Individual - Significant developments

Last reviewed - 19 February 2024

Starting from 1 January 2024, the higher 32% personal income tax (PIT) rate for the income exceeding the threshold of 114,162 euros (EUR) should be applied. 

Employment income exceeding the EUR 114,162 threshold is subject to a lower rate of social security contributions at 6.98%. Employer‘s social security contributions of 1.77% (standard rate) are not capped.

The legislation was amended where the possibility to refund social security contributions paid during the calendar year at a standard rate was foreseen for the employees having more than one employer and exceeding the aforementioned annual income threshold in total. In previous years, social security contributions ceilings were applied to each employer separately, and the refund was not possible even if the annual threshold was reached by adding the individual's income from all employers.

Taxation of other personal income was slightly reduced, and the progressive PIT rate at 20% is applied to annual income exceeding EUR 228,324.