October 6, 2022

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Pay slips: increases for employees (income by income)

Salaries are expected to increase thanks to the impact of Contribution discount 0.8% and review of income tranches and deductions. In particular, for workers with the lowest requirement, i.e. between 17 thousand and 38 thousand euros per year, there is talk of a net growth of up to 409 euros per year, while for those who earn from 38 thousand to 50 thousand euros per year, it will lead Reintroduction of personal income tax rates alone to €944 per year.

This is what the Draghi government intends to do to reduce tax wedgeAnd implement the measures that will be in effect starting in 2022. And the work is not finished anyway, given that the executive branch is still providing some things, especially to fix some problems related to the new system of tax cuts. Hence the decision to postpone that amendment, which was expected yesterday in the Senate Budget Committee. The plan, however, is already on the horizon, combining the first tax stage with the contributing one. Everything to interfere with the tax wedge.

income interventions

As a first step, the government intends to work through a review Income bracketsand related tax rates and tax deductions. Scale will mainly affect the middle class.

Moreover, with a contribution deduction of 0.8% for the share that workers have to pay, the executive branch will be more involved in reducing the wedge. However, this measure will remain valid only for 2022, and will concern annual income groups between 15 thousand and 35 thousand euros, with a wage Thus the total ranges between 17,250 and 38 thousand euros. Thus, those workers, who currently pay a contribution of 9.19%, will see the percentage drop to 8.39% in 2022.

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simulation

in his examination, sun 24 hours Gives some interesting examples of payroll slips. A feature of some importance can be seen in those incomes of about 17,250 euros per year, equivalent to 1,326 euros in total per month (13 months). In this case, the specific growth (net, not gross) is equal to 409 euros (318 euros obtained thanks to the tax regime and 90 euros related to a 0.8% discount).

As income progresses, the contribution deduction also increases, while the tax advantage decreases. It follows that for those incomes equal to, say, 25 thousand euros, the net accrual equals 263.74 euros, half of which is precisely due to the contribution deduction. When an annual income of 31 thousand euros is reached, the tax benefit drops to 133.74 euros, which is entirely due to the contribution deduction.

In the study analyzed, one realizes in essence that the 1.5 billion provided by the executive branch as additional financial resources goes to work on the income brackets least affected by the cutback. personal income tax rates. From 38,000 euros onwards, the 0.8% contribution will not interfere, but the revision of income brackets and tax deductions will have a greater impact. Thus, those with income equal to or close to 40 thousand euros, will receive a net benefit of about 944 euros annually.