The proposed State Budget law for 2025 provides for a series of measures with a direct impact on family income.
From raising the minimum wage to updating income tax brackets, find out, in this article, the main proposed measures that can benefit you.
National minimum wage increases to 870 euros
Next year, the national minimum wage will increase by R$50, from the current R$820 to R$870.
The agreement signed between the government and social partners foresees that the minimum wage will continue to increase at a rate of 50 euros per year over the next four years, reaching 1,020 euros in 2028.
IRS brackets updated at 4.6%
The income tax brackets will be updated by 4.6%, double the expected inflation rate (2.3%), but slightly below the benchmark for salary increases, of 4.7%. This means that workers who, in 2025, have a salary increase of up to 4.6% will not move up a band.
IRS Jovem expanded to all workers up to 35 years old
There will be changes to the IRS Jovem regime that will no longer be conditioned by the completion of the study cycle.
Therefore, this benefit now applies to all young people up to 35 years of age, regardless of their level of training.
In the first year, young people benefit from a total exemption; from the second to the fourth year the exemption decreases to 75%; from the fifth to the seventh year, the exemption will be 50%; and between the eighth and tenth grade, 25%.
Meal allowance on tax-free card up to 10.20 euros
The level up to which meal allowance paid by card is tax-free should rise from the current R$9.60 to R$10.20. This is because the new budget foresees that the legal limit that defines the exemption of the allowance paid by card will rise from 60% to 70% in relation to the amount paid in cash.
Withholding tax drops by half during overtime
Income tax withholding for extraordinary work, such as overtime, will now be half the rate applied to the worker’s monthly remuneration.
Increases of 52.6 euros in the Public Service
Next year, employees will have a salary adjustment of R$52.6, or at least 2%, as defined in the income agreement signed by the previous executive.
New bonus for pensioners
The Government intends to move forward with the payment of a new supplement, between 100 and 200 euros for the lowest pensions.
IMT exemption when purchasing a house increases to 104,261 euros
The level up to which there is exemption from paying the Municipal Tax on Onerous Transfer of Real Estate (IMT) on the acquisition of own and permanent homes will rise in line with the inflation forecast for 2025, of 2.3%. Therefore, next year, the limit will be set at 104,261 euros.
In the case of purchases made by young people up to 35 years of age, the exemption value increases to R$324,058.
ISV and IUC do not change, but fuels become more expensive
In 2025, there is good news and bad news for drivers. Both the Vehicle Tax (ISV) and the Single Circulation Tax (IUC) will not change. However, fuel is expected to become more expensive, as the government decided to end the exemption from paying the Tax on Petroleum Products (ISP).
Need more information about how these measures could benefit your business? Brasil & Ávila professionals are at your disposal to clarify any doubts and help you maximize the financial advantages associated with the announced measures.