What does the Labor decree approved in the CDM on May 1st provide?

While in Piazza San Giovanni in Laterano people sang, played music, criticized the government, Giorgia Meloni he had summoned the ministers for a Council of Ministers which was also to deal with work. Even if it was May 1st, Labor Day. The Prime Minister underlined precisely this: “The government has chosen to work to give answers to workers and to those who legitimately aspire to improve their condition. And we do it with a very articulated series of measures, the most important is related to the cut labor taxes,” he said in a video.

What actually changes with the Work decree?

The most important intervention is labor tax cuts. The government has decided to add another four cut points to those already endorsed. So as to get 7 points less for income up to 25,000 euros gross per year. And 6 points less for gross income between 25,000 and 35,000 euros. The total value of the cut is around 4 billion (3 billion after taxes) which will be distributed to employees for six months, from July to December. As of 1 January 2024, the wedge cut is no longer financed. The increase in payroll, estimates the Ministry of the Economy, reaches about 100 euros per month on average.

Added to this is the increase (with an allocation of 142 million in 2023) up to 3 thousand euros of the exemption threshold for fringe benefits (i.e. all compensation in non-monetary form) for employees with minor children.

The decree also decided that from 1 January 2024 the inclusion allowance will be launched for families with disabled, minors or over-60s, while from 1 September 2023 the job activation tool will be activated (with training courses but also the possibility of doing the substitute civil service) for all those who can be employed. All of this will lead to the exceeding the Citizenship Income.

Also expected the refinancing of the fund for the reduction of the tax burden and an extension to widowed parents of the single allowance increase. Incentives are envisaged for those who hire the beneficiaries of the inclusion allowance. Then the threshold for casual work is raised (from 10,000 to 15,000 euros for those who work in congresses, fairs, spas and amusement parks). We also intervene on fixed-term contracts with fewer restrictions on the reasons.

The council of ministers also supports the decree with a bill, with other regulations ranging from funds for the employment of the disabled to the mechanisms for applying the Cig in case one works only for a few days. The control activity in the field of INPS contributions is also strengthened, accompanied however by a halving of the penalties for those who pay immediately, within 40 days of the assessment.