On December 5, two Executive Decrees were published updating the Salary Income Tax brackets and minimum wages applicable to the private sector. These adjustments will take effect as of January 1, 2026.
Main Changes to Salary Income Tax (Decree No. 45333-H):
I. -0.38% adjustment to the tax brackets outlined in Article 33 (Salary Income Tax) and to the tax credits established in Article 34 of the Income Tax Law.
New Monthly Income Tax Brackets:
- Up to ¢918,000: Exempt.
- From ¢918,000 to ¢1,347,000: 10%.
- From ¢1,347,000 to ¢2,364,000: 15%.
- From ¢2,364,000 to ¢4,727,000: 20%.
- Amounts exceeding ¢4,727,000: 25%.
II. Updated Tax Credits:
- ¢1,710 per dependent child.
- ¢2,590 per spouse
Legal Basis:
Executive Decree No. 45333-H, issued by the Executive Branch and published in La Gaceta No. 229 on Friday, December 5.
See: Documento anexo en formato pdf.
Update to Statutory Minimum Wages for 2026 (Executive Decree No. 45303 – Ministry of Labor and Social Security – as its acronym in Spanish - MTSS
I. A general increase of 1.63% applicable to all statutory minimum wages.
II. Additional adjustments by occupational category:
III. Domestic Worker: +2.33962%.
IV. Generic Skilled Occupation: +0.556288%.
V. Mid-Level Technician in Diversified Secondary Education: +0.88768%.
This Decree was published in Special Supplement No. 156 to La Gaceta No. 229 dated December 5, 2025.
Important:
These adjustments do not modify higher wages established under individual employment contracts, collective bargaining agreements, or special statutory regulations.
Effective Date:
All provisions take effect on January 1st, 2026.
Legal Basis:
Executive Decree No. 45303, issued by the Ministry of Labor and Social Security, which sets the statutory minimum wages, was published in Special Supplement No. 156 to La Gaceta No. 229 on Friday, December 5, 2025.
See: Documento anexo en formato pdf.
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