Tax wedge, up to 108 euros more per month in payroll: simulations by income bracket

The rules of the new Labor Decree

With the Labor decree comes a new and more robust cut to the tax wedge. This time the cut is as much as four points, making it possible to reach 7 percent for the lowest incomes. The reduction will apply, from July to December 2023, to payrolls with salaries up to €2,692 and will be equal to 6%; for those that do not exceed 1,923 euros it will instead reach 7%. From an operational point of view, the same mechanism currently already envisaged is proposed again, i.e. the reduction of the withholding tax payable by employees.

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– How much the salary increases with the cut in the tax wedge for those who earn between 13 and 35 thousand euros: all the calculations