The 2025 budget law approved yesterday evening in the Council of Ministers, worth around 30 billion gross, was set by the government to help the medium-low incomes of employees and pensioners and to provide a stimulus against the demographic winter. To do so, it makes structural, at least for the next 5 years, the cut in the tax wedge for incomes up to 35 thousand euros and the reduction to 3 Irpef rates. These two measures alone cost 15 billion euros.
The resources will come, among other things, from cuts in ministerial spending – in the order of an average of 5% of the budget – amounting to over 2 billion euros. And then from the contribution of banks and insurance companies, for 3.5 billion euros. The key concept claimed by the government is that “there are no tax increases”.
Only the healthcare expenditure item is growing, the Mef speaks of 2,366 million euros more for 2024. But the opposition and associations in the healthcare sector contest the amount of the funds, judging them insufficient for the needs of the sector.
From the review of tax expenditures, however, around one billion should arrive. While the funds collected with the two-year composition with creditors, which can be joined by 31 October, remain outside the budgetary sources of the measure, they could possibly be used to expand the wedge cut range to include the middle class and the perimeter of the flat tax. .
Among the most important innovations included in the measure: a 1,000 euro card for the benefit of parents with an ISEE within 40 thousand, the exclusion of the single allowance from the ISEE calculation, the extension from two to three months of paid parental leave 80%.
Confirmations and some news on pensions. For 2025, all last year’s measures are confirmed – Social Ape, Women’s Option and Quota 103 – and a tax incentive is introduced for those who choose to stay in work. The full revaluation of allowances and minimums is also guaranteed, eliminating the sterilization mechanism in force.
Also on the way is a ceiling – set at the compensation of the President of the Council of Ministers – on the salaries of the top management of bodies, individuals and foundations that receive a contribution paid by the State.
The cut in the Rai license fee from 90 to 70 euros per year has also been confirmed for 2025.
Below are some of the main points of the text approved by the Council of Ministers.
TAX REFORM AND WEDGE CUTTING
The effects of cutting the wedge and the merging of Irpef rates divided into three brackets already in force in the current year are made structural.
RENEWAL OF CONTRACTS
The government immediately provides resources to finance the procedures for renewing public employment contracts, with particular reference to the three-year period 2025-2027.
HEALTH
Resources are also increased to finance the renewal of contracts. In particular, in the next two years the allocation is in line with nominal GDP growth.
SUPPORT FOR FAMILIES AND BIRTH BONUSES
The measures on parental leave are confirmed and strengthened. A “Card for newborns” has also been introduced which recognizes 1000 euros to parents within the ISEE threshold of 40 thousand euros to cover the numerous first expenses for each new born. The maneuver strengthens the bonus intended to support the attendance of nursery schools, also providing for the exclusion of the sums relating to the single universal allowance from the calculation of the ISEE. Among the social measures, the “dedicated to you” card is refinanced for 2025 to the extent of 500 million. The number of dependent family members will be taken into account when making deductions. The more numerous family members, the greater the space for tax deductions.
HOUSE AND BUILDING BONUSES
The renovation bonus is extended for 2025 at 50% for the first home and 36% for the second. The extension of the 50% furniture bonus for furniture and large appliances has been confirmed.
BANKS
On Deferred Tax Assets the deduction is suspended for 2025 and 2026. While on stock options the deduction is triggered when the participation is actually assigned, if there is a positive differential.
WORK AND BUSINESS
In the South, the incentives aimed at the employment of young people and female workers are confirmed, which will also be recognized for employment relationships activated in the two-year period 2026-2027. Also confirmed are the decontributions in favor of companies located in the SEZ and the incentives for self-employment in strategic sectors for the development of new technologies and the digital and ecological transition. In addition to the confirmation of fringe benefits for all those entitled to it, the amounts are increased for new hires who agree to move their residence by more than 100 kilometres. Among the fiscal measures, the 5% preferential taxation of productivity bonuses paid by companies to workers is confirmed also for the three-year period 2025-2027
PENSIONS
Last year’s measures are confirmed and those aimed at public and private workers who reach retirement age but remain in work are strengthened.
PUBLIC INVESTMENTS
Resources are foreseen to ensure that, following the end of the Pnrr, the trend in public investment spending is consistent with the requirements of the new European governance. There will be an enhancement of resources for the defense sector.