The minimum pensions officially enter the menu of the next maneuver. And they do it directly through the mouth of the Prime Minister Georgia Meloniwhich thus embraces one of the themes dearest to Forza Italia. «The minimum pensions it is one of our priorities”, assures the Prime Minister, recalling that in two years the government worked “for a full re-evaluation of all the pensions that reached up to 2.270 eurosensuring that they were fully adjusted to the cost of living” and also guaranteed “a revaluation to the 120% for the minimum pensionswhich have grown significantly.”
THE’economy which is growing more than other European countries, theemployment on the rise, theexport full steam ahead also reinforce the belief that the choices made so far are going in the right direction. For this reason, the drafting of the menu of the maneuver is focusing not only on easing the burden taxesalso on measures to support those who hire and create jobs. It is therefore difficult to give up confirming the maxi-deduction for the businesses that they are hiring, expiring at the end of the year. While work is reportedly underway to remodel the fringe benefitswith the hypothesis of a single ceiling for all 1,500-2,000 euros.
To define what will really enter the budget law for the 2025however, we are waiting to have a more certain picture on the resources available. Which at the moment appear limited, compared to the final objective: the estimated impact, says the undersecretary to theEconomy Federico Freni«it will be of 25 billion“. Some more elements will be available when the Mef will have finished the work on Structural budget plan (PSB)the new document that will replace the Nadef and will define the financial framework of the maneuver. In addition to the multi-year programmatic objectives to maintain the net spending trajectory, which for 5 years cannot be revised except in special cases, such as a new government or exceptional circumstances.
The new document must be sent to Brussels within the September 20th and the minister ofEconomy Giancarlo Giorgetti he wants to take it to Council of Ministers by mid-September, thus allowing the Parliament to have time to examine it. The biggest challenge will be to define the objectives on a horizon of 5 yearsinstead of the 3 as documents of public finance provided for by current legislation. In addition to the condition of indicating a series of reforms and investments, in order to be able to extend to 7 years the return from excessive deficit.
In this new framework, the plan could undergo some adjustments privatizations. Already in spring the Def had scaled down the initial objective of reaching the1% of GDPbringing the overall target of the three-year period 2024-26 at the 0.7% (about 14 billion). At the moment the loot is at 3 billionbut new moves are not excluded. The sights are set on Mps, Fs, Enav, Enibut also a liberalization of ports. As the game gets more smoky Post Office: the process started in January envisaged that the State would not fall below the 35%; at the end of May the change of course, never under 51%with the effect of reducing the potential collection to approximately 2 billion. The Prime Ministerial Decree However, it has not yet been modified and a solution does not seem to be on the horizon.
Meanwhile, the technicians’ work continues without stopping on the simulations that will be used for Mef to put down in black and white the measures for the next maneuver. The Prime Minister Georgia Meloni wants to concentrate all available resources “in supporting the businesses that take on and to strengthen the purchasing power of families and of the workers». Cutting of the wedge And IRPEF three tax rates are already guaranteed. Whether it will be possible to cut the rates for the middle class as well depends on how the biennial preventive agreement. The extension of the law to autonomous companies seems certain tax relief for working mothers. The aim is then to confirm the fringe benefitswhich today have two different exemption thresholds (one thousand euros for everyone and 2,000 for workers with children): the hypothesis, parliamentary sources explain, is to standardize them. It is also difficult that the extension will not be extended maxi-deduction to the 120% (increased to 130% For young people, womenand beneficiaries of the Income) for the companies who hire on a permanent basis.
Youth, Women and ZES Bonus: Incentives for Hiring 2024-2025
New bonuses for young people, women and ZES (Special Economic Zone) are ready to go unique for the South, intended for permanent employment carried out between the September 1, 2024 (in fact it will be Monday 2nd) and the December 31, 2025On the plate is the100% exemption from social security contributions for a duration of two years. The incentivesprovided for by the Labour-Cohesion decree approved on the eve of May 1st and then converted into law at the beginning of July, vary between 500 and 650 euros per monthThese bonuses were introduced with the government’s aim of promote stable employment of young people and women, especially in Noon.
I’m almost there 2.5 billion euros the overall resources foreseen for these three bonuses up to 2027. The implementing decrees of the Ministry of Labour and Social Policiesin concert with the MEFfor the full operation of the exemption.
Incentive ceilings
- For the hiring of under-35s: the maximum bonus amount is 500 euros per monthwhich rises to 650 euros in the South.
- For the regions of Southern Italy: the bonus is also recognized for over-35s who have been unemployed for at least 24 months.
- For the hiring of womenof any age: the ceiling of the relief is always 650 euros per monthbut the period of unemployment status drops from 24 to 6 months for residents in the Noon.
Youth Bonus
The measure recognizes private employers who, from September 1, 2024 and up to the December 31, 2025they assume young people under 35 with a permanent contract, theexemption for 24 months from paying 100% of social security contributions (excluding prizes and contributions) Inail), within the maximum limit of 500 euros per month for each worker. In the case of hiring at a branch or production unit in the regions Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria And Sardinia the amount goes up to 650 euros per monthThe bonus does not apply to relationships of housework and of apprenticeship. Precondition is that there has been no individual or collective dismissal by the employer in 6 months preceding the incentivized hiring. And if there is a dismissal in the 6 months subsequent, the exemption is revoked and the benefit enjoyed is recovered. The resources envisaged are over 1.4 billion.
Bonus fountains
Even in this case, the law recognizes the exemption, for a maximum of 24 monthsof the 100% of social security contributions (excluding prizes and contributions) Inail). Valid for permanent employment from September 1, 2024 to the December 31, 2025Of women of all agesunemployed for at least 6 months if in the regions of Single ZES for the South; at least 24 months if resident in other regions. It also applies to unemployed women for at least 6 monthswherever resident, working in professions and sectors with an employment disparity rate higher than 25% between men and women, identified by ministerial decree. The maximum amount of the bonus is 650 euros per month. The exemption does not apply to relationships of housework and of apprenticeship. Beyond 438 million the resources indicated.
ZES Bonus
The exemption, for 24 monthsof the 100% of social security contributions is expected up to 650 euros per month for each worker hired on a permanent basis between September 1, 2024 and the December 31, 2025. But it is guaranteed exclusively to private employers which occupy up to 10 employees in the month of the facilitated hiring. Furthermore, the employee must have completed 35 years oldbe unemployed for at least 24 months and be employed at a branch or production unit located in the ZES. About 591 million the expected funds.
These new incentives represent an important government tool to encourage employment growth in Southern Italy and support the Italian economy in the coming years.
What are fringe benefits and what does the government intend to do?
What Are Fringe Benefits?
THE fringe benefits are additional benefits that an employer can offer to their employees in addition to the basic salary. These can include a wide range of benefits, such as:
- Meal vouchers
- Company cars
- Health insurance
- Discounts on corporate products
- Corporate accommodation
- Refunds for shipping costs
- Company-paid training courses
Fringe benefits are a way to incentivize employees, improve their well-being and job satisfaction, and can also have tax advantages for both employers and employees. For example, fringe benefits within certain limits of value can be tax-free or subject to preferential taxation.
What does the government intend to do?
The Italian government is considering changes to the regulation of fringe benefits in the next budget law for 2025. Among the main proposals:
- Restructuring of the exemption ceiling: Currently, fringe benefits have two different tax exemption thresholds: up to 1,000 euros for all employees and up to 2,000 euros for workers with children. The government is evaluating the possibility of standardising these thresholds, introducing a single roof between 1,500 and 2,000 euros for all workers. This change is intended to simplify the system and ensure greater equity among beneficiaries.
- Support for businesses and workers: The government, under the leadership of the Prime Minister Georgia Meloniwants to concentrate available resources “in supporting companies that hire and to strengthen the purchasing power of families and workers”. The goal is to promote stable employment and incentivize companies to hire, offering tax breaks that also include fringe benefits.
- Confirmation of the maxi-deduction: It is likely that the confirmation will also be made maxi-deduction for companies that hire on a permanent basis. This measure would allow companies to deduct a greater percentage of employee-related expenses, potentially including fringe benefits, for the benefit of young people, women, and recipients of the Citizenship Income.
- Extension of the relief to self-employed mothersThe extension of the tax relief provided for employees to self-employed mothers seems certain, which could also involve fringe benefits in the incentive package.
These proposals are currently being evaluated and will be better defined with the presentation of the Structural budget plan (PSB)the new document that the Ministry of Economy and Finance (MEF) must send to Brussels by September 20. This document will replace the Nadef and will provide the financial and programmatic framework for the government’s fiscal maneuver.