Salaries, which increase more with the cut of the tax wedge: the simulations, who earns

The big amendment

In the end, the Maneuver raised (albeit slightly) the income threshold of employees who will benefit from the cut in the tax wedge to 3%: from the initially planned 20,000 euros to 25,000 euros (up to 1,923 euros per month). In fact, this is the 2% extension introduced by the Draghi government, increased by a further 1%. The 3% cut, according to Istati data, will affect around 15.4 million employees (of which 4.2 million below the threshold of 7,500 euros). Instead, as regards incomes between 25,000 and 35,000 euros (from 1,923 euros to 2,692 euros per month), only the 2% tax wedge cut is extended. In both cases, the salary can be increased, in December, by the thirteenth salary or by accruals if the supplementary salary is paid every month. The rates of contributions for pension purposes are generally 33% (of which 23.81% is paid by the employer and 9.19% is paid by the employee, which is affected by the cut in the contribution wedge).
Simplifying, employees with gross salaries of up to 25,000 euros in 2023 will pay one percentage point less than last year and three points less than in 2021 (nothing changes compared to the second half of 2022 for those with wages between 25,000 and 35,000 euros), with the consequent improvement of the paycheck and without negative effects on the pension because the missing contribution coverage will be ensured by the State.
Warning: bearing in mind that the reduction in contributions (2 or 3%) affects the deductible burden (compulsory contributions), which decreases and in turn reduces the taxable amount. The consequence is that the basis of the Irpef calculation increases and is reflected in the tax deduction. Therefore, the net payroll is lower than the tax deduction.
But, in practice, how much will the paychecks of these workers increase? Let’s try to give some examples.

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