Article 19.Two.2 of Law 31/2022, of December 23, on the General State Budget for the year 2023 established the following increases with respect to the remuneration 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 Index of Consumer Prices (HICP). If the sum of the 2022 HICP and the advanced HICP for September 2023 is greater than 6 percent, an additional maximum salary increase of 0.5 percent will be applied. For these purposes, once the data of the advanced HICP for the month of September 2023 have been 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 nominal Gross Domestic Product (GDP) in 2023. If the increase in nominal GDP equals or exceeds the amount estimated by the Government in the macroeconomic framework accompanying the preparation of this Budget Law, a complementary salary increase of 0.5 percent will be applied.

   For these purposes, once the INE has published the GDP advance data for 2023, the application of this increase will be approved by means of an 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, which publishes the Agreement of the Council of Ministers of February 6, 2024, approving the increase of 0.5 percent in the remuneration of personnel in the service of the public sector in application of the provisions of article 19.Two.2.b) of Law 31/2022, of December 23, on the General State Budget for the year 2023 (BOE of February 8). The first Instruction of this Resolution establishes:

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

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 perspective, the temporary imputation of income is included in article 14 of Law 35/2006, of November 28, on Personal Income Tax and partial amendment of the laws on Corporate Tax, Non-Resident Income Tax and Wealth Tax, article which in letter a) of section 1 establishes as a general rule for income from work its imputation “to the tax period in which they are due by their recipient”.

Consequently:

• The remuneration amounts corresponding to the increase provided for in article 19.Two.2.b) of Law 31/2022, of December 23, on the General State Budget for the year 2023, must be imputed to the period in which, through its regulation in the aforementioned provisions, they are payable, that is, the tax period 2024.

• Payers of these salary increases must declare them in the form 190 corresponding to the year 2024 (to be submitted in January 2025).

• Recipients of these salary increases will declare them, where applicable, in their Personal Income Tax return for the year 2024 (to be submitted in 2025). Under no circumstances should they be included in the personal income tax return for the 2023 financial year, the filing period for which begins on April 3, 2024.