May 1st Decree: from Christmas bonuses to superbonus – all the latest on labor.

Decree First of May: New Package of Measures and Incentives

The Meloni Government is working on a new package of measures and incentives related to employment with the Decree First of May.
The aim is to confirm the increases in wages, and the package is expected to include deductions for new hires, contributory facilitations, thirteenth-month bonuses, and tax breaks.
The decree is set to be approved on the occasion of Labour Day, the 1st of May, hence the name it has been given.

Decree First of May: What Incentives?

The decree is expected to encompass several incentives, such as:
– The so-called super hiring bonus, offering a 120% deduction for companies that increase their workforce;
– Thirteenth-month bonuses;
– Hiring bonuses in the South of Italy;
– Tax relief on production bonuses.

These interventions include previously announced measures, some of which are not entirely new.
Let’s take a closer look at the specific measures planned.

Thirteenth-Month Bonus

The thirteenth-month bonus is the only incentive that is still uncertain, as it remains a hypothesis for now.
However, it would consist of a one-off payment of €80 (or possibly €100), intended for employees with an income not exceeding €28,000, a spouse, and at least one dependent child.
This measure would not be permanent but would only apply to the 2024 thirteenth-month salary.
If this bonus is to be extended to the following years, it would require refinancing.

Productivity Bonuses

There has been significant discussion about productivity bonuses recently.
Initially, drafts and hypotheses suggested an increase in the tax rate from 5% to 10% for amounts up to €3,000.
However, it seems that the government has decided to step back on this proposal.
It is worth considering that not many companies would benefit from this incentive due to the amount involved and the practical challenges of implementing it.

Super Hiring Bonus

The Super Hiring Bonus was also discussed last year as part of the tax reform but has not been implemented yet.
According to the April Economic and Financial Document (DEF), this measure is expected to impact just under 400,000 companies.

What does it entail? It is an incentive aimed at companies that increase their workforce through new hires.
The most significant benefits will be granted to companies hiring individuals classified as vulnerable workers, including those who are:
– Under 30 years old;
– Former recipients of citizenship income support;
– Unemployed individuals.

This measure replaces the previous hiring bonus for under 36 and female workers, which expired at the end of 2023 and was not renewed.
The Super Hiring Bonus offers deductions of:
– 120% for each permanent hire;
– 130% for those employing people with disabilities, young individuals, women of any age, former recipients of citizenship income support who do not meet the conditions for the inclusion allowance.
The 130% deduction also applies to new hires working in regions that had a GDP lower than 75% of the EU27 average in 2018, and an employment rate below the national average.

The enhanced deduction for permanent hires also applies to individuals with business income, including sole proprietorships, partnerships, and self-employed professionals who have been active throughout 2023.