They seek to adjust salaries that pay income taxes

They seek to adjust salaries that pay income taxes

One of the issues on the agenda of the representatives of the working class is the adjustment of the ceiling of the salaries who are exempt from paying income taxes (ISR), so that the employees who are able to collect between the range of 34,685 pesos for readjustment of wages Due to inflation, the ISR is not discounted. The fiscal issue is added to the demand for a 30% increase in salaries due to the inflation rates in the country.

The president of the National Confederation of Union Unity (CNUS), Rafael-Pepe-Abreu, explained yesterday that many staff that they do not pay the income tax for earning less than 34,000 pesos, you could see affected if the tax issue is not evaluated in the salary adjustment proposals.

“We are in nothing if the increases are achieved and the working class ends up being taxed with a proportion that is minimal for employers and for the State, but represents a deficit for the worker,” he explained to Free Daily the union leader.

The income tax taxes all income, utility or benefit, obtained by individuals, companies and undivided estates, in a given fiscal period, that is, those who work and earn more than 34,685 pesos per month are withholding entities and your employer will discounting a monthly amount for income tax.

The last time the stop was adjusted wages who do not pay taxes was in 2016, after the approval of the Law 253-12, dated November 9, 2012 during the first term of government of former President Danilo Medina. “A recoil that continues to permeate the stage for settings wages in the country”, considered Abreu.

six years without review

He specified that six years have passed since the last revision of that chapter on tax issues. In this sense, the union representative explained that the confederation has tried to expose the issue and its consequences in the economy of the employees with the different representatives of the General Directorate of Internal Taxes (DGII).

In a letter requesting approval of the application of article 296 of the Tributary Codesent to the Minister of Public Administration, Darío Castillo, the trade union central explains that the employees are being forced to pay a income tax with wages that are below the cost of the basic basket of goods and services.

“We request that for the 2023 budget the application of article 296 of Law 11-92 is not suspended, since it is an important conquest of the working class that has been mediated based on an inappropriate legal artifice”, says the document sent on August 31 of this 2022.

The objective of the communication was to be able to advance a “necessary” process for the issue of social pact for the adjustment of the wages that it has been developing during the last months of this year, advanced by a proposal from the National Council of Private Enterprise (Conep) to voluntarily adjust the wages for inflation.

What are the preparations to raise the wages?

Abreu reported that the last meeting to talk about the topic of settings in the wages due to the increase in the prices of products and services of the basic family basket was last week, between December 5 and 9.

“The meeting took place between the Minister of LaborLuis Miguel De Camps, and representatives of the union confederation”, he explained, while commenting that the businessmen made a public announcement that they are not honoring.

Due to the festive dates corresponding to December, it will be for January 2023 when talks continue on adjustments to the wagesthe date on which it is expected to reach a fair agreement that will improve the quality of life of the workers, Abreu commented.

The proposals that had already been submitted and are in the process of assessment are:

  • Businessmen They propose a relative increase of 10%, based on the calculation of the inflation rate by the Central Bank of the Dominican Republic.
  • trade unionists They advocate an increase of between 25 and 30% to compensate for the loss in 20 years of the purchasing power of workers.
  • Ministry of Labor He hopes to reach a consensus on a social agreement that will contribute to raising the dialogue on the salary issue, and that the adjustments be made every two years, instead of making them annually.

Dominican journalist specializing in economics and finance, graduated from the Dominican O&M University.

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