The reduction of the second Irpef rate but with a limit on high incomes, aid to allow workers to recover their purchasing power, support for families, working mothers and businesses. The sterilization of the increase in the retirement age but totally only for tiring and demanding jobs, for others there is a gradual adjustment. And then resources for the sentence fund but also a list of measures to cover the 2026 budget. These are some of the chapters contained in the budget plan sent by the government to the EU Commission in Brussels. Here are the highlights of the maneuver which will cost 18 billion:
Irpef
The central measure of the maneuver aims to cut the second bracket of the rate from 35 to 33%, it concerns the middle class in an income range between 28 thousand and 50 thousand euros and the benefit would reach a maximum of 440 euros per year. The rule will cost around 9 billion in three years (2.7 billion per year). The benefit will be limited for higher incomes.
Banks and insurance companies
There is still a discussion on the banks’ front regarding the measures that will be introduced. But the contribution that could come from institutions and also from insurance companies is certain: 4.4 billion in 2026, the same in 2027 and 3 billion in 2028: overall 11 billion in three years. The Dpb writes that the contribution will not be a one-off.
Pensions
The expenditure amounts to 460 million euros in 2026 (equal to 0.02% of GDP). Next year, a continuation of the Women’s Option, Social Ape and Quota 103 is hypothesized. In the measure, the government will sterilize the increase in the retirement age only for demanding and demanding jobs, then introducing a gradual increase in the requirements.
Wages
To encourage salary adjustments to the cost of living, 2 billion are allocated in the budget law for next year. The hypothesis is to favor contractual increases and to strengthen the relationship between salary and productivity with a reduced rate: the hypothesis is 10%. Less tax also on the additional salary of the Public Administration.
Irpef deductions look at children
New developments arriving on the front of deductions which could benefit families with only one child. There could be an equalization between those who have one or two children, with a similar correction coefficient, for deductions above 75 thousand euros of income, modulated for this year based on the number of children.
Family and caregiver
The package provides resources for 1.6 billion for 2026. The strengthening of the bonus for working mothers with at least 2 children and with annual incomes under 40 thousand euros. So the refinancing for two years of the “Card dedicated to you” intended for the purchase of basic food items. Specific resources are intended to complete the reform of the care and assistance role of the family caregiver.
House
The renovation bonus on the first home has also been confirmed for next year at 50% and that on the second at 36%.
Businesses
The support is 3 billion euros in 2026, therefore tax credit for those located in the SEZs and refinancing of the Nuova Sabatini.
Healthcare
To the refinancing foreseen last year by the budget law, equal to over 5 billion for 2026, 5.7 billion for 2027 and almost 7 billion for 2028, 2 billion euros are added for 2026.
Fund and sentences
One-off forecast of 2 billion in 2026, equal to 0.09% of GDP. PNRR – Revenues of 5 billion are expected from the remodulation of expenses next year.
Ministries
Revenues of 2.3 billion are expected from the spending review in 2026.