Comparing the changes at constant prices in the labor cost components between 2007 (the year preceding the economic crisis) and 2020 shows that “employers’ social contributions have decreased by 4%, also due to the introduction of decontributions while workers’ contributions remained substantially unchanged, taxes on employees increased by an average of 2%, the net salary available to workers fell by 10%». This is what emerges from the survey “Income and living conditions” 2021, with reference, as regards income, to the years 2019 and 2020 by Istat.
In 2020, according to Istat, with net income from employees decreasing by 5%, the average value of the cost of labour, gross of taxes and social contributions, is equal to 31,797 euros, 4.3% in less than the previous year. The net salary available to the worker – reads the report – is equal to 17,335 euros and constitutes just over half of the total cost of labor (54.5%).
The tax and contribution wedge, i.e. the difference between the cost borne by the employer and the worker’s net salary, is on average equal to 14,600 euros and although it has decreased by 5.1% compared to 2019, it continues to exceed 45% of the labor costs (45.5%). Employers’ social contributions constitute the highest component (24.9%), the remaining 20.6% is paid by workers: 13.9% in the form of direct taxes and 6.7% in contributions social.
In the first 11 months of 2002, according to the Istat analysis, 1.67 million households were beneficiaries of Citizenship Income and Pension, with 3.64 million people involved. The revocations involved 57 thousand households and the forfeitures were 254 thousand.