What’s in the decree approved yesterday, May 1, by the Council of Ministers
Labor decree 2023 approved yesterday, May 1, by the Council of Ministers. The text, as explained in a government note, “intervenes with measures aimed at reducing the tax wedge, for the contribution part, for employees with gross annual incomes of up to 35,000 euros; at combating poverty and social exclusion , with particular attention to families in which there are fragile, minor or elderly individuals; to promote active employment policies, with the aim of ensuring adequate training for those who do not have a job and are able to carry out a activity and to facilitate the meeting between demand and offer of work. Urgent interventions are then introduced aimed at strengthening the rules of safety at work and protection against accidents and the discipline of the fixed-term employment contract is modified”. Here’s what it provides and the main measures:
TAX WEDGE – The decree “intervenes with measures aimed at reducing the tax wedge, for the contribution part, towards employees with gross annual incomes of up to 35,000 euros; at combating poverty and social exclusion, with particular attention to families which include fragile individuals, minors or the elderly; to promote active employment policies, with the aim of ensuring adequate training for those who are unemployed and are able to carry out a job and to encourage the meeting between supply and demand for work”, as stated in the note released by Palazzo Chigi.
THE ‘NEW’ CITIZENSHIP INCOME AND THE INCLUSION ALLOWANCE – At least 480 euros per month as a subsidy against poverty, if you have minors, disabled or elderly dependents. This is what the ‘new’ citizen’s income approved by the government provides. “From 1 January 2024 – reads the note released by Palazzo Chigi after the CDM – a national measure to combat poverty is introduced, which consists of an income supplement in favor of families that include a person with a disability, a minor or over sixty and who meet certain requirements relating to the applicant’s citizenship or residence authorisation, the duration of residence in Italy and economic conditions.The monthly benefit, for an amount of no less than 480 euros per years exempt from IRPEF, will be disbursed by INPS through an electronic payment instrument, for a maximum period of 18 continuous months, with the possibility of renewal for a further 12 months.The beneficiary nucleus will be required to sign a digital activation agreement and to report, on a quarterly basis, to the patronage or social services and employment centres, in order to update one’s position”. Who loses it if he refuses a job offer.
Inclusion allowance, therefore, arriving in 2024. The draft of the 2023 work decree provides for it, which outlines the framework – with requirements and figures – relating to the instrument intended to replace the basic income. In the draft of the decree, the check will have a limit of 5.5 billion which, when fully operational, will reach 6.4 billion in 2033. ”For the purpose of disbursing the economic benefit of the inclusion check, the total expenditure of €5,472.7 million for the year 2024, €5,695.0 million for the year 2025, €5,623.6 million for the year 2026, €5,733.6 million for the year 2027, €5,844 .7 million euros for the year 2028, 5,958.0 million euros for the year 2029, 6,073.6 million euros for the year 2030, 6,191.4 million euros for the year 2031, 6,311.6 million euros for the year 2032, 6,434.1 million euros per year starting from the year 2033”.
Who will receive the check? What are the requirements to apply? The applicant must be an EU citizen, or a family member holding the right of residence or the right of permanent residence, or a citizen of third countries in possession of the EU residence permit for long-term residents, or holder of international protection status. Furthermore, at the time of submitting the application, he must have been resident in Italy for at least five years, of which the last two years continuously.
On the ‘economic’ front, a valid ISEE value of less than 9,360 euros is required, a value that is remodulated in the case of families with minors. Furthermore, the value of family income must be lower than a threshold of 6,000 euros per year multiplied by the corresponding parameter of the equivalence scale (presence of minor children, members with disabilities or non-self-sufficient, etc.). Family income also includes direct pensions and indirect, in the course of enjoyment by the members of the family nucleus. In calculating family income, on the other hand, what is received by way of Inclusion Allowance, Citizenship Income or other national or regional measures to combat poverty is not counted.
The applicant must not have a real estate value of more than 30,000 euros, as defined for ISEE purposes, if different from the residential house of value for IMU purposes not exceeding 150,000 euros. On the other hand, the movable assets must not exceed a threshold of 6,000 euros, increased by 2,000 euros for each member of the family following the first, up to a maximum of 10,000 euros, increased by a further 1,000 euros for each minor following the second. But these ceilings are further increased for each component in a condition of disability or non-self-sufficiency.
As for the assets available to the nucleus, no component must be the owner in any capacity or have full availability of motor vehicles with engine capacity exceeding 1600 cc. o motorcycles with an engine capacity exceeding 250 cc., registered for the first time in the thirty-six months prior to the request, excluding motor vehicles and motorcycles for which a tax concession is provided for people with disabilities. Furthermore, no component must be the owner of ships and pleasure boats or aircraft of any kind.
SAFETY – “Urgent interventions are then introduced aimed at strengthening the rules of safety in the workplace and protection against accidents and the discipline of the fixed-term employment contract is modified”. The provision also introduces measures to support workers and to reduce the tax burden. “The partial exemption on the portion of social security contributions for invalidity, old age and survivors paid by employees for the pay periods from 1 July to 31 December 2023 (with the exclusion of the thirteenth month). The exemption is raised to 7 per cent if the taxable salary does not exceed the monthly amount of 1,923 euros”.
FRINGE BENEFITS – “The increase in the fringe benefit threshold to 3,000 euros is confirmed for 2023, exclusively for employees with dependent children. An extension to widowed parents of the increase in the single allowance envisaged for families in which both parents are busy”.
TERM CONTRACTS – With the decree approved on 1 May “amendments are made to the discipline of fixed-term employment contracts (so-called “fixed-term”), varying the reasons that can be indicated in contracts with a duration of between 12 and 24 months (including extensions and renewals), to allow for a more flexible use of this type of contract, while still maintaining compliance with the European directive on the prevention of abuse”, specifies Palazzo Chigi, in the note released after the CDM.
“Therefore, the contracts may have a duration of more than 12 months, but not exceeding 24 months: in the cases provided for by the collective agreements; for technical, organizational or production needs, identified by the parties, in the event of failure to exercise the collective, and in any case within the deadline of 31 December 2024; to replace other workers”.