The 2025 budget will benefit the salaries of employees, especially some income groups. Especially those who earn between 35 and 40 thousand euros gross per year will be able to benefit for the first time from a bonus that has until now only been granted to low-income earners. This bonus will be increased by up to one thousand euros per year compared to 2024. According to government estimates shown from Corriere della Sera. For incomes below 35 thousand euros, the increases will turn into a handful of euros, since the bonus was already active last year.
Income is below 35 thousand euros
According to simulations carried out at the Ministry of Economy, those with a gross salary of 25 thousand euros will see a very small increase in their salaries: an extra 119 euros per year (less than 10 euros per month) is calculated. The change is subject to the nature of the bonus changing from 2025. For incomes up to 20 thousand euros, the incentive is income-related: 7.1 percent up to 8,500 euros; 5.3 percent between 8,500 and 15 thousand; 4.8 percent between 15 thousand and 20 thousand. Above 20 thousand and up to 32 thousand a tax reduction of 1000 euros is provided, which starts to decrease above 32 thousand euros and reaches zero at 40 thousand.
who was punished
The group most penalized by the maneuver was the group whose taxable income exceeded 75 thousand euros (i.e. 3,500 net euros per month). These are the 1.3 million workers who will see an average of 769 euros less in cuts. Starting next year, the same slice will also be subject to a deductible expense ceiling ranging from 14 to 8 thousand euros for those who declare more than 100 thousand euros per year. However, it should not be forgotten that while these ceilings are maximum for those who have 3 children, these ceilings are halved for singles.
Pay attention to the wedge calculation method: losses ahead
But the effects of the maneuver are more complex and will not only have a positive impact on wages. In fact, the method of calculating the tax wedge deduction must be taken into account: from 2025, general income will be taken into account; i.e. any early retirement to which, in addition to salary, other income, such as rent or similar activities, partial disability benefits, contributes. This calculation method is based on simulations Timpone tax firm This will actually lead to losses: in particular, workers with incomes between 15 and 40 thousand euros will lose between 82 and 1,080 euros gross, in competition with other incomes (up to 50 thousand euros), La Stampa reports. The tax study explains that the worst effects will be between 32 and 40 thousand euros: In this case it actually “The promised benefit has been reduced to just a handful of euros and, if they have any other income, it has been canceled completely. It is true that the potential beneficiary pool has reached 1.3 million taxpayers, but they risk being left in a difficult position to profit from this very little”.
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.
