Impending Cuts: Which Bonuses and Incentives are at Risk in 2025?

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Potential Cuts to Bonuses and Benefits in Italy

The Italian government is considering a significant overhaul of its extensive bonus and benefits system as it aims to streamline various financial aids deemed unnecessary.
With an array of incentives, Italy offers a multitude of bonuses that could be at risk under the upcoming Budget Law.

While many of the current benefits may be reaffirmed, there is a likelihood that some will be modified or even eliminated, aiming to reduce expenses and eliminate superfluous financial aids.

Facing the Budget Law 2025

As the Budget Law 2025 approaches, there is an urgent need to devise strategies that lower spending without dismissing essential benefits, which financially assist families and enhance their purchasing power.

The Overwhelming Number of Benefits

Italy’s plethora of bonuses and benefits, impacting the economy by approximately 125 billion euros annually through various incentives, presents a complex challenge.
The government’s focus is to target measures lacking “absolute” social value that do not stimulate the country’s economy.

Two indispensable measures, however, are set to remain intact: the tax wedge reduction and significant incentives for hiring new employees.
These two strategies bolster economic growth by increasing workers’ purchasing power and encouraging hiring.

What Bonuses Are at Risk?

Certain benefits, especially in healthcare (like medical expense deductions and ticket exemptions for various demographics), housing (such as first home IMU exemptions), and employment (deductions for employees, retirees, and the self-employed), are less likely to see cuts.

As the government seeks to eliminate minor impact aids, it is important to note that tax expenditures—exemptions that reduce due taxes—will remain untouched.

What to Expect Moving Forward

Uncertainties still linger regarding which benefits might come to an end.
Concrete information will emerge after late August when consultations for the fiscal maneuvers commence, focusing on public expenditure rationalization.

Several bonuses have already faced cuts in recent years, including the monthly allowance for low-income individuals and various other benefits.
Stakeholders eagerly await updates on the status of existing financial aids.

For detailed guidance on agricultural bonuses, visit this link.

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