Budget and Mothers Law: Tax relief from the second child onwards, custody bonuses, and paternity leave

Budget and Mothers Law: Tax relief from the second child onwards, custody bonuses, and paternity leave

Contribution subsidy for working mothers without income limits. But a maximum of 3 thousand euros annually. More daycare support and an extra month of parental leave. But in the meantime, VAT on early childhood goods is rising, doubling on nappies and baby food. The so-called tampons tax returns to 10%: tampons will be more expensive. The 2024 Budget Law stipulates that mothers will receive higher salaries. But the discount on subscriptions is only intended for mothers who have more than one child. On the other hand, the custody bonus is only valid for those born after January 1, 2024, in families with an ISEE of less than 40 thousand euros. It will be increased to 3,600 euros, provided that there is already another child under 10 years old in the family.

Budget and mothers law

Deconstruction, explains today Sun 24 hoursIntended for mothers who have at least two children. The exemption, recognized within the annual maximum of €3,000 and remeasured on a monthly basis, will establish a more generous salary. The rule is designed for all workers with a permanent employment relationship except for domestic work and the self-employed). The cost to the state should amount to about 700 million euros. The rule will be valid for payment periods from January 1, 2024 to December 31, 2026, with two differences:

  • For mothers with three or more children, up to the 18th birthday of the youngest child;
  • Also on a trial basis for mothers with two children, with the youngest child under 10 years old.

The formula provides a deduction on contributions for the employee’s share in relation to the number of children.

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Disassembly

From January 1, 2024 until December 31, 2026, we read in the government document, that working mothers “of three or more children who have permanent employment relations, excluding domestic labor relations, are granted an exemption of one hundred percent one hundred on the share” Social Security contributions for disability, old age and survivors Those who depend on the worker until the youngest child reaches the age of eighteen, up to a maximum of 3,000 euros adjusted on a monthly basis.”

The exemption is recognized, on a trial basis, for the payment period from 1 January 2024 to 31 December 2026 also for working mothers of two children with a permanent employment relationship with an ISEE ceiling of 40 thousand euros. But until the youngest child reaches the age of ten. While the increase introduced in 2020 was raised to 2,100 euros, raising the current subsidy from 1,500 euros to a maximum of 3,000 euros.

Parental leave and fringe benefits

Then there are optional parental leaves: in 2024, two months of the six leaves available during the six years of a child’s life will be paid at 80% of salary instead of 30%. However, in the following years, it will change again: in one of the two months, the wage will be equal to 60% of the salary, and in the other it will remain at 80%. Additional help also comes to those who have more children regarding this Fringe benefits: For 2024, the tax exemption limit (equivalent to 258 euros) will be increased to 1,000 for all employees and to 2,000 for those with dependent children. Finally, as announced, the exemption of government bonds from the ISEE calculation is included in the budget law. This is a choice that the opposition described as “unfair.”

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Bonus-ish

Finally, there is a custody bonus for those born after January 1, 2024, in families with incomes of less than €40,000. It will be increased to 3,600 euros, provided that there is already another child under 10 years old in the family. The bonus is currently up to €2,500 per year between €25,000 and €40,000 ISEE and up to €3,000 below the €25,000 threshold. Structural strengthening, thanks to an additional allocation of $240 million for 2024 (additional for subsequent years). The contribution, to repay the fees paid, will always be paid by INPS in 11 monthly installments, thus €327 per installment.

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