Updated Net Salary Figures for 2025: New Tables Released
How Will Net Salaries Change in 2025?
Recently, the Council of Ministers approved the structural budget plan, shedding light on measures aimed at supporting workers in the upcoming budget law.
The government’s intention is to allocate necessary resources to make permanent fiscal and contributory benefits introduced in the recent past, aimed at narrowing the gap between gross and net salaries, known as the tax wedge.
The upcoming fiscal maneuver includes contributions relief and new Personal Income Tax (Irpef) brackets.
Notably, there’s also a proposal to continue the contribution exemption for working mothers with children for another two years, reaching €3,000 per year in savings.
From Gross to Net Salary: Contributions
To convert gross salary to net salary, the first step is deducting employee contributions, which currently stand at 9.19% for private sector employees and 8.80% for public workers.
In 2024, these percentages decreased due to government interventions, now set at 7% for salaries up to €1,923 gross or 6% for those up to €2,692 gross, with the same intentions for 2025.
This exemption applies monthly, excluding the 13th month’s payment, ensuring notable savings reflected in paychecks, as illustrated in updated tables.
From Gross Salary to Net: Irpef Tax
Next, after accounting for contributions, the Irpef tax applies according to active rates.
The 2024 tax rates, due to recent budget law modifications, apply a 23% rate for income up to €28,000, 35% for income between €28,000 and €50,000, and 43% for incomes exceeding €50,000.
These calculations will likely remain in place for 2025, with potential reductions offered on second-tier income rates.
Consequently, estimating net salaries for private sector employees will yield specific net amounts after contributions and taxes are deducted, which could vary based on additional local taxes and family deductions.
Looking Ahead
It is essential to note that these figures are indicative and can fluctuate due to regional taxes and possible government adjustments in Irpef brackets.
Therefore, while prospects look favorable for an increase in net salaries, they are subject to confirmation and approval in the forthcoming budget law.
