Article 19.Dos.2 of Law 31/2022, of December 23, on the General State Budgets for the year 2023 established the following increases with respect to the remunerations in force as of December 31, 2022 and with effect, in both cases , from January 1, 2023:

1. «Increase linked to the evolution of the Harmonized Consumer Price Index (HICP). If the sum of the IPCA for the year 2022 and the advanced IPCA for the month of September 2023 is greater than 6 percent, a maximum additional remuneration increase of 0.5 percent will be applied. For these purposes, once the advance IPCA data for the month of September 2023 is published by the National Institute of Statistics (INE), the application of this increase will be approved by Agreement of the Council of Ministers, which will be published in the BOE.

2. Increase linked to the evolution of the nominal Gross Domestic Product (GDP) in 2023. If the increase in nominal GDP equals or exceeds that estimated by the Government in the macroeconomic table that accompanies the preparation of this Budget Law, a complementary remuneration increase of 0.5 percent will be applied.

   For these purposes, once the 2023 GDP progress data is published by the INE, the application of this increase will be approved by Agreement of the Council of Ministers, which will be published in the BOE.

In relation to the above, it is appropriate to cite the Resolution of February 7, 2024, of the Secretary of State for Budgets and Expenses, by which the Agreement of the Council of Ministers of February 6, 2024 is published, which approves the increase of 0.5 percent in the remuneration of personnel serving the public sector in application of the provisions of article 19.Dos.2.b) of Law 31/2022, of December 23, on General Budgets of the Status for the year 2023 (BOE of February 8). The first Instruction of this Resolution establishes:

"The complementary increase of 0.5 percent will be calculated on the salaries in force as of December 31, 2022, will take effect from January 1, 2023 and will be paid in the payroll for the month of February 2024, unless the responsible qualification does not has all the necessary formal elements or in other cases in which for technical reasons it is not possible, in which case it will be paid in the first payroll in which it is possible. 

The arrears from January 2023 corresponding to the 0.5 percent increase will be paid under the same terms set out in the previous paragraph."

From a tax point of view, the temporary imputation of income is included in article 14 of Law 35/2006, of November 28, on Personal Income Tax and partial modification of the Tax laws. on Companies, on Non-Resident Income and on Assets, an article that in letter a) of section 1 establishes as a general rule for income from work its imputation “to the tax period in which it is payable for its percipient".

Consequently:

• The remuneration amounts corresponding to the increase provided for in article 19.Dos.2.b) of Law 31/2022, of December 23, on General State Budgets for the year 2023, must be attributed to the period in which, through its regulation in the aforementioned precepts are enforceable, this is the tax period 2024.

• The payers of these salary increases must declare them in form 190 corresponding to fiscal year 2024 (to be presented in January 2025).

• The recipients of these salary increases will declare them, if applicable, in their personal income tax return for the 2024 financial year (to be submitted in 2025). In no case should they be included in the personal income tax return for the 2023 financial year, whose submission period begins on April 3, 2024.