Who will triple the salary in July?

It will be a “rich” July with a much more substantial salary for some workers than in other months. Why these increases? This is the effect of the new cut in the tax wedge, and to this will also be added the fourteenth salary and the Irpef refund, which can usually be up to three times the monthly one. However, it depends on the circumstances (and some requirements) of the individual worker, which may be different. The personal income tax refund is a different matter if the worker doesn’t actually have to do anything about the fourteenth salary and the deduction from the tax wedge. Here, the economic return on the July 2023 paycheck will only apply to taxpayers who submit the 730/2023 model with a withholding tax return until 31 May. But let’s go in order to understand in detail what happened with the July salary and the fourteenth salary hikes, the tax return adjustment, and the tax wedge cut.

Three “extras” on your paycheck: who will have a maxi salary in July

Let’s start with the new deductions in the tax wedge on the payroll. At the cabinet on May 1, the Meloni government approved the labor decree, a package of measures for workers: among other things, the reduction in the tax wedge introduced by the Draghi government was strengthened. The tax wedge is the difference between the gross salary paid by the employer and the net salary from the employee’s paycheck, and consists of taxes and contributions: government intervention affects exactly the contribution the employee pays.

From July 2023, employers will need to revise their rules for calculating net salary from gross. For those with a monthly gross salary of 2,692 euros and an annual income of 35,000 euros, in fact, the new cut in the employee contribution rate is triggered by an additional 4%, in addition to 2/3. It started with the last budget law. Therefore, for those earning less than 1,923 euros per month, there will be a 7% deduction, and this will decrease to 6% for those earning between 1,923 and 2,692 euros per month.

The reduction in the social security contributions paid by the worker will start from July and will continue until December 2023, as we have explained here. Here are some practical examples with simulations by income range. For example, if you have an income of 10.000 Euros, the amount you can earn in July will increase by 25.67 Euros compared to the previous month. Even better in the case of those with an annual salary of 25 thousand euros: in this case the increase could be 54.87 euros. And it still goes up for those who get up to 35 thousand euros per year: for them that month’s paycheck will be enriched by about 65 euros more.

Fourteenth and personal income tax return in July 2023

And then there’s the fourteenth. For those employed in industries expressly provided for in the relevant collective agreement, the July paycheck will also bring the long-awaited payment of the fourteenth month, which by definition is equivalent to the last salary received. have worked for at least 12 months in the last year. Otherwise, it is recalculated taking into account only the worked months.

Instead, the Irpef reimbursement arriving in July will be a matter of “speed”: In fact, this reimbursement usually comes from the employer responsible for compliance. Therefore, if an Irpef credit is issued on the tax return, the employer will advance the amount in the paycheck, but only if the tax return is filed by May 31 using the 730 model. In some cases, the Irpef refund can also be very rich. : imagine, for example, that those who were entitled to 100 euros of additional treatment last year but did not benefit could easily get it back on this year’s tax return, thus getting a refund of 1,200 euros.

Source: Today IT

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