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<\/a><\/p>\nAmong the most significant changes are the increase in the national minimum wage, the update of meal allowance tax exemption limits, the extension of the IRS Jovem (Youth IRS) scheme, and the modification of withholding tax rates on overtime work.<\/p>\n
To ensure compliance with these new legal provisions, partnering with specialized companies such as NOMINAUREA <\/a>is essential.<\/p>\n 1. Increase in the National Minimum Wage<\/strong><\/p>\n As of January 1, 2025, the national minimum wage has been updated to:<\/p>\n \u2022 Mainland Portugal:<\/strong> \u20ac870.00<\/p>\n \u2022 Autonomous Region of Madeira:<\/strong> \u20ac915.00<\/p>\n \u2022 Autonomous Region of the Azores:<\/strong> \u20ac913.50<\/p>\n This measure aims to improve the living conditions of low-wage workers and promote fair pay.<\/p>\n 2. Update of Meal Allowance Tax Exemption Limits<\/strong><\/p>\n The meal allowance is subject to IRS withholding and Social Security contributions when it exceeds certain exemption limits. In 2025, these limits have been updated to:<\/p>\n \u2022 Paid in cash:<\/strong> \u20ac6.00 per day (unchanged)<\/p>\n \u2022 Paid via meal card:<\/strong> \u20ac10.20 per day<\/p>\n This change encourages companies to opt for meal card payments, offering tax benefits for both employers and employees.<\/p>\n 3. Extension of the IRS Jovem (Youth IRS) Scheme<\/strong><\/p>\n The IRS Jovem scheme has been extended to cover a period of ten years, either consecutive or non-consecutive, starting from the moment a young worker leaves their parents\u2019 household and files their own IRS tax return.<\/p>\n The applicable tax exemptions are:<\/p>\n \u2022 100%<\/strong> in the first year of professional activity<\/p>\n \u2022 75%<\/strong> between the second and fourth years<\/p>\n \u2022 50%<\/strong> between the fifth and seventh years<\/p>\n \u2022 25%<\/strong> between the eighth and tenth years<\/p>\n This scheme applies to all young people up to 35 years old, regardless of their educational qualifications, with an exemption limit of 55 times the IAS value, approximately \u20ac28,700.00.<\/p>\n 4. Changes to Withholding Tax on Overtime Work<\/strong><\/p>\n The withholding tax rate on overtime work has been reduced to 50% of the standard withholding tax rate applied to the employee\u2019s monthly salary for the month in which the overtime is paid or made available.<\/p>\n Previously, this 50% reduction was only applied from the 101st hour of overtime work.<\/p>\n Conclusion<\/strong><\/p>\n The changes introduced by the 2025 State Budget require companies to carefully adapt to ensure compliance with the new legal provisions regarding payroll processing.<\/p>\n In this context, partnering with specialized companies like NOMINAUREA <\/a>is crucial to ensure regulatory compliance and efficiency in human resources and payroll management.<\/p>\n