ROME. The Labor Decree of the Ministry of Economy and Finance has aroused great attention for its implications on the salaries of public employees. The new methods for applying the payroll increases, resulting from the cut in the tax wedge, have finally been disclosed for the pay period from July to December 2023.
The NoiPA system, responsible for managing civil servants’ entitlements, will be involved in this important update. However, a key aspect to keep in mind is that the payment will be deferred in the following month’s payslip. This means that the long-awaited additional tax relief, due starting from the month of July 2023, will only be paid with the August slip. This practice will be repeated until the month of December 2023, the disbursement of which will only take place in January 2024.
But what exactly does the increase in payroll entail? In essence, this is a significant increase in the tax wedge, which can be translated into relief on INPS withholding taxes, aimed at public employees, with particular attention to the pay terms of Public Administration employees.
It must be said that there are two “brackets”: employees who receive gross monthly wages of up to 2,692 euros will be able to benefit from a cut in the tax wedge of up to 6%. This represents a significant injection of resources into the pockets of workers, thus helping to improve the purchasing power and quality of life of many civil servants.
Even more significant is the impact on gross wages of up to 1,923 euros per month, since in this case the cut in the tax wedge will reach up to 7%.