€440 Bonus Pay: Who Qualifies and When Will It Arrive?

Potential New Income Tax Break for 2025

The Italian government, under the 2025 Budget Law, is considering funding a new income tax (Irpef) cut, which would be an addition to the previous measure executed in the last budget plan.
This initiative could introduce a new salary “bonus” valued at up to €440 per year, complementing the €260 already awarded this year.

Collectively, over two years, the government led by Giorgia Meloni could provide a tax reduction amounting to €700 annually.
Additionally, this figure is enhanced by a contribution exemption for salaries up to €2,692, potentially yielding a net salary increase of approximately €100 per month (a measure expected to be continued in 2025).

Impact on Payslips and Tax Benefits

Given recent rumors regarding the new tax reform, provided funds are available, it’s essential to examine the possible implications on payslips.
Taxpayers could benefit from a potential new bonus of up to €440.

Understanding the €440 Bonus

Currently, under the recent tax reform funded by the last budget, Irpef is calculated based on three income brackets: 23% for income up to €28,000; 35% for incomes between €28,000 and €50,000; and 43% for amounts exceeding €50,000.

The first income band has been merged with the second, previously inclusive of incomes between €15,000 and €28,000 at a 25% rate.
This restructuring has resulted in a 2% reduction of the tax rate, translating into savings of up to €260 annually or about €20 monthly.

The maximum beneficiaries of this tax break are those earning €28,000 or more, while individuals with incomes above €50,000 have been excluded from the reform’s advantages due to a revision of deductions.

Future Tax Reductions: What to Expect

This initial cut is only financed for 2024, hence additional resources must be allocated in the next budget for it to continue into 2025.
However, it appears the government intends to further adjust income tax rates, specifically favoring the middle class.

One widely regarded possibility involves decreasing the second income bracket’s rate from 35% to 33%.
This would provide an additional 2% savings calculated on up to €22,000 (the income range between €28,000 and €50,000).

For instance, individuals earning €50,000 would save €440 annually.
Understanding the government’s future actions regarding income brackets above this threshold remains critical.

Expanding the Income Bracket

There are also discussions suggesting that the government may consider extending the second income bracket up to €60,000.
If implemented, this change could significantly benefit earners at this level.

As it stands, an individual with an income of €60,000 pays approximately €18,700 in Irpef.
Should the tax brackets be revised to include a 23% rate up to €28,000 and a 33% rate for the next €32,000, the total tax owed would decrease to €17,000, offering annual savings of €1,700.

However, it’s crucial to note that financing such a measure could be challenging, as it would incur a significant cost that the government might find difficult to support.

Ultimately, while parts of the funding for the upcoming tax reform might be sourced from revising the threshold for deductions — potentially dropping from €120,000 to €80,000 in 2025 — it seems less likely that the necessary resources will be sufficient for a bonus of up to €1,700 for those earning between €50,000 and €60,000.
The most plausible outcome for the 2025 Irpef reform would be the confirmation of the €260 bonus along with the introduction of the anticipated €440 bonus.