Wedge cut and salaries, up to 55 euros more per month: increases by income class

Decree (perhaps) ready by the end of the month

The decree with payroll increases could be approved as early as next week. For the current year, the Def has made 3.4 billion available to cut the tax wedge and 4.5 billion for 2024 destined for the tax reduction fund. For 2023, the benefit, according to the government’s intentions, should start as early as May and end in December. The Minister of Made in Italy, Adolfo Urso, confirmed what was said by the Minister of Labour, Marina Elvira Calderone the cut of another percentage point on the social security contributions paid by employees, which thus rises to 4% for incomes up to 25 thousand euros and 3% for those between 25 and 35 thousand euros (on April 20, however, Minister Giorgetti raised the bar by saying that the new wedge cut could reach “even two points for some”, but not specifying better than that). However, the government’s commitment for the duration of the legislature remains 5 total points, obviously if there are the resources. But, concretely, remaining with the most probable hypothesis of a further 1% cut in the tax wedge, what would be the effects on the payroll? We asked the National Accountants Foundation to carry out simulations on 9 income brackets.

21 Apr 2023

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