What will the monthly 100 Euro bonus on your paycheck happen in 2024? Additional treatment, also known as the ex-Renzi bonus (an Irpef credit paid directly by the employer together with the salary, up to a maximum of 1,200 euros) has been approved for the year just starting. Although some changes have been made in the latest budget law, the income limits required to access this service remain unchanged. Until 2020, the old Renzi bonus was received by approximately 16 million workers with incomes between 8,174 and 40 thousand euros. Things are a little different today. Given that in 2024, the income limits required to benefit from additional treatment have not changed, the beneficiary group remains the same: What changes are there in the calculation rules that should reflect the changes in employee deductions made by the latest budget law? Who can benefit from this incentive, who is excluded and how does it work in detail? Let’s try to clarify.
The maneuver brought about the consolidation of the first two income brackets into a single rate for Irpef purposes (i.e. 23% for all income up to 28 thousand euros) and the equalization of deductions for employees and pensioners. As a result, work deductions for employees increase from 1,880 euros to 1,955 euros. This is a change that also affects the old Renzi bonus. In practical terms, this means that employees with an annual income of up to 15 thousand euros and receiving full supplementary treatment will continue to benefit from the bonus of 100 euros, for a total of 1,200 euros per year, provided that the gross income is met. The tax is greater than the deductions due and 75 euros must be subtracted from this amount.
This change was made to offset the increase in employee deductions, which increased the “tax-free area” (the income threshold at which taxpayers do not have to pay tax) to 8,500 euros. By removing 75 euros from the 1,955 euro deductions in 2024, we ensure that the 100 euro bonus continues for those with income over 8,174 euros and up to 15 thousand euros, thus ensuring that those who previously benefited remain the same. In other words, the change ensures that the group benefiting from the incentive remains unchanged despite the new IRPEF rates and the increase in deductions, meaning those in the income group between €8,174 and €8,500 have a reduced payroll of €100.
So whose income is between 15 thousand and 28 thousand euros? A bonus of 100 euros is also given to these workers, as long as the deductions do not exceed the gross tax due (i.e. the sum of taxes due in different income brackets). In this case, the difference between the deductions and the gross tax payable cannot exceed 1,200 euros per year.
The bonus is distributed every month throughout the year by the employer or the withholding agent who pays these payments in advance on behalf of the State. Insufficient taxpayers, i.e. those with gross taxable income within the “tax-free area” and those who cannot benefit from deductions because the gross tax applied to them is not high enough, are excluded from the bonus. Retirees, professional income earners and even those with a VAT number (self-employed or business owner) are not entitled to benefit from the discount.
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.
