Exemption comes with an increase in the minimum wage. The ceiling for exemption was R$2,640, the equivalent of two minimum wages last year. This means that with the adjustment to R$1,412 in January 2024, workers who received less than two salaries (considering the updated value) would have the payroll deduction. The provisional measure that was in force already adjusted this change.
The maximum limit of the exemption range in the new IR table is R$2,259.20. To exempt those earning up to R$2,824, a simplified discount of R$564.80 will be applied at source, on which income tax should be charged. Currently, the benefit serves those who receive up to R$2,112.
The president used the space to reinforce that his government plans to expand the exemption range for those earning up to R$5,000. The promise is a constant target of demands from the opposition to the PT administration.
I promised you that, until the end of my term, up to R$5,000 people will not pay income tax. And the word continues to stand. Starting today, anyone who earns R$2,824 pays zero income tax, and we will reach R$5,000.
President Lula
