The additional IRS reduction announced by the prime minister for 2026 will require companies and other income-paying entities to adjust their withholding tables at least twice in a few months. The changes are planned for November and January.
The government will proceed with an extraordinary update of the withholding tables in November, as a compensation measure for the impact of the State Budget for 2025. This will be the first change following the announcement made by the prime minister.
In January, the paying entities will have to proceed with a new adjustment of the tables, this time to reflect the additional IRS reduction promised by the prime minister for 2026. This second adjustment aims to anticipate the effects of the tax reduction that was initially planned for next year.
Companies and other paying entities thus face the challenge of managing two consecutive changes to the withholding tables in a short period of time, which implies additional administrative procedures and the need to ensure that workers see their net salaries adjusted accordingly.
