There is already a hypothesis that the maximum advance on contract renewal will be given to the November 2023 salary of state employees. A year’s worth of increases in one paycheck, in short, it may already be next month. The final decision will belong to the Council of Ministers, where public administration minister Paolo Zangrillo will present this request. The minister’s intention is actually to bring forward the renewal of public contracts worth €2 billion by paying payroll to employees in the next few weeks. In this way, confusion between “extra” and one-thirteenth will be avoided. Leading public managers can earn up to 2 thousand euros more per year, while this figure drops to around one thousand euros for civil servants. All security forces, from the police to the army, will also benefit: They are also expected to receive a big check as they await the renewal of their employment contracts in 2024.
Specifically for public employees, the government allocated 7.3 billion euros; 5 of these are for increases in the state sector, from professors to ministerial staff, INPS and tax offices. This figure also includes money for increasing police salaries. In 2023, an “advance” of two billion euros will be given between November and December. The advance will consist of a 6.7-fold increase in contractual holiday pay for public employees. This is an increase of 3.35%, which means a monthly sum that will fluctuate between 50 and 149 euros depending on qualifications and must be multiplied by thirteen monthly payments to be paid in a lump sum as mentioned above.
As of next year, actual contract increases are expected to cover the contractual holiday allowance. According to some preliminary calculations, these contractual increases will lead to a 6% increase in wages. Health represents a separate section. For doctors and nurses, the increases will be more meaningful thanks to a special allocation of 2.3 billion for the renewal of their contracts. There’s also another $700 million to raise pay for extra hours and eliminate waiting lists. In addition, 250 million euros will be provided to health services for 2025 and 350 million euros starting from 2026, in order to strengthen local aid by recruiting new health personnel.
Not only that, because public employees, like all other employees, will benefit from the confirmation of the contribution cut. In fact, the measure extends the deduction in contributions by 7 percent for those earning up to 25 thousand euros and by 6 percent for those whose salaries are between 25 thousand and 35 thousand euros. This measure will allow you to maintain a heavier paycheck of up to 100 euros per month for the next year too. An intervention is also planned regarding fringe benefits and company bonuses in the form of goods and services that are not taxed. Aid for workers with children will reach two thousand euros, compared to the current three thousand euros, while the tax exemption for workers without children will be one thousand euros. Reductions in productivity bonuses were also confirmed by preferential taxation of 5%.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
