What causes decrease in the annual TEAI?

The monthly TEAI applied by the employer during the calendar year is calculated taking into account only the amount of wages (with supplements and bonuses) and sickness benefit for the first two days of illness, and the annual TEAI is calculated after estimating the total income (with some exceptions) received by the resident in the calendar year that is classified as taxable income.

The annual TEAI may decrease due to:

• wages received in a calendar year from two (or more) employers when, at the request of the resident, one of them applied the TEA;
• receipt of other taxable income (royalties, profit sharing, income from registered individual activity, dividends, rental income, etc.);
• variable wages, bonuses received.

Important: the annual TEAI also decreases because of sickness benefits received, because the employer applies the monthly TEAI taking into account the amount of the monthly wages and sickness benefit for the first days of illness that is paid by the employer itself, and, considering the total amount of wages and sickness benefits (including that paid by Sodra), the monthly TEAI of that month decreases.