Calculating the Real Gain: Expert Breaks Down the Impact of Recent Salary Increases

As employees across the board calculate their future take-home pay in light of recent salary hikes, expert fiscal Mohamed Salah Ayari sheds light on the reality of net gains after taxes. With the progressive tax scale, social security contributions, and family deductions in play, Ayari explains why the perceived increase on the pay slip differs from estimates and the announced gross amount, while highlighting new measures in favor of retirees outlined in the finance law.

From Gross to Net: The Calculation Process

Appearing on the "Sabah El Ward" show on Jawhara FM, Ayari clarified that the income tax (IRPP) does not directly apply to the gross salary. The calculation process involves a precise sequence of steps, starting with the deduction of social security contributions, followed by the determination of the taxable gross income after applying certain allowances. Notably, a 10% deduction is made for professional expenses, increasing to 25% for retirees.

Ayari also emphasized the role of "family charges deductions" in alleviating the tax burden. A deduction of 300 dinars is granted to the head of household, supplemented by 100 dinars for each dependent child, with additional benefits planned for specific situations.

The Real Increase After Taxes

To illustrate his points, Ayari presented practical examples demonstrating the net increase after deductions. For instance, an employee earning 1,000 DT, with a gross increase of 90 DT, would actually receive around 68 dinars more on their net salary. Conversely, an employee earning 2,000 DT with a gross increase of 100 DT would have a net gain of approximately 70 dinars. For an employee earning 3,000 DT with a gross increase of 120 DT, they would ultimately receive around 72 dinars more.

Ayari attributes this discrepancy to the "progressive tax scale." Tax rates range from a complete exemption (0% for annual incomes below 5,000 DT) to 40% for the highest income brackets. He stressed that the tax is calculated by tranches, not a single rate applied to the entire income.

A Boost for Retirees

In this context, the expert revealed that the new finance law includes positive orientations for retirees. The plan is to gradually increase the abatement rate, rising from 25% to 50% by 2029, which will automatically strengthen their net income.

Note: The original article is in French, and the translation is provided in Markdown format. The content has been adapted to fit the Markdown structure while maintaining the original meaning and context.