The Government formalized this Wednesday through the Official Gazette the update of the income ceiling for receiving family allowances. With this latest change, announced just under two weeks ago, the limit will go from $158,000 to $404,000, a figure that was set for equalize the tax base.
Decree 101/2023, signed by Alberto Fernández, the head of cabinet, Agustín Rossi, and almost all the ministers, established that the new discipline “will apply to family allowances whose payment is made from March 2023”.
This way, 900,000 children will be incorporated into the system and 600,000 workers will benefit, although due to not adjusting the limit for 12 months, the amounts will continue to pile up heavy loss to inflation.
Taking that same period as a reference, the family allowance will have an increase of 79.9%, against inflation which at the time of collection of the benefit – from March to May – will exceed 100%. It represents a loss of no less than 15% which adds to the setback they had in the previous 4 years and which was of the order of over 25%.
The provision, which according to the premises of the decree “is of an urgent nature”, will have a fiscal cost of approximately 4,000 million dollars a month, therefore this year it will require an effort of 40,000 million dollars.
As explained by the Government, the updating of the amount will be “permanent” and every time the floor for which Irpef is paid is changed, the ceiling up to which the family salary is received will also be updated.
The new amounts, range by range
With the new values, the rank I of income up to $177,554 will receive an amount of $11,465, while the rank II with an income between $177,554.01 and $260,403, you will receive a sum of $7,732.
Meanwhile, a rank III With income between $260,403.01 and $300,645, you will be awarded an allowance of $4,675; and the rank IV with income between $300,645.01 and $808,124, you’ll make a profit of $2,410.
Above the new limit of $404,062, the father or mother can deduct an amount from the tax base for their children.
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Source: Clarin
