For civil servants, the tax wedge will be cut in the August paycheck

Cutting the wedge for almost 1.2 million public employees and, therefore, payroll increases starting in August.

The news is given by the Ministry of Economy and Financewhich makes it known that it has defined the methods of payment to public employees of the measure connected to the Labor decree, approved by the government by the May CDM and converted into law on 3 July last.

“Starting in August NoiPa will pay the increases envisaged by the Labor decree”, reads a note recalling that the increases in the payroll derive from the increase in the cut in the tax wedge envisaged by the Labor Decree for the period July – December 2023.

The decontribution, as for the previous reductions in the tax wedge, will be paid by NoiPa on the slip of the month following the one in which the benefit is recognised. Therefore, the payment referring to the month of July will be disbursed with the August slip, it is detailed. This will then continue with the following months, up to the month of December 2023 which will be paid in January 2024.

Numbers of interested parties

The press release from the Mef recalls the effects of the work decree: for the period July-December 2023, it provides for the raising of the tax wedge up to 6% for gross employee monthly wages lower than 2,692 euros and up to 7% for those lower than 1,923 euros gross employee monthly. These impacts derive from this: the civil servants managed through the NoiPA system who will benefit from the 6% tax wedge cut are approximately 860,000, while the audience affected by the 7% measure is approximately 335,000 employees.

“One-off” arrears, Uilpa: “Tastes like almsgiving”

With the next payslips, other items are also foreseen, on which, however, the harsh comment of Sandro Colombi, secretary general of Uil Pa arrives: “We learn from the Ministry of the Economy that with the July and August slips, the amounts and the related arrears of the so-called ‘one-off ancillary fee’ will be paid for 13 months”, explains the union. Which he adds: “The provision is provided for by the 2023 budget law in favor of public employees instead of renewing the expired national collective bargaining agreements. We are talking about amounts that for the Central Functions vary between 23 and 42 euros gross. If we also calculate the managers, the average rises a bit, but the substance does not change much”. For Colombi “in times when inflation officially hovers around 6.6%, public workers do not despise the little they receive from their employer, i.e. the state. should guarantee a salary dynamic of 16.1%””.