How much is the cut in the Meloni government’s tax wedge worth? How much money will workers of various income groups put in their pockets? And what will happen in 2024? The work decree approved on May 1 brings about 100 euros more in the paycheck. But it will last until November. The cut in the tax and social security wedge between July and December will increase by another four points, without affecting the thirteenth. In particular, the discount on social security contributions paid by workers will rise, compared to what was already foreseen in the last maneuver from the current two points to six points for gross income, up to 35 thousand euros, or up to 2,692 euros per month. And from the current three to seven points for incomes up to 25 thousand euros. That is, those who have a salary that does not exceed 1,923 euros per month.
The simulations
The cut is in addition to what was foreseen in the maneuver approved last December. Then the Meloni government refinanced the 2% cut introduced by Draghi up to 35 thousand euros and increased this reduction to 3% up to 25 thousand euros, for a total cost of around 5 billion. In total, the cut for this year is worth 8.5-9 billion. As Open he explained, this is not the “most important cut in labor taxes in recent years”. The simulations on the various income brackets carried out by De Fusco Labor & Legal and reworked today by The print they say that:
- with a gross salary of 10,000 euros per year, Meloni’s tax cut causes the worker to put an extra 25.67 euros in his pocket, for an annual total of 269 euros and 50 cents;
- those who earn 12,500 euros a year take home an extra 32 euros and 8 cents, for an annual total of 336 euros and 90 cents;
- for the 15,000-euro income bracket, savings amount to 38 euros and 50 cents and the total is 404 euros and pennies;
- a gross salary of 17 thousand 500 euros gives the right to a discount of 38.41 euros and an additional 403.30 euros per year;
- with 20,000 euros of gross annual salary, the discount is 43.90 euros and the total is 460.90;
- the bar at 22,500 euros brings an additional 49.38 euros per year and the total to 518.50 euros.
Then there is the simulation of the payroll cut for the higher income brackets:
- those who earn 25,000 euros gross a year discount almost 55 euros with Meloni and 578 euros a year in total;
- the 27 thousand 500 euro range brings home an extra 60 euros per year and a total of 543 euros;
- for the 30,000 euros of annual earnings, the savings with the cut amount to 57.56 euros and the total to 542 euros;
- for the range of 32 thousand and 500 euros there are 61 euros more in the pay slip and 549 euros in total per year;
- finally, the range of 35 thousand euros saves 65 euros and 70 cents with the cut of Meloni and 591 euros in total.
Cutting the wedge for civil servants
For state workers, let it be known The messenger, the cut in payroll contributions will bring in your pocket from 48 to 65 euros net in payroll. The simulations are from the National Council of the Order of Accountants. The increases concern 2.2 million employees. The workers of the first and second area of the ministries, i.e. operators and assistants, with an average annual salary of less than 25 thousand euros, the net monthly increase will be 54.80 euros. With the previous cut, they will reach almost 96 euros. The latter, who earn 29,258 euros a year, will have 61.60 euros more and 93 euros in total benefit.
In tax agencies, the net monthly increase in payroll will be 64 euros. The biggest beneficiaries of the cut will be nurses and teachers. For those with an average salary of 29,834 euros, the monthly increase will be 58.50 euros and the total benefit will be 91.2 euros. For around 530,000 healthcare employees, who have an average salary of 31,623 euros, the net monthly increase will be 59.4 euros. And the total of 89.10 euros. Employees of non-economic public bodies, such as INPS and Inail, where the average wages are higher (but still lower than 35,000 euros) the net monthly increase in payrolls will be 64.9 euros. The total will be 97.4 euros net per month.
Previous
Before Meloni, workers had already seen a 2% wedge cut by the Draghi government. However, the executive led by the former president of the ECB had also reduced the personal income tax, with a maneuver of around 7-8 billion which had brought the foreseen rates from five to four. To this he had initially added a 0.8% cut in the tax wedge (financed with 1.2 billion) fleshed out with another billion with the Aiuti Bis decree. Total 9-10 billion.
A tax relief, that of the Draghi government, which is therefore worth around 15-16 billion also calculating the single check. The Conte II government, on the other hand, increased Renzi’s bonus to 100 euros per month for gross income up to 26,600 euros, with a reduction of up to 40 thousand euros. The provision, valid only for the second half of 2020, was then made structural with the subsequent Budget law. The extension had cost 3 billion in 2020 and 5 billion in the following year.
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