Salary Bonus of €8,260 in the 2025 Budget Law: Eligibility and How to Apply

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2025 Budget Law Confirms Significant Pay Bonuses

The 2025 Budget Law confirms an annual “bonus” that amounts to a total of 8,260 euros in take-home pay.
This figure is reached by adding up various measures included in the budget that affect paycheck calculations, notably by reducing the tax wedge, which is the difference between gross and net pay, and incentivizing employers to grant bonuses or other forms of financial support by taking advantage of certain tax breaks.

However, the bad news is that there are no new measures to further support wages at this time.
This implies that, generally, earnings will remain the same as in 2024, with the exception of workers in sectors where contract renewals have occurred in the meantime.
Furthermore, certain categories face the risk of earning less next year, particularly mothers with two children who benefited from a contributory exemption of up to 3,000 euros in 2024, as this bonus has not been extended as hoped.
Similarly, parents of children over 30 years old no longer qualify for tax deductions.

Reduction of the Tax Wedge Continued

One of the most anticipated aspects of the budget is the confirmed continuation of the tax wedge reduction in 2025.
While the structure of payments has changed, the good news is that this pay bonus has become structural and will remain valid for the next five years.
After this period, a genuine reduction in the fiscal and contributory burdens is expected.

Specifically, the current contributory exemption will only be maintained for low earners—those who do not pay enough income tax (Irpef) due to tax deductions.
This primarily affects individuals earning up to 20,000 euros.
For others, there will be a shift from a contributory exemption to a tax deduction, which will alleviate some of the Irpef owed by the worker.

In any case, the paycheck increase should mirror what was previously provided by the existing bonus schemes.
For an approximate annual income of 35,000 euros, this equates to an additional 100 euros net per month, totaling 1,200 euros per year, with no application to the thirteenth paycheck.

Moreover, the bonus will extend to incomes up to 40,000 euros, albeit partially.
The goal is to avoid the unpleasant scenario where earning just one euro more results in the total loss of the bonus, which paradoxically leads to a lower net salary, despite a recognized increase from the employer.

Bonus for Mothers on Paycheck

Unfortunately, there is little comfort for mothers being granted the contributory exemption, which amounts to a maximum of 3,000 euros annually.
Currently, this benefit is available to mothers with two children (at least one under 10) or mothers with at least three children (at least one underage), but only for the latter group does the exemption extend through to 2026.

Mothers with only two children may find themselves facing a lower paycheck in 2025 due to the lack of an extension for this bonus.

Irpef Tax Rates Remain Unchanged

The Irpef tax rates will remain the same as in 2024.
The structure is as follows: a 23% rate on the first 28,000 euros, 35% on income between 28,001 and 50,000 euros, and 43% above 50,000 euros.
These rates provide workers with savings, which could translate to an annual increase of up to 260 euros.

Further understanding of the results from preventive agreements will be needed to evaluate the possibility of an additional Irpef cut—from 35% to 33% for the second bracket—and extending benefits for incomes up to 60,000 euros.

Changes to Fringe Benefits

The rules governing fringe benefits remain unchanged, allowing employers to grant bonuses of up to 2,000 euros to workers, fully tax-exempt.
Fringe benefits include all company-provided goods and services beyond salary, such as cars, phones, and health insurance policies.
They also cover reimbursements for utility bills paid by workers.

In 2025, the fringe benefit exemptions will mirror those of 2024: 1,000 euros for all employees, increasing to 2,000 euros for those with at least one child.

Production Bonuses Encouraged

Another confirmed incentive is for employers to grant productivity bonuses.
For the years 2025-2027, the reduced tax rate of 5% (as opposed to 10%) will remain for amounts up to 3,000 euros.

End of Child Deductions for Adult Children

On a less positive note, while benefits like contributory exemptions and fringe benefits present a potential annual bonus of 8,260 euros, a concerning change arises.
The deductions for dependent children will only apply to those up to 30 years old—previously no age limit existed, only income restrictions.
For children over 30, deductions will continue only for those with disabilities.
This change could potentially cost workers up to 950 euros per year.

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