2024 Epiphany Bonus: Amount, Eligibility Requirements, and When Funds Will Appear in Paychecks

New Epiphany Bonus to Support Employee Purchasing Power

A new measure aimed at boosting the purchasing power of salaries is set to be introduced in the coming months: the Epiphany Bonus, also known as the Befana Bonus.
Currently, details regarding eligibility and payment methods remain unclear, as the implementing decree that will regulate its key aspects is still pending.

It is crucial to remember that during the fiscal reform, on April 30th, the Council of Ministers provisionally approved a legislative decree that revises the overall tax regime for personal income, corporate entities, and organizations, also impacting the thirteenth-month salary.
The new guidelines related to the tax treatment of the thirteenth-month salary will facilitate the Epiphany Bonus payments in 2024.
However, the bonus is expected to be exclusive to a limited number of workers, as specific eligibility criteria must be met.

What is the Epiphany Bonus 2024?

The government is addressing the taxation mechanics surrounding the thirteenth month, which is typically taxed more heavily compared to regular monthly salaries.
Generally, the thirteenth month yields a lower amount than usual salaries, often because deductions do not apply.
For this year, it will become even more challenging, as contributions reductions won’t be applicable to the thirteenth month, impacting workers whose monthly pay is under €2,692 gross.
Consequently, a substitute fiscal regime is being introduced, reducing taxes on the year-end bonus, which will then be paid directly on the payroll.

Value of the Epiphany Bonus 2024

The bonus amount has been confirmed at €100, which will be provided net of taxes.
This aligns with the previous integral treatment amount, which was not applicable to the thirteenth month and was available exclusively to those with an annual income below €15,000.

Eligibility Requirements

According to the reliable information currently available, the Epiphany Bonus will only be available to employed workers meeting the following criteria: a total income not exceeding €28,000; having a spouse and at least one dependent child, or one child dependent if the other parent is absent or has not recognized the child.
Additionally, a gross tax liability on employment income greater than applicable deductions is required.
Therefore, if deductions reduce the tax owed to zero, the bonus will not be granted.

However, it’s possible that these eligibility requirements and the bonus amount may undergo revisions, as discussions are ongoing regarding the potential enhancement of the Befana Bonus.

When Will the Epiphany Bonus 2024 Be Paid?

The discussions surrounding the “2024” Epiphany Bonus are based on the deduction of the thirteenth month paid at the year’s end.
While eligibility assessments consider the current tax year, the payment date is currently set for 2025, with the bonus expected to be reflected in the payroll for January (thus paid out in early February).
There is speculation, however, that the government may expedite the payment to December 2024, as stated by Maurizio Leo, who aims to support families during a significant time of year.

Will an Application Be Required?

Similar to other financial aid measures, a formal application will not be necessary.
Instead, a self-declaration might be required, where employees confirm they meet the requisite criteria, including providing the tax codes for their spouse and dependent children.
The self-certification model will be made available once the eligibility requirements and payment procedures are clarified.