Tax Reform: From 100 Euro Bonus to Thirteenth Month Salaries, Here are the Priorities

The New Legislative Decree on Ires and Irpef: What You Need to Know

Recently, Deputy Minister Leo announced a €100 bonus for January 2025 as part of the legislative decree on Ires and Irpef.
This bonus aims to compensate for the non-approval of the thirteenth-month bonus scheduled for 2024 due to budget constraints.

Irpef 2025: Anticipated Changes

The current reduction in Irpef tax rates for 2024 is temporary and will expire at the end of the year.
Without intervention, Irpef in 2025 would revert to 4 tax brackets, resulting in an additional tax burden of €260 per year for incomes up to €50,000.

However, the confirmation of the 3 tax brackets for 2025 has been announced, with almost all necessary provisions in place.
This extension is considered secure.
Moreover, efforts are being made to assist the middle class, specifically those exceeding €50,000 in annual income, by sourcing funding from the two-year preventive agreement.

Government’s Tax Reform Priorities

The government’s initial step towards tax relief for lower incomes is the €100 bonus set to be disbursed in January 2025 to all employed individuals earning up to €28,000 annually, married, and with at least one dependent child.

This bonus is a temporary measure to offset the lack of tax relief for the thirteenth-month salary in December 2024.
As there are currently no provisions for the 2024 relief, the benefit, under a different name, will be postponed to January 2025 as a €100 bonus facilitated by the withholding agent following a formal declaration.

Upcoming Interventions

Another goal of the legislative decree implementation is to boost employment.
The 120% super hiring bonus, previously outlined in the second implementing decree, was awaiting an interministerial decree to regulate its terms.
This forthcoming regulation will retroactively benefit companies that hired permanent employees starting from January 2024.

The Coesione Decree aims to reform labor policies to stimulate employment and reduce unemployment rates.
These forthcoming measures target young individuals, women, and disadvantaged workers while providing separate initiatives to encourage new business ventures.

In specific southern regions, companies can benefit from up to €500 monthly tax relief for 2 years (potentially extended to €666 monthly in select areas) when hiring individuals under 35 with no prior permanent employment.
This incentive is expected to remain in effect until December 2025, aiding in economic recovery and job creation.