in Portugal. Therefore, all workers must contribute to it, which gives access to programs and services.

The discount rate for Social Security is 11% of the gross salary. This proportion applies to both private and public sector workers.

Therefore, if someone receives a salary of €1000, the monthly contribution to Social Security will be €111.

This is a discount that occurs in the gross salary so that the worker has access to social security services and benefits in Portugal.

Thus, by contributing to it, the worker can have access to the following benefits:

Therefore, it is very important that there are contributions in favor of the body and not doing so amounts to tax evasion.

Another discount that occurs on the gross salary to arrive at what is the net salary corresponds to the IRS (Personal Income Tax).

It varies depending on a number of conditions. For example, it considers what the gross salary is, the worker's marital status and the existence of dependents (and how many there are).

Furthermore, taxes for workers with disabilities and those without disabilities (general regime) are different. Therefore, here it is necessary to analyze a number of issues.

In addition, be aware that a table is updated annually that establishes the discount (contribution) for each salary range.

The table that establishes the deductions that can be made from the gross salary for IRS purposes also establishes the exemption range.

In other words, there are workers who do not receive IRS deductions, as they are exempt. They are those with the lowest income brackets.

In 2022, it is possible to receive up to €9,940 per year and be exempt. Therefore, income with higher amounts requires IRS payment, while smaller amounts do not.

However, be careful! After all, when adding up your income it is necessary to consider that Portugal has 14 salaries per year.

But how so? In addition to the 12 regular incomes, there is also the payment of the Christmas bonus and another mid-year summer bonus.

In addition, it is necessary to consider holiday amounts in income. Therefore, for someone to be exempt from IRS, their gross salary must be up to 710 Euros net (already with Social Security deduction).

Still, another discount that may occur on the remuneration before we get to what the net salary is refers to the food allowance.

In Portugal the minimum subsidy for food is 4.77 Euros per day. If the value is higher, it may generate discounts on remuneration. This only does not happen if paid by meal card.

The company itself is responsible for transforming net salary into gross salary. She is the one who makes the collections, so the worker does not need to make them.

Thus, the value that reaches the worker corresponds exactly to what is available to him.

In other words, he does not need to worry about withdrawing the amounts to contribute to Social Security or the IRS. Therefore, the price is already right and with the discounts.

Finally, know that it is possible to track all discounts and their respective amounts on the payroll.

And if you want to know a little more about other subjects, see below what Child Aid is and find out how to apply for it, if you are eligible.