Calculating the 13th Salary in 2024: Updates and Confirmations on How Much You Are Entitled to

Calculation of the 2024 Thirteenth Salary

Several changes have been introduced this year regarding the calculation of the thirteenth salary, especially concerning the rules converting the gross amount to net.

Thirteenth Salary Calculation Method

In 2023, employees contributed a reduced percentage to their thirteenth salary, thanks to the contributory relief.
This percentage was 3% for amounts below €1,923 and 2% for those below €2,692.
In 2024, however, the ordinary rates of 9.19% in the private sector and 8.80% in the public sector apply.

Thirteenth Salary Bonus and Timing

A bonus on the thirteenth salary is now recognized, although it will be paid after the Christmas bonus is credited.
Despite these changes, the rules for calculating the thirteenth salary and its maturity date remain the same.

Calculating the Thirteenth Salary Amounts

Calculating the gross amount of the thirteenth salary is relatively straightforward.
However, converting it to a net amount may present some challenges.
Understanding a few simple concepts can help determine a close estimate.

In Italy, the thirteenth salary is a right guaranteed by all national collective labor agreements.
It amounts to 1/12 of the annual gross income and should be calculated based on the actual months worked.
For instance, an employee who worked from March 1, 2024, to December 31, 2024, for €1,000 gross per month would calculate it as follows:

((Monthly Gross Salary * Number of Months Worked) / Total Months)

(€1,000 * 10) / 12 = €833.33

Calculation Timing

The thirteenth salary accrues throughout the year, even during periods when the employee is not actively working due to reasons such as vacation, illness, or maternity leave.

Elements for Calculation

Calculating the thirteenth salary involves considering various elements such as monthly and annual gross income, seniority bonuses, and other specific allowances.
This amount is then prorated based on the actual months worked during the year for that employer.

Net Amount Calculation

To convert the gross amount to net, deductions must be made based on the applicable contributory rates.
In 2024, ordinary contribution rates apply, which are significantly higher than the reduced rates from the previous year.

For example, on a thirteenth salary of €1,000, contributions of €91.90 or €88.00 (public sector) need to be paid.
Additionally, a higher tax rate applies to the end-of-year income, further reducing the net amount received.

Net Calculation Example

For a gross amount of €1,000, after deductions and taxes, the net amount may be €699.24.
This is lower than the previous year due to the absence of reduced contribution rates and a less advantageous taxation scheme.

Thirteenth Salary Bonus

In 2024, a thirteenth salary bonus was introduced by the government to offset the removal of the contributory relief on the Christmas bonus.
Eligible recipients are single-income families with an annual income below €28,000, where the spouse and at least one child are dependents.
The bonus amounts to €100 and will be paid in January 2025.