Starting from January 2024, almost 800 thousand female workers with children will be able to benefit from a new “bonus”, which is an extra tax deduction introduced by the new budget law. year. The measure, which will also be valid for 2025 and 2026, introduces different treatments for mothers with two daughters or three or more sons.
How does the bonus for working mothers work?
The measure provides a 100% discount on social security premiums paid by the Social Security Institution for disability, old age and survivorship benefits for mothers with three or more children (one of whom is a minor) for pay periods between January 1, 2024 and December 31, 2026. Worker until the month of the youngest child’s eighteenth birthday, up to the adjusted maximum annual limit of 3 thousand Euros. However, for mothers with two children, one of whom is at least a minor, the tax credit is the same but only valid for 2024 (payment periods are from January 1, 2024 to December 31, 2024). Tax exemption will apply to all mothers who work on a permanent contract basis, regardless of salary level, except for domestic work.
Target audience and benefits
According to the technical report of the 2024 budget law, it is stated that approximately 800 thousand women may be affected by this measure. In the private sector, the number of working mothers with two children, one under the age of 10, is around 571 thousand, and the number of mothers with three or more children, one of whom is underage, is around 111 thousand. To these should be added working mothers working in the public sector, which according to estimates should equal one-fifth of those in the private sector.
What will be the economic benefit? According to estimates of the Parliamentary Budget Office, the “bonus” could mean a kind of “additional fourteenth” of up to a maximum of 1,700 euros: “The contribution reduction, we read in the technicians’ note, is purely an increase in disposable income. The after-tax benefit will gradually increase until it reaches around 1,700 euros.” will grow, approaching the gross salary of 27,500 euros, which will remain almost constant for higher salaries.” According to UPB analysts, approximately 57 percent of the tax cut for mothers will be reserved for workers with salaries below 35 thousand euros, and 43 percent will be reserved for workers with higher salaries. The operation is expected to cost around 450 million euros, excluding high Irpef and local surcharges.
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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.
