Increase of 700 euros but the paycheck is lower, the shocking discovery of a worker

When the employer announces a salary increase it is always a joy for the employee, who begins to look forward to the greater sums he will have at his disposal.
However, when, despite the promised increase, the paycheck drops, it is certainly a shock for the worker who cannot explain what could have happened.
This is the case of a very young, brilliant and enterprising employee, to whom the employer grants a raise of 700 euros, but finds himself with an even lower paycheck than the previous month.
A paradoxical situation that cannot be explained, but which in many ways could reflect what happens to many other employees, perhaps even with less substantial increases.
Increase of 700 euros but the paycheck is lower.
The promised increase does not bring the desired results.
Why is the paycheck lower? The paradox of the increase The promised increase does not bring the hoped-for results Hired at the beginning of 2023, the young man immediately proves that he is indispensable for the private sector company in which he works and precisely for this reason, and to reward him for his dedication, the in January 2024 his employer gave him a very substantial salary increase, of 700 euros gross, without realizing the consequences this would have had for his paycheck.
The salary actually goes from almost 2,300 in December to almost 3,000 euros in January.
What increases is the reabsorbable superminimum (an item of remuneration that is not quantified by the qualification or level of employment of the employee, but is the result of an ad personam agreement between employer and employee) which goes from around 400 euros to around 1,100 euros .
The increase is there, it is real and it also affects the worker's hourly salary and the gross paycheck which increases from 2,600 euros in December to 3,100 euros in January.
What is shocking, however, is the net income which drops even without "accepting" the substantial increase in the slightest.
read also How to read your pay slip: complete guide Why does your pay slip get lower? The first element to evaluate is the cut to the tax wedge which, precisely because of the increase, brings the annual salary above the 35,000 euros within which it is recognized.
In the pay slip, when compared with that of the previous month, therefore, the IVS contribution exemption provided for by Law 234 of 2021 which amounted to approximately 140 euros per month is no longer applicable.
Furthermore, the increase leads to a cut in the employee deductions due, which decrease, resulting in an increase in the personal income tax due.
It should also be considered that as the salary increases, the share of IVS contributions paid by the worker also increases (which is equal to 9.19%).
Lastly, it should be considered that regional and municipal surcharges were added to this worker's January pay slip which were not foreseen last year, being the first he was hired.
Although the salary actually rises to almost 3,000 euros, with a gross salary of 3,100 euros, therefore, the deductions from the paycheck exceed 900 euros and, in fact, nullify the substantial increase received, bringing the net salary to be a few dozen euro lower than that of the previous month.
The paradox of the increase If the increase had been of a smaller amount, the young man would not only have seen, in part, the benefits, but he would have continued to benefit from the cut in the tax wedge which brought about 140 euros to his paycheck (to which the amounts deriving from the increase would also have been added).
This appears like a paradox given that to have a higher paycheck, in this case, it was necessary to recognize a lower increase that would keep the gross annual salary below 35,000 euros.
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