Have you noticed the significant annual change affecting your wallets? The world of work is constantly evolving, and keeping up with legislative updates is crucial—not only for those seeking a new job but also for anyone who wants to stay informed about their rights and responsibilities. As a recruitment agency, we know that the Labor Code and related legal changes directly impact employees, not just in terms of employment law matters.
One of the most important changes with a broad impact on social conditions, financial stability, and everyday life is the annual increase of the subsistence minimum. As of July 1, 2025, this amount was raised to €283.14 to partially offset the rise in living costs. What specific changes does this bring for you?
Subsistence Minimum and Its Impact on Your Income
The increase in the subsistence minimum affects several areas that impact your finances. Whether you are a company, an employee, a job seeker, or a benefits recipient, these changes concern you.
1. Wage and Pension Deductions for Debt Collection:
Do you have debt collections? As of July 1, 2025, the non-deductible amount that must remain with you after deductions is increasing. This important protection ensures that even in difficult financial situations, you have enough funds for basic living needs.
- Non-Deductible Amount from Wages: It increases to €397.78 plus 25% of the subsistence minimum for each dependent person.
2. Early Retirement Pension:
Considering early retirement? It’s important to know that eligibility for an early retirement pension is now assessed based on the updated amount. To qualify, the newly granted pension must reach at least 1.6 times the subsistence minimum, which is now €454.70.
3. Maximum Allowance for Job Seekers:
Did you know that you can work while receiving unemployment benefits? As of July 1, 2025, the rules for registered job seekers are changing. If you are registered, you can earn extra income, but your maximum monthly allowance must not exceed €284.13 to avoid being removed from the employment office records.
OTHER CHANGES:
- Parental Allowance (from January 1, 2026):
- If the parent did not receive maternity benefits for the child: €364.80
- If the parent received maternity benefits for the child: €500.10
- Non-Taxable Portion of the Tax Base (from January 1, 2026): The non-taxable portion of the tax base for a taxpayer is increasing to €497.23 per month.
- Social Assistance Benefits (from January 1, 2026): The amounts of social assistance benefits and allowances will also be adjusted by 3.7%.
- Threshold for Applying the Higher Tax Rate (from January 1, 2026): The tax base threshold for applying the 25% tax rate is increasing. The tax base exceeding 176.8 times the current subsistence minimum, i.e., over €50,234.18, will be subject to the higher rate.
Career Planning and Financial Stability
Struggling to navigate the maze of legislative changes? It’s important to have a reliable partner by your side. At Talent Solutions, we specialize not only in talent recruiting and helping you find your next job but also in sourcing top talent for your company.
We are here to help you transition into the next stage of your career and ensure that, with the right recruitment agency, you avoid any uncertainties related to the Labor Code.
If you are looking for stable employment and want to be sure your rights are protected, we are here for you. If you are seeking reliable candidates, we are here for you as well. We build bridges, connecting the right candidates with the right companies, and ensure the professional operation of your modern HR.
