Changes in the Government’s Budget Law and Effects on Pay Slips: What You Need to Know for 2024

Changes in the Government’s Budget Law and Effects on Pay Slips: What You Need to Know for 2024

Confirmation arrives on the changes made by the Government for the new Budget Law: let’s discover the details and the effects on pay slips.

Regarding the new one Budget Law, the Government confirmed the changes envisaged for the tax wedge, the Irpef brackets and the tax discounts to be applied on productivity bonuses as well as on the thirteenth salary. Changes will have also repercussions on pay slips of employees which, for 2024, are expected to be slightly more substantial.

Salaries: what changes in January 2024

So let’s start with the news relating to tax wedge: starting from next January, in fact, for employees with a gross annual income of less than 35,000 euros, a reduction of social security contributions. Specifically, the relief is available for salaries up to 1,923.00 per month will be 7% while for those between 1,924.00 Euros and 2,692.00 Euros of 6%.

So how much will the increase in monthly payments be? Well, let’s give some examples: for an employee who earns 10.000,00 Euro per year the increase will consist of 45.00 Euros more per monthwhile it will be of 67,00 Euro monthly for an annual salary of 15.000,00 Euro and about 100,00 Euro for those who earn from it instead 35.000,00. And what about thirteenths and Irpef?

The tax advantages on thirteenths and the new Irpef rates

The tax advantages on thirteenths will still be reserved for incomes up to 35,000.00 Euros gross per year. Additional sums are expected an average rate of 15% which, for example for a worker with an income of 10.000,00 Eurowill result in an increase in the thirteenth of approximately 20,00 Euroof about 30,00 Euro for the income of 15.000,00 Euro e di 41,00 Euro for income from 25.000,00. Slight decline, however, for the incomes of 35.000,00 Eurowhose thirteenth provides for an increase of 32,00 Euro.

Read more:  Treasury to support loan amendments Royal Thai Police, Softloan Prepare a hundred billion to fill private liquidity.

The thresholds for cutting the tax wedge –

As for Irpef ratesas per the advances that have emerged in recent weeks and months, one is expected for 2024 reduction from four brackets to three: the first rate at 23%in fact, would be extended to incomes up to 25,000.00 while the secondfor incomes over 25,000 Euros and up to 50,000, al 33% and finally for incomes over 50,000.00 Euros al 43%.

Therefore, for example for incomes of 25,000.00 per year, the forecast is that the changes will lead to a annual discount up to 200.00 Euros, which would be added to the increases expected with the cut to the tax wedge and with the tax advantages applied to thirteenths. Taken together, all these measures should give a breath of fresh air to employees who are particularly suffering from rising prices.

2023-09-25 09:00:41
#Salaries #change #January #details #theWise #Magazine

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent News

Editor's Pick