Towards the extension of the tax wedge cut in the 2024 Budget Law. The goal is to protect those on medium-low incomes and up to the threshold of 35,000 euros, the payroll bonus already provided for in July would be guaranteed
Cutting the tax wedge with confirmation also in 2024 the Budget Law currently being finalized will have among its priorities the extension of the payroll bonus for employees. Council of Ministers of 28 August first opportunity to take stock of the measures expected from the Maneuver.
The government’s goal is to confirm the cut in the tax wedge, which represents a “concrete measure that arrives every month in the workers’ pay packet”.
This is what was stated by the Prime Minister and therefore also for 2024 on the salaries of income earners up to 35,000 euros the contribution discount will be guaranteed which, to date, leads to the recognition of an additional sum up to approximately 100 euros.
Cutting the tax wedge towards the extension of the 2024 Budget Law
In the construction site that has just been inaugurated on the development of the 2024 Budget Law, the confirmation of the cut in the tax wedge seems to be one of the few certainties for the moment. The Government intends to allocate the necessary resources for the confirmation of the subsidy in workers’ paychecks employees also for next year, to avoid the risk of a reduction in salaries caused by the stop to the measure.
It is about the contribution exemption in payroll recognized as from 1 January 2023 and which for the second half of the year was increased, going from 2% to 6% for salaries up to 2,692 euros per month and from 3% to 7% for those up to 1,923 euros.
Those with incomes not exceeding the threshold of 35,000 euros are entitled to it, a ceiling on which no changes should be foreseen by the 2024 Budget Law. The value of the contribution cut is higher for those who receive wages of up to 25,000 euros.
Payroll bonus of up to 100 euros: how much is the cut in the tax wedge worth?
The text of the 2024 Budget Law will clearly define the perimeter of the measures envisaged for employees and it is therefore still too early to talk about certainties. However, if the cut in the tax wedge were confirmed as expected to date, the payroll benefit would arrive up to about 100 euros per month. The calculation of the benefit due is carried out on a monthly basis by the employer, who applies the contribution cut based on the salary paid.
According to the simulations provided by the Employment Consultants, the payroll discount is equal to approximately 108 euros per month for those with incomes of up to 2,692 euros per month. In the case of lower value incomes, the value of the cut in the tax wedge decreases, being linked to the share of contributions due monthly by the worker, passing to approximately 75 euros total for salaries up to 1,500 euros ea 50 euros for holders of income up to 1,000 euros.
These are the amounts envisaged from 1 July to 31 December of the current year, for which confirmation is therefore also awaited for next year.
Source-www.adnkronos.com