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Payroll revolution: increases for everyone from July!

The revolution on the paycheck that from July it will be heavier for all Italians who receive remuneration as an employee. But even self-employed workers who do not have a paycheck, but who issue invoices or tax receipts, will see their income increase thanks to thetemporary allowance to children. Instead, the categories of workers they will see are different paycheck increased due to the renewal of employment contracts, and for the increase in the amount ofallowance to the family unit. And that’s not all. From August a further increase, thanks to income tax cut for the income bracket between 28,000 and 55,000 euros.

Paycheck: increases for PA employees

On 10 March, the Minister for the Civil Service Renato Brunetta had signed, in the presence of Prime Minister Mario Draghi, the Pact for the innovation of public work and social cohesion. One of the cornerstones of this pact is the salary review in the PA sector. The funds intended to increase the paycheck of public employees were 3.8 billion euros, for a average increase in paychecks of 107 euros. Approximately 3 million PA workers affected. The increases in the paycheck, as written above, is on average 107 euros. In fact, since there are different sectors in the Public Administration, the increases are different. Let’s see a little in detail.

The PA sector that will obtain the greater increase is that of non-economic public bodies (such as INPS and Inail) whose salaries exceed an average of 40 thousand euros. For them there will be a monthly increase in paychecks of 126 euro.

Follow the tax agency workers which should see an increase of 116,76 euro.

In third position with just over 97 euros gross monthly there are employees of the health service (excluding doctors, who are part of the managerial staff and have a separate contract).

Finally there was also the renewal of the contract of the school sector for the three-year period 2019-2022 which provides for an average increase of 98 euros per month.

In the ministries – where about 140 thousand employees work and the average salary is 30,211 euros – the gross monthly increase when fully operational should be of 94,58 euro.

Finally, as the rear, there are the public employees of local administrations like the Municipalities. They will have an increase of 91 euros approximately, considering that salaries are the lowest among the sectors (29,135 euros on average).

Metalworkers paycheck: the increase is 104 euros

The metalworkers have seen themselves recognized the contract renewal national collective on May 26th. The changes to the paycheck started on June 1, 2021. The renewal touches the period 2021-2024 and will bring a increase in payroll of 104 euros. The increase will not be immediate but divided in quattro tranches. The first started on 1 June with an increase of 23 euros. Three other increases will follow: € 23.00 from 1 June 2022; € 25.00 from 1 June 2023; euro 33.00 from 1 June 2024.

The monthly increase when fully operational, therefore in June 2024, ranges from 75.94 euros for level 1 to 114.68 for the 9th level.

The renewal of the metalworking national collective bargaining agreement not only leads to increases in payroll, but also improvements from the point of view of corporate welfare. From June 2022, employers will be able to pay a contribution equal to 2.2% of the contractual minimums to workers under the age of 35 who decide to allocate the severance pay to the Cometa fund. While on the social security side, for workers who retire, the possibility of remaining enrolled in the Metasalute supplementary health care fund is extended.

Payroll increases of 104 euros for couriers

In the period of the pandemic it was the workers who made it possible to deliver the necessary goods to Italian homes, hospitals, supermarkets, and not only to be able to spend the lockdown period in a more peaceful way. Are the courier and hauliers. Even for them from June the paycheck increases by 104 euros. This increase affects over 400,000 transport workers and was a historic renewal. The increase is applied to all companies in the sector associated with Unionmeccanica-Confapi. The payroll increase will be € 104 fully operational, starting with the first tranche of the increase in June in which the paycheck is increased by € 23. The other increases will be € 25 in June 2022; 25 euros in June 2023; 33 euros in June 2024. From 2022, on the other hand, flexible benefits will also start, ie vouchers worth 150 to 200 euros to be able to purchase goods and services.

Paycheck for graphic designers: one-time fee of 300 euros

There is no real paycheck increase for i workers employed in the graphics sector. For them the expected increases are only one, that is, received only in the month in which it is recognized. The following month, the paycheck returns to be equal to that of the second month prior to the one-off increase. So a giugnor, the graphic designers of the publishing industry have been recognized 200 euro. The others 100 euro will be disbursed in the pay slip for June 2022. However, not everyone can benefit from this increase. The requirement is to be on the payroll on January 19, 2021. All hires after this date will not have the expected increases. These sums are gross, therefore subject to contributions and personal income tax.

Paycheck: increase in July due to ANF effect

The reform of family allowances (ANF) through a bridging solution that sees both the ANF and the temporary child allowance coexist, pending the departure from January 1, 2022 of the single universal child allowance.

For those who have a paycheck, therefore they are employees, and who submitted the application to INPS on 30 June, the new allowance for the family unit will be recognized from the July paycheck. New because for the first time the increases of the amounts is not linked to the Istat variation, but were decided to make the allowances to the family unit comparable with the temporary allowance and therefore to avoid losing money starting from January 2022 when the ANF will disappear.

From 1 July the allowances to the family unit increase by € 37.5 for each child, for families with up to two children, and by € 55 for each child, for families of at least three children as required by Legislative Decree no. 79/2021. The income thresholds were also changed in order to be able to access the allowances for the family unit. There question in order to apply for the ANF, it must be submitted by June 30th.

For large families with an income of up to € 102,006.90, a total allowance of € 275.23 is due. Instead the family with only one minor child and the lowest income equal to 14,775.06 euros, the amount of the ANF is 137.5 euros.

Pending the departure of the new single child allowance, between July and December 2021 there will still be deductions for dependent children for all those who have a taxable income not exceeding 95,000 euros.

Paycheck: the personal income tax cut that generates an increase

It’s not official yet, but probably there enabling law on tax reform it could arrive in July. This means that from August the paycheck could still have a jolt. Always positively, because this time the tax reform intervenes on tax rates and in particular on the range between 28,000 and 55,000 euros. In fact, this band currently has an imposition of 38% with a jump of 11 points from the previous band. The current proposal is to lower the personal income tax for this bracket to make it more gradual.

In the draft that was drawn up by Luigi Marattin e Luciano D’Alfonso, and which should become a proxy law already in the month of July, it is expected to cut the rate of this bracket which is currently set at 38%. Among the proposals is to provide for a continuous rate system, but only for the middle income brackets, accompanied by an intervention on the no tax area, a minimum exempt to be understood as a maxi-deduction.

The paycheck increases with the personal income tax bonus

It also continues in July the tax wedge cut. By now the former Renzi measure (Renzi bonus) has become structural and all the recipients of a paycheck benefit from it, but also the recipients of the NASpI. The supplementary treatment o Irpef bonus of 100 euros, is recognized to workers who have a income up to 28,000 euros. The reference income is the total one, that is, it also takes into account other income subject to personal income tax and income deriving from properties subject to the flat rate tax.

The 2021 budget law recognized the Irpef bonus as an integral part of the tax reform that reduces the tax burden due to Irpef up to income not exceeding 40,000 euros. In fact, the personal income tax bonus is canceled as soon as the total income exceeds that threshold.

Expert in ethics and controls, aspiring journalist, born in 1976.
I graduated in Political Economy from theBocconi University, and I have a Master in Management in the “public utilities” sectors at MIP. Since 2001 I have been involved in audit, compliance and risk management within multinational companies in various sectors, such as: *IT, Luxury, GDO, Gaming, assuming roles of responsibility and team management. Passionate about ethical issues in business, for some years I have also been dealing with ethical sustainability of companies and alternative finance.

My motto is? “Anything can be done when the truth is seen through the eyes.”

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