Up to 10,000 Euros Bonus to be Included in Payslips with this New Incentive

New Bonus Opportunities for Workers in Italy

Are you looking to receive a bonus of up to €10,000 in your paycheck? Employers might soon be incentivized to do so.
Currently, the government has introduced various bonuses to encourage companies to provide wage increases to their employees.
These initiatives include the tax exemption on fringe benefits (up to €1,000, or €2,000 for workers with dependent children) and productivity bonuses, which are taxed at a reduced rate of 5% even in 2024.

As it may be financially burdensome for employers to implement a permanent salary increase, these tools could serve as a viable alternative.
Not only are they non-binding in the long term, but they also enjoy a more favorable tax treatment compared to a stable pay raise.

Introducing a Potential Structural Bonus

In addition to the existing incentives, discussions are underway to introduce a new bonus that could be structural rather than limited to a specific period.
According to the President of the Labor Committee of the Chamber of Deputies, Honorable Walter Rizzetto from Fratelli d’Italia, new legislation is being considered to regulate employee participation in company activities.
This project proposes two significant changes: employees could have a say in decision-making processes, such as sitting on the Board of Directors, and a salary increase of up to €10,000 through profit-sharing.

Understanding Company Profits and Participation

Before delving into the details of this new bonus, it’s essential to clarify the concept of profits.
In business economics, profit is simply the difference between revenue and costs.
A positive difference indicates that the company is making a profit and experiencing growth, while a negative difference signifies a loss or deficit.

Many companies, particularly larger ones, reward their employees at the end of profitable years by sharing part of the profits.
This could be in the form of a productivity bonus, taking advantage of the current 5% tax incentive.
However, the new legislation proposes a more structured approach to profit-sharing, with specific criteria to be met:

• Participation must involve at least 10% of total profits.
• The bonus cannot exceed €10,000 gross.
• Payouts must comply with company and territorial collective agreements.

While the legislation may take time to be fully implemented, it is expected that the €10,000 bonus in paychecks will become a reality by 2025.