With the aid decree bis of August, the government aims to help families exhausted by inflation.
In fact more and more Italian families have difficulty to move forward due to the increase in living costs and so the aid decree bis is the instrument chosen by the government to change things.
The bis aid decree of August will probably be the last social decree of the government Draghi.
The positive news
For the Italians comes a real bonus from 184 € per month. But let’s try to understand what happens.
In the aid decree bis there are extremely positive news but there are also disappointments for many Italians. In fact, there was talk of a VAT cut on supermarket goods but this VAT cut will probably not happen. The Italians would have been very happy with a VAT cut at the supermarket that would basically work like the cut in excise duties on petrol. It would have been a really strong help for families in need but apparently this cut will not be there. Bonuses on bills and the cut on petrol excise duties will instead be confirmed. Another disappointment is also the end of the € 200 bonus.
The surprise of the decree
In fact, many had claimed that after the 200 euro bonus in July extensions would arrive and therefore the 200 euro bonus would also return in the following months. However, the Draghi government did not follow this path. The Draghi government has opted for an increase in pensions and an increase in payroll. This is very strong aid to employees and retirees and therefore we must try to understand how they work and who will benefit from it. If the employees and retirees are certainly happy with this help, the VAT numbers and the recipients of income and citizenship pension they feel strongly excluded from government aid. The increase in payrolls will be really strong but the intervention on pensions is also interesting.
Strong help on salaries
Indeed retirees will receive already in the fall the increases for inflation that should have been triggered in January. But the strongest increase is precisely for employees. In fact, the government has added a new tax deduction to the tax deduction already active on payrolls. Adding the two decontributions together, we arrive at an increase of 184 on the paycheck per month. On a paycheck of € 2,500 per month so you have the benefit of an overall increase of € 184 per month. A paycheck of € 2,000 per month will have an overall increase of € 144 per month. This will go on until the end of 2022. Then with the arrival of 2023 the much desired cut in the tax wedge should come.
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