Armed Forces and Police Salary Bonus: Decree Published in Official Gazette. Amount, Requirements, and Payment

Government Decree on Tax Benefits for Police and Armed Forces

In the Official Gazette, general series no.
184 dated August 7, a decree issued by the President of the Council of Ministers was published.
The decree, signed on June 24, provides for the recognition of the benefit of reducing income taxes for individuals and regional surcharges to the personnel of the Police and Armed Forces, in accordance with article 45, paragraph 2, of legislative decree no.
95 of May 29, 2017.

To put it simply, this refers to the so-called tax deduction bonus, introduced alongside the latest reorganization of roles and careers to compensate for the discontinuation of the 80 euro “Security Bonus” introduced by the Renzi government.

The tax deduction bonus allows members of the Armed Forces and Police to recover some or all of the taxes paid on additional income components, such as overtime pay.
There is an annual maximum amount determined by a specific decree, as well as an income limit that must not be exceeded to qualify for the benefit.

The publication of the decree is crucial as it clarifies the amounts of the tax deduction bonus for 2024 and the recipients.
Let’s delve into the details of the bonus that will be recognized in the current tax period but will be disbursed at the beginning of the next year.

Overview of the Tax Deduction Bonus for Armed Forces and Police

The 2018 reorganization of roles and careers significantly revised the salary calculation criteria for members of the Armed Forces and Police.
For instance, it abolished the 80 euro Security Bonus reserved for Defense and Security sector employees under the Renzi government.

Following this, various benefits were introduced to ensure that no one was disadvantaged.
Thanks to the efforts of unions and Co.ce.r.
representatives of the Armed Forces, a tax deduction was implemented to reduce both the Personal Income Tax (Irpef) and the value of regional and municipal surcharges calculated on additional income for those below a certain income threshold.

Eligible Recipients and Amount

As stated in the decree’s article 1, the reduction of income tax and regional surcharges applies to military personnel of the Armed Forces, including the Coast Guard, as well as civilian and military Police personnel.
It is essential for personnel to be in active service in 2024.
Furthermore, the income received in 2023 must not exceed 30,208 euros to qualify for the benefit.

The tax deduction allows for the recovery of taxes calculated on additional income, including fixed and continuous allowances, received in 2024, up to a maximum limit of 610.50 euros this year.

In the best-case scenario, this is the amount entitled to the personnel, though it may be lower if the tax amount is less, as mentioned earlier.

Payment Details

The payment procedures resulting from the tax deduction bonus are specified in paragraph 2 of the decree’s article 2.
It reiterates that the tax substitute (the relevant Administration) will apply the tax reduction in a lump sum.

This process occurs during the final tax settlement at the end of the year.
Therefore, personnel can expect to receive the amount in their February payslip of the following year, 2025 in this case.

However, if the tax deduction surpasses the gross tax amount, the excess part can be utilized in the tax return as a deduction against the tax due on the same income received in 2024 and subject to a separate tax rate.