Payroll increases are expected between December and January, but not for all workers. Here’s why and who they belong to.
Expensive bills and increases in the cost of living in general are still influencing the lives of many Italian citizens. As a result, the economic value of money continues to fall and theinflation continues to weigh on the current account.
Here comes some good news for workers: payroll increases in December and January. Unfortunately, the increases will not affect everyone but only employees. Here’s the reason.
Higher paycheck for these workers: find out if you’re among the lucky ones
Salaries in December and January will be higher because this year Christmas and New Year’s Day, being two unused holidays, will be recognized as extra working days.
Obviously this is not new since the recognition of unused holidays as extra working days is provided for by the legislation. This year, however, December 25 and January 1 fall on a Sunday, becoming two holidays not enjoyed. This means that if it falls on a non-working day you will not be able to enjoy the paid rest recognized for national holidays.
We remind you that on 24 and 31 December, respectively Christmas Eve and New Year’s Eve, workers are not entitled to extra pay because they are not public holidays. For this they will be considered as two ‘normal’ weekdays.
Among other things, in December a large part of the employees will receive the thirteenth (some can receive it monthly in their pay packet). This year it will be affected by the 2% contribution relief if the gross amount is less than €2,692. As a result, the net amount will increase.
Read also “Thirteenth in postal bonds: an idea to save and earn with crazy returns“
Furthermore, the INPS communicated that the relief will be applied to salaries starting from July, but in reality all the reliefs between January and June will benefit from the 2% rate.
What will the tax relief entail? In practice, on the thirteenth the employee will pay 2% less contributions. Therefore, the contribution rate will be 7.19% (previous years it was 9.19%); therefore whoever receives a thirteenth of:
- 1,000 euros will have an increase of 20 euros;
- 1,500 euros will have an increase of 30 euros;
- 2,000 euros will have an increase of 40 euros.
Even in January salary increases
In the January 2023 paycheck, in addition to the 2% contribution relief, workers who receive a gross salary of less than 1,584 euros will receive a 1% increase. In this way the relief will be 3%, while the contribution rate drops to 6.19%.
Finally, starting from January, civil servants’ salaries will have a 1.5% increase on a provisional basis until the new contract. However, the increase, unlike the contribution relief, will be gross: for example, on a salary of 1,500 euros, an increase of 22.50 euros is due, but taxes and contributions will have to be deducted from this.
