As of next year, all wage earners will have the same personal income tax (PIT) minimum of €510, but the tax rates themselves will change, the Saeima decided on Wednesday, December 4, as part of the budget viewing framework.
70 MPs voted in favor of the changes, 11 voted against.
The tax rates will be 25.5% for income up to €105,300 per year, or €8,775 per month, and 33% for income above €8,775 per month.
Currently, the rate of personal income tax is 20% for annual income up to €20,004; 23% for the part of annual income exceeding €20,004; and 31% for the part of annual income exceeding €78,100, which is the maximum amount of compulsory and voluntary social contributions at present (from 1 January 2025, this maximum amount is set at €105,300).
In future, there will be two rates – 25.5% and 33%.
The current differentiated non-taxable minimum will be replaced in 2025 by a single (fixed) non-taxable minimum, applicable to all workers regardless of salary.
The non-taxable minimum is planned to be €510 per month in 2025, €550 per month in 2026, and €570 per month in 2027.
At the same time, the non-taxable minimum for pensioners will rise from €6,000 a year (€500 a month) to €12,000 a year (€1,000 a month) from 2025.
The minimum wage will also rise – in 2025, the national minimum wage will be set at €740 a month, €40 more than now.
