(slightly) higher payrolls in 2023: who benefits?

There is good news for public and private employees at the beginning of 2023, because the reduction in the tax wedge envisaged by the budget law to reduce the difference between gross and net salaries in workers’ salaries has already been reflected in the January payroll. wage. The reduction in social security contributions was brought to a limited extent (0.8%) by the Draghi government in the first half of 2022, followed by two points in the second half of the year. The Meloni government confirmed the aid for the whole of 2023, increasing it for earners up to 25,000 euros gross per year. The stated goal is to bring the reduction of contributions to five points in the legislative process: however, the necessary resources will need to be found and this will certainly not be easy (currently the costs of this intervention are very burdensome for the public budget. Given that they are very close to 5 billion euros).

Salary increases from January 2023

So who is eligible for these raises and how much is earned? In summary, those who earn up to 1,923 euros gross per month are eligible for a three-point reduction in the contribution rate: in this case, the payroll increase can be up to 58 euros gross. On the other hand, those who manage to earn up to 2,692 euros will see the two-point reduction in effect last year confirmed, which could again mean a gross benefit of 54 euros. INPS, in a January 24 circular, defined all aspects of the new rules that are currently in operation with January payments these days. All public and private workers are included, with the exception of domestic workers (who have certain legislation and lower premium rates).

In detail, the deduction will relate to the worker-paid contribution margin set at 9.19% for the social security component: according to the law, it will fall to 6.19%, up to 1,923 euros per month, and to 7.19% for the insured. Do not exceed 2,692 euros. The future pensions of the parties involved will not be affected: the law clearly provides that payments are calculated in full. Considering the maximum amount of 1,923 euros, the most important advantage of the three-point deduction is around the ceiling of 1,900 euros per month: there is actually about 57 euros more gross, but this amount is 38 euros net.

On top of that, the discount starts at around 40 euros: this is the gross increase where those who earn two thousand euros will have a net 26 euros. With 2,692 grosses per month (or 35,000 per year), you’ll get 54 more gross, which corresponds to about 30 net. The INPS indicates that the entitlement to exemption is calculated on a monthly basis: this means that if the threshold is exceeded in a given pay period, the benefit will be reduced (from three to two) or eliminated altogether. In fact, in the case of salaries of, for example, 2,692 euros, a possible increase would mean receiving an effective salary equal to or even slightly lower than the previous one, given that the increase would result in a loss of two percentage points. .

Source: Today IT